Health Insurance Plans have a definite duration to them. You need to be aware about getting them renewed timely to avoid any lapse by paying the premiums well in advance. If you fail to honour such payments in advance, you are left uninsured. The renewal premiums should be paid before the due date to avail continued coverage for your medical insurance. Non-renewal of such medical insurance leads to a lapse. No amount is paid when a claim against such lapsed policy is made.
What is Grace Period?
First and foremost, you should pay the required amount of premium for your critical illness insurance or medical insurance using a health insurance premium calculator or as specified in the policy document. The second step is to check for the grace period as provided by your insurer. Grace period are extra days post the due date ranging from a duration of seven to thirty days that allows payment of premiums. It may vary according to each insurer and you should be aware about such grace duration for your health insurance plans.
A crucial point that you need to keep in mind during the grace period is that no claim can be made during such duration of grace days. Your medical insurance needs to be active and covering the insured to avail any monetary and non-monetary benefit.
Let us have a look what happens when health insurance plans lapse –
- Loss of medical insurance cover during the interim period. The ever increasing healthcare costs can make you feel the pinch if such an unfortunate event occurs.
- You must be aware about the porting option available to you during the tenure of your policy. Such a lapse in health insurance plans affect the portability of your medical insurance or critical illness insurance to a different insurer of your choice.
- The waiting period for ailments listed in your health insurance plans get reset, meaning, you have to wait for the said period 18/24/36 months as the case may be for your health benefits to accrue depending on your insurer. You can compare health insurance before buying them to know the different waiting durations for specific ailments.
- Any benefits like no claim bonus accrued on your policy for claim free years is lost due to the lapse of your medical insurance policy.
- Some insurers allow lifelong coverage facility to your health insurance plans if renewed consistently without any defaults. Non-renewal within the grace duration may cause you to lose your policy benefit.
You can ensure that you don’t end up missing on renewing your medical insurance by setting up email reminders and updating your contact information with your insurer. Alternatively, auto debit to your account can be permitted for seamless renewals. Always remember to compare health insurance before buying one and stay away from the hassle of lapses and missed due dates.