What is 'Successive Periods'

Successive periods are periods of time that follow one another chronologically and which are linked together by a common event. Successive periods are used in contracts when defining how long the contract period will last. A year-long contract, for example, will be comprised of 12 successive months, with the first month starting on the effective date and the last month ending on the contract anniversary date. The contract signing is considered the common event linking together the 12 months.

BREAKING DOWN 'Successive Periods'

Successive periods are used to denote continuation. Someone who purchases a subscription to a monthly magazine, for instance, will receive one issue each month for twelve months, with the string of months considered a successive period of time. The common link between the months is the subscription the person purchased. Insurance companies use successive period calculations when providing benefits to a policyholder, who visits a hospital for the same injury. Each visit is considered part of a successive period, and each visit is considered part of a continuation of the first injury, rather than a new injury.

In disability insurance contracts, it's important to know how insurance companies calculate the amount of time that benefits will be provided for injuries suffered. Insurance contracts provide for a maximum benefit period in which the policyholder can receive benefits for an injury. In the case of a disability contract, the benefits in question are a percentage of the policyholder’s income. The benefit period includes the number of days that benefits are drawn for a single injury or for successive periods of disability. Once the maximum benefit period has been reached, no further benefits will be paid.

Insurance companies often require a period of time to pass between benefit periods in order to not consider them successive periods. This is called a “waiting period” or “elimination period.” The amount of time may vary according to the type of injury, with benefits only paid for one injury at a time. During the waiting period, the policyholder should be able to work a certain number of hours to be considered part of active employment.

Successive Periods Contract Clause Example

Successive Periods. The term of this plan shall automatically be extended for one (1) additional year at the end of the initial term, and then again after each successive one (1) year period thereafter (each such one (1) year period following the Initial Term is referred to as a successive period). However, the committee may terminate this plan at the end of the initial term, or at the end of any successive period thereafter, by giving the executives written notice of intent to terminate the plan, delivered at least six (6) months prior to the end of such initial term or successive period.

  1. Concurrent Periods

    Concurrent periods refers to specific points in time in which ...
  2. Benefit Period

    The benefit period is the length of time during which a benefit ...
  3. Personal Injury Protection - PIP

    Personal injury protection is a feature of auto insurance that ...
  4. Elimination Period

    Elimination period is the length of time between when an injury ...
  5. Holding Period

    A holding period is the amount of time an investment is held ...
  6. Advertising Injury Coverage

    Advertising injury coverage protects policyholders from many, ...
Related Articles
  1. Insurance

    How to Protect Your Income No Matter What

    What does it mean to insure your income? Here are a variety of ways to do it and some insights into when it might make sense to invest in income insurance.
  2. Insurance

    Understanding Disability Insurance Policies

    Disability insurance is often overlooked because it is confusing. Here is some information to make it easier to understand.
  3. Financial Advisor

    How Do Workers' Compensation Benefits Work?

    What you need to know about Workers' Compensation benefits.
  4. Financial Advisor

    Disability and Business Overhead Coverage for the Self-Employed

    What every small business owner or professional needs to know about individual and business overhead disability income insurance plans.
  5. Investing

    What Are the Characteristics of a Successful Investor?

    Successful investors have a healthy life balance, are disciplined, and measure success properly.
  6. Insurance

    5 Things You Need to Know About Disability Insurance

    It's important to understand the true value of your ability to earn income, and to make sure it's protected.
  7. Managing Wealth

    10 Habits of Successful People

    10 of the most-often cited habits of people who have enjoyed success in business and in life.
  8. Insurance

    Protecting Your Income With Disability Insurance

    For a high-earning professional, income protection is essential. Here's what to look for in a disability insurance policy.
  9. Insurance

    Group and Individual Disability Insurance

    Disability coverage is important to have in case you become physically unable to work. You can purchase group or individual coverage.
Trading Center