Health Insurance Plan Renewals
Whether you have a Mediclaim policy or a regular health insurance plan, every policy is active only for a pre-determined period (policy term). If you wish to keep the coverage intact and prevent the policy from lapsing, you are required to get the policy renewed just before the policy term runs out. That is when the grace period of a health insurance plan comes into play. There are several situations where your premium payment might be delayed, or you are unable to meet the deadlines of the policy term. Instead of the policy lapsing on the final day of the term, health insurance companies offer patrons a grace period in which they can ensure their policy is renewed.
What is the Grace Period?
The grace period for a health insurance plan is defined as a pre-decided amount of time after the date when the premium for renewal is due. During the grace period, a policyholder has the freedom to make their premium payment without them losing coverage or their policy lapsing. The policyholder is still covered under their policy during the grace period.
Renewing Your Health Insurance Plans During the Grace Period
Different health insurance companies may offer different grace periods, based on the type of policy you are covered under. The amount of time that is granted under your health insurance plan will be indicated in your insurance policy contract and can vary anywhere from 24 hours to 30 days. What you should remember however is that paying after the due date may incur a financial penalty from your insurer.
Main Features of the Grace Period in a Health Insurance Plan
A grace period is put in place in a health insurance plan to protect a policyholder from the risk of immediately losing coverage in case any delay or situation makes causes them to get late in a premium payment.
- Many health insurance companies offer smaller grace periods to mitigate their risk of liabilities. However, 15- and 30-day grace periods are the most common.
- You are still eligible for coverage if the due date for premium payment has passed but the grace period is in effect.
- If the policy is canceled due to non-payment, you will have to go through the policy application process all over again.
- If you manage to pay the premium within the grace period, you will not lose your No Claim Bonus, if any.
- If you are going through the waiting period for maternity coverage, pre-existing disease coverage, etc., in case your policy lapses, you will lose all the progress you made and will have to go through the waiting period all over again. However, if you pay during the grace period, your waiting period progress will remain intact.
In order to avail of the complete benefits of your health insurance plan, it is very important that you make your premium payments on time. Getting a new policy with a pre-existing condition or at higher age is not the easiest, so even if you miss out on your premium payment, ensure you are aware of the grace period for your policy, so you can avoid a policy lapse.
Care Health Insurance (Formerly Religare Health Insurance) offers comprehensive and highly affordable health insurance plans with a 30-day grace period and easy payment methods to help ensure you remain covered without any hassles.