What does "The waiting period is 30 days for all insurance plans" refer to?

By Penny Morey

Opinions expressed by Entrepreneur contributors are their own.

I recently received a job offer--my first out of college--and I'm a bit confused by some of the wording. Does this mean I will be provided insurance benefits in 30 days?
In most cases, the actual verbiage turns out to be that the insurance for which you choose to enroll starts the first day of the month after your first 30 days of employment. However, it does not mean 30 work days, it means 30 calendar days.

So, if you start a new job on July 6, for example, you actually would not be eligible for insurance until September 1. Most companies like to start the new insurance at the beginning of a month, versus mid-month.

Just so you know, insurance companies (carriers) recommend a waiting period to employers because enrolling new participants takes a bit of time to do and costs money in administration. So, a waiting period ensures that the new employee has time to select what coverage she can afford and wants to have and that the new employee lasts in the job for at least the waiting period.

First-day coverage is just about unheard of these days. Many companies actually have a 60 or 90 day waiting period for benefits--so this sounds like a good company/employer.

Hope that the new job works out well for you in every respect.

Penny is a seasoned human resources executive and consultant with over 25 years of diverse business experience in advising enterprise leaders on employment-related matters.

Editor's Pick

Related Topics

Business News

Opening a New McDonald's Franchise Will Be More Expensive in 2024

Starting January 1, franchise royalty fees will rise from 4% to 5% for new locations in the U.S. and Canada.

Business News

'Bar Tab Was Almost 80%': Restaurant Slams Well-Known Columnist After He Goes Viral For Claiming His Meal Cost $78

A photo of a burger and fries from 1911 Smokehouse BBQ at Newark Airport went viral for its alleged price, but the restaurant says the man didn't factor in his many alcoholic drinks.

Health & Wellness

The Art of the Power Nap — How to Sleep Your Way to Maximum Productivity

Whether you're shooting for the NBA finals or growing your business, a quick snooze can be a secret weapon.

Business News

'An Absolute Prize': Rare Great Depression $10,000 Bill Sells For Nearly $500,000

The $10,000 bill is from 1934 and was never in circulation.

Business News

Here's the Secret to Growing Your Small Business, According to Execs at UPS, Airbnb, Mastercard, and Other Big Brands

These 10 executives work at big companies, overseeing programs that help small business. Here's the advice they wish all small business owners were getting.