5 min read
The responsibilities of a person increase, as years pass by and especially, it is more when you decide to start your own family. You have to consider the requirements of your partner and other dependents in a family, and while doing so, you need to put more effort into ensuring their financial needs are protected and taken care of during emergencies. A health insurance policy is the perfect solution that offers financial security to protect yourself and your family against medical emergencies. But in order for this security to continue for a longer period of time, it is essential for you to renew the health policy before its expiry date. But, if it expires, policyholders are given a ‘grace period,’ within which the policy has to be renewed.
In health insurance, the Grace period refers to the additional time offered by the insurance company after the due date to pay the necessary premium is elapsed. In the event of not paying the premiums within the grace period, the policy shall become inactive.
The timeframe for the grace period is clearly stated in the terms and conditions of the health insurance policy document, which you need to read while signing the documentation. Most insurers offer 15 and 30 days as a grace period. In many cases, non-payment of premium shall lead to cancellation of the grace period, which must be avoided at all costs as it is a useful feature and losing it will make the policy worthless.
To understand the health insurance grace period, let us look at an example: Your health insurance policy is set to expire on July 12, 2022, and you have forgotten to pay the insurance premium on time. The insurance company has offered a grace period of 15 days for making the renewal payment, taking the last date to July 27, 2022. If you make the premium payment by July 22, the policy shall become active again, and you shall continue to use all the benefits offered by the policy. If you do not make the payment by the above-given date, the policy shall become inactive, and you cannot make use of it for any claims.
Also Read: Health Insurance Portability
In the event of you not paying the premium on time, during your grace time, health insurance companies could charge a late charge, which must be paid along with the premium. But there are other disadvantages also, because of your inability to pay premiums at a timely time:
If you do not pay the premium during the grace period, the health insurance plan could be canceled due to the non-payment. Therefore, in the event of unexpected medical crisis that may occur in your life, you won’t be able to claim the benefits of coverage. Therefore, if you are hospitalized, it is your responsibility to pay for the expenses from your pocket. Also, the insurance company could also terminate your claim requests if you have raised any due to non-payment of premium.
If you wish to take advantage of the benefits of your chosen health insurance plan and you want to avail the benefits, you should make the premium payments regularly. It isn’t easy to obtain a new insurance policy that covers pre-existing conditions or opt for a health insurance policy at a later age. Therefore, if you do not pay your premium payment on the due date, it is your responsibility to make payment within this grace period.
It’s not wise to be without health insurance, even for an hour, especially during the current times. In case you’re not happy with the services or benefits offered in your current health insurance company, you have the option to change insurers without losing any benefits or bonuses or privileges that you have earned from your current plan policy. But that has to be done before the expiry of the existing policy or before the grace period ends.
Also Read: Types of health insurance policies in India
PayBima is your best online companion to search, select and buy the right insurance policy that suits your requirements. You can also get to know the features of the policy, compare and then finalize the plans that match your budget. Their dedicated customer support team will help you in shortlisting the perfect plan while also answering questions related to policies, including grace period and premium quotes.
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