The day and age we live in requires us to be prepared for any contingencies concerning our health. If we have learned anything in the last two years of the pandemic, it is that anything can happen at any time, and if a person is not prepared for the worst, they will feel the brunt of a bad situation. This has made people understand the value of a health insurance policy. Medical insurance in India is now more popular than ever. However, the thing we need to be mindful of where health insurance plans are concerned is that they expire. It is not a one-and-done purchase. The insured must keep track of their health insurance policy and renew it in time to ensure that they are not without protection in their time of need. This becomes even more important when you have critical illness insurance.
However, human beings are prone to forgetting things, even when it is as important as renewing their critical illness insurance. Thus, all insurance providers offer a grace period for a health insurance policy.
What is the Health Insurance Grace Period?
The grace period is the amount of time an insured person has to settle the payment for a health insurance plan that covers them, despite the lapse of the due date. The insured typically has 15 days beyond the due date to pay the renewal amount, according to the insurance company policy. However, some insurance providers include a 30-day grace period for this purpose.
Suppose the policyholder cannot settle the payment within the grace period and wishes to pay the premium later, the insurance provider holds the right to decline payment and not renew the policy. If this happens, the insured loses their benefits and must purchase a new policy. People who know the difficulty of staying without medical insurance in India prefer not to let their policy lapse.
What Happens if Health Insurance is Not Renewed Within the Policy Period?
The waiting period will only be completed if the insurance has been continuously renewed (without a gap). The waiting period would begin over again from the date of renewal if you renewed the insurance after the grace period expired, which means the policyholder will be required to wait considerably longer to access the insurance benefits. The benefit to the policyholder of renewing during the grace period is that, even if there is an interruption in coverage, the renewal will be counted as a continual renewal to determine when the waiting period has ended. However, if the grace period lapses, so will all the policy’s benefits. Also, you cannot make claims during the grace period.
Effects of Not Renewing a Health Insurance Policy on Time?
Everyone who understands the importance of health insurance understands why renewing it on time is important. However, if you are doubtful about it, here are a few things that would happen if you forget to renew your insurance within the grace period.
- There is a waiting period in order to receive treatment for some critical conditions, such as cancer and heart surgery. Some insurance providers, though, might withdraw the inclusion. Unfortunately, it means you will need to sit out the waiting period once again before you can enjoy the benefits of the policy.
- All insurance providers offer you something called a No Claim Bonus. This means you get a discount for every year you do not make a claim. If this amount accumulates, you can get a discount of up to 50%, which is a huge discount on your insurance. If your policy lapses, you lose out on your No Claim Bonus accumulated over the years.
- Because you haven’t paid your premium, your coverage is worthless until you do, and any claims made during that time are invalid.
- If you do not renew your policy in time, you will need to purchase a new one, which will demand more time and resources.
Now that we know what happens when we forget to renew our policy in time, we must be more careful with the dates and not let it lapse. However, even if you are a little late, remember to renew your policy within the grace period to avoid difficulties.