Deferment Period


The period when the life insured has become unable to work until he starts receiving the benefit is called the deferment period.


In insurance, a deferment period exists for the employees who cannot work. During this time, the employee is not able to accumulate benefits, and the claim payments are deferred. The employee remains out of work due to illness or injury.


Pranav was enrolled under the life insurance policy offered by his company. However, close to the policy renewal, he met with an accident and was bed-ridden for 5 months. As a result, Pranav could not come to the office for work.

Therefore, Pranav will remain uncovered during these 5 months under the group life insurance policy. The period of 5 months when he will not be able to work until he receives benefits is called the deferment period.