Deferment Period

A term used in permanent health insurance which refers to a period, prior to payment by the insurers to the policyholder after a claim, during which no payments are made. For example, a typical deferment period could be six months so if a policyholder made a claim after contracting an illness which qualified, it would be six months later that payments would commence. Sometimes an employee's company will continue paying his/her salary during this period so it would be important to ensure that the permanent health insurance co-ordinates with the company's payment commitments. Also, as the deferment period increases so the premiums decrease.