24 Hour Loans glossary of financial terms

Benefit Period

A benefit period is a contract condition that is used within certain types of insurance policy. It is most commonly found in the kinds of policies that pay out benefits in the event of accident, illness or job loss. So, you will have a benefit period attached to accident, sickness and unemployment, mortgage payment protection and income insurance policies in most cases, for example.

These types of policy look to cover specific costs/give you an income if you cannot work for a specified reason. The benefit period is the period of time that these payments will be made. So, if the benefit period on your policy is set at 12 months, then you will be paid the agreed sum by your insurer for a maximum period of twelve months only. In most cases the benefit period will not start immediately ? you may have to wait a certain amount of time before the payments will be made.