Benefit Year

What Does Benefit Year Mean?

A benefit year is a one-year period during which an insurance policyholder can receive benefits from their insurance policy. Benefit years are commonly used in health insurance and unemployment insurance. For unemployment insurance, the benefit year typically begins on the date the claim is filed.

Insuranceopedia Explains Benefit Year

Receiving unemployment benefits during a benefit year can be a vital source of income for individuals who become unemployed. However, it is crucial for those receiving benefits to actively seek a new source of income within the benefit year. Failing to do so may leave them without income once their benefit year expires, potentially creating a difficult situation, especially if they have a family to support.