Having a health insurance policy keeps your mind free from worries related to medical expenses and their impact on savings. However, you should ensure that you renew your policy on time and pay premium regularly. It is required to prevent health insurance coverage lapse.
If your policy has lapsed, then you will no longer be eligible to avail of the policy benefits. So, do not allow yourself to get into this situation. You can avoid it by choosing to renew health insurance online, which is easy and convenient. However, if due to some reason, you missed renewing your policy on time, and as a result, it got lapsed, then do not worry. There is a grace period of 15 days available, and you can renew your policy within this period by paying the renewal premium.
To help you in a scenario where your health insurance policy lapses, here are a few essential things you should know.
What Happens If The Health Insurance Policy Lapses?
You might not want to imagine a situation where your health insurance policy lapses because it can cost you a lot. Firstly, you will lose the coverage benefits the policy was offering you. It includes the accumulated benefits under no claim bonus. Also, you would be deprived of the renewal benefits too.
You would have to buy a new health cover wherein the no claim bonus and waiting period will start all over again. The medical expenses for the specified illnesses will not be covered until the waiting period is over. It is a stressful situation to be in, given the fact medical treatments are expensive.
According to the Insurance Regulatory and Development Authority of India (IRDAI), the health insurer will not offer coverage for the period for which no premium is received.
Here’s What You Should Do
If your health policy lapsed, the first thing you should do is to pay the premium for health insurance policy renewal at the earliest. It will ensure that you continue to enjoy the coverage benefits in the existing policy.
To renew health insurance online, one should follow the below-given procedures:
- Contact the health insurer to raise a request for policy renewal
- Provide information like policy number, if any change in medical condition, etc.
- Pay the policy renewal through a digital mode
The revival of a lapsed policy is possible if you pay the premium during the grace period. If the grace period is over and you could not renew the policy, then you can opt for a new health insurance plan after evaluating your requirements.
Why is Timely Renewal of Health Policy Important?
It is crucial to remember that the claims made during the grace period between the expiry and renewal of the policy may not be considered. It implies that coverage will not be available to the policyholder during this period.
Furthermore, the lifelong renewability feature is applicable only if the policyholder renews the policy continuously. In case the person fails to renew the policy within the grace period, and it lapses, it becomes difficult to get the coverage.
If we consider these points, it becomes essential to renew the policy much before it expires.
Opting for a long term health insurance policy that has longer tenure will keep you worry-free as there will be no hassle of renewing it annually. Long term health plans are a viable option as you not only receive comprehensive coverage but also discounts on health insurance premium if you choose longer policy tenure. However, whether you have opted for a policy with tenure of one year, two years, or three years, it is vital to go for timely policy renewal. Remember to check the notifications your insurer sends for policy renewal.
It is vital to keep a reminder of the date when the policy expires. Nowadays, we can do that easily, thanks to smartphones. Although the grace period offers another chance to continue getting coverage under an existing policy, it is better not to wait till that time. Instead, one should renew the policy early. The renewal of a health insurance policy also gives you a chance to relook at your insurance needs and make suitable changes to ensure adequate coverage. By renewing your policy on time, you will continue to get the tax benefits on the premium under Section 80D of the Income Tax Act.
Choose the best health cover plans by visiting the website of Care Health Insurance (Formerly Religare Health Insurance). Care Health Insurance (Formerly Religare Health Insurance) Policy Renewal Process is hassle-free. You can renew your health insurance policy through a simple online procedure after you key in the relevant details.