Definition - What does Benefit Year mean?
A benefit year is a period of one year in which an insurance policyholder can receive insurance benefits from an insurance policy. Benefit years are commonly used in health insurance and in unemployment insurance. For unemployment insurance, the benefit year typically begins on the date that the claim is filed.
Insuranceopedia explains Benefit Year
Receiving unemployment benefits during a benefit year can be a crucial source of income for people who become unemployed. However, it is very important for people who are receiving unemployment benefits to try to find a new source of income during the benefit year. If they do not, then they may not have an income once their benefit year expires. This could potentially create a disastrous scenario for the policyholder, especially if he or she has a family to support.
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