No, the waiting period for a health condition will not be affected by the cancellation of your health insurance policy. So, when you buy a new health policy, you can start from where you left off. For example, if you have a health condition that has a 3-year waiting period and you have already served two years; then, if you terminate a health policy and buy a new one, you only have to serve one year. After that you can receive coverage for the said condition.