Definition of "Deferred Period"

In the case of insurance such as, permanent health insurance otherwise know as Income protection insurance, this is the period between when your incapacity starts to when a claim can commence. The deferred periods on these plans should be set to coincide with the your employers sick benefits package, for example of your employer pays you for a period of 6 months then it is most cost effective to set the deferred period on the plan to 6 months also. This is because the insurer will not honour a claim while you are in receipt of payments from elsewhere.