The purpose of a waiting period in an insurance policy is to:

The purpose of a waiting period in an insurance policy is primarily to delay the start of benefits. This is a common feature in many types of insurance, including health, disability, and long-term care insurance. During the waiting period, policyholders will not be able to receive benefits, regardless of the claim's validity. This delay helps insurers manage their risk and limit their liability when new policies are issued.

By incorporating a waiting period, insurers can mitigate issues such as adverse selection, where individuals with existing conditions are more likely to purchase insurance. It provides a buffer that helps the insurance company assess the risk more effectively, ensuring that only claims arising after the waiting period is over are honored. This is advantageous for both the insurer and policyholder in establishing clear terms for when coverage begins.