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waiting period
(1) In medical expense insurance, a prescribed amount of time
following policy issue during which the insured's medical
expenses are not covered by the policy. Such waiting periods
usually last from 14 to 30 days following policy issue and
normally apply only to medical expenses arising from sickness,
not from accidents. (2) In disability income insurance, a
specified amount of time, beginning with the onset of the
disability, during which benefits are not payable. Such waiting
periods may last from seven days to six months. The waiting
period in a disability income insurance policy is sometimes
called the elimination period or the probationary period.
(3) In a group insurance plan, the length of time that a new
group member must wait before being eligible to join the group
plan. Also called a probationary period.
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waiver of deductible
provision
A provision found in some major medical coverages that waives
a claimant's initial deductible if the claimant's medical
expenses are the result of an accidental injury.
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waiver of premium
for disability (WP) benefit
A rider or a policy provision under which the insurer promises
to give up its right to collect the policy's premium if the
policyowner becomes unable to work because of an accident
or injury. The waiver of premium for disability benefit remains
in effect as long as the policyowner is disabled.
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waiver of premium
for payor benefit
A rider or provision often included in juvenile policies which
provides that the insurer will give up its right to collect
the policy's premiums if the adult policyowner, not the insured
child, dies or becomes disabled.
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war exclusion
provision
A life insurance policy provision that limits an insurer's
liability to pay a death benefit if the insured's death is
connected with war or military service. See result clause
and status cause.
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weekly indemnity
plan
A type of short-term disability income insurance plan which
typically pays a weekly benefit equal to a stated dollar amount
or a percentage, such as 60 percent, of the insured person's
earnings.
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whole life annuity
A mathematical term for a series of regular periodic payments,
each of which is made only if a designated payee is then alive,
with the payments continuing for that payee's entire life.
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whole life insurance
Life insurance that remains in force during the insured's
entire lifetime, provided premiums are paid as specified in
the policy. Whole life insurance also builds a savings element
(called the cash value) as a result of the level premium approach
to funding the death benefit. For descriptions of traditional
whole life products see continuous-premium whole life insurance,
graded-premium whole life insurance, joint whole life insurance
policy, limited-payment whole life insurance, modified-premium
whole life insurance, and single-premium whole life insurance.
For descriptions of nontraditional whole life products see
adjustable life insurance policy, current assumption whole
life insurance, indeterminate premium life insurance, universal
life insurance, variable life insurance, and variable universal
life insurance.
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withdrawal
Voluntary termination of an insurance contract by the policyowner.
See also lapse.
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withdrawal provision
A life insurance policy provision that permits the policyowner
to reduce the amount in the policy's cash value or accumulated
value by taking up to that amount in cash. This provision
is often included in universal life policies and annuity policies.
Also known as a partial surrender provision.
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workers' compensation
Government-mandated insurance that provides benefits to covered
employees and their dependents if the employee suffers job-related
injury, disease, or death.
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