What is a waiting period and which one should I choose?

The waiting period (also called the excess period or elimination period) is the time you must wait after becoming disabled before your benefit payments begin. Common waiting periods in Australia include 14, 30, 60, and 90 days, though some policies offer options from as short as 7 days to as long as 2 years. Choosing a longer waiting period significantly reduces your premium costs, sometimes by 30-50% or more. When selecting a waiting period, consider your financial circumstances: if you have substantial savings or sick leave entitlements, you might choose a 90-day waiting period to save on premiums. If you have minimal savings and need coverage to start quickly, a 14 or 30-day waiting period might be more appropriate. The waiting period can be structured as either consecutive days (you must be continuously disabled) or in the aggregate (cumulative days off work for the same or related condition). It's also important to note that during the waiting period, you receive no benefits and must support yourself through savings, sick leave, or other means.