Stand Down Period
A stand down period is a specified period after your insurance policy starts during which certain events or conditions aren't covered.
A stand down period is a period of time at the beginning of an insurance policy where cover for certain events or conditions is limited or excluded. Once the stand down period has passed, those benefits may become available, provided all other policy conditions are met.
One of the most common examples in New Zealand is the 13-month suicide exclusion that applies to most Life Insurance policies. If the insured person dies by suicide within this period, a Life Cover benefit will generally not be payable. After the stand down period has ended, the exclusion typically no longer applies.
Some Trauma Insurance policies also include stand down periods for specific medical conditions. For example, a policy may require a heart attack to occur after the stand down period has ended before a claim can be considered. These requirements vary between insurers and policy wordings.
Stand down periods are different from wait periods. A wait period applies after you've become unable to work and determines when your benefit payments begin. A stand down period applies from the start of your policy and affects when cover becomes available for certain events or conditions.
Understanding any stand down periods in your policy helps ensure you know exactly when your cover takes effect and what limitations may apply during the early stages of your insurance.
Why It Matters
Stand down periods are designed to protect the integrity of insurance by limiting cover for specific events immediately after a policy begins. Knowing whether your policy includes one helps you understand when your cover becomes fully effective.
Common Misunderstandings
"A stand down period applies to my entire policy."
Not usually. Stand down periods generally apply only to specific events or conditions outlined in your policy.
"A stand down period is the same as a wait period."
No. A stand down period applies from the start of your policy, while a wait period is the time you wait for benefits to begin after making a claim.
"Every insurer has the same stand down periods."
No. The length of a stand down period and the conditions it applies to vary between insurers and policies.
"Once my policy starts, every benefit is available immediately."
Not always. Some benefits may only become available after any applicable stand down periods have ended.
FAQs about Stand Down Period
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It's a period after your policy starts during which certain events or conditions aren't covered.
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Many Life Insurance policies include a 13-month suicide exclusion as part of their policy terms. The exact wording and conditions vary between insurers.
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Some do. Certain medical conditions may have a stand down period before a claim can be considered, depending on the insurer.
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A stand down period applies when your policy first starts, while a wait period applies after you've made a claim and determines when benefits begin.
Every insurance policy is different, and understanding any stand down periods can help you know exactly when your cover begins. If you're unsure how these provisions apply to your policy, talk to a New Vision Financial Services adviser. We'll explain your cover in plain English so you know exactly where you stand.