Health Insurance Renewal Date Missed? This Post is for You
Published On Apr 15, 2019 5:30 AM By Yamini Sharma
Health insurance, as a concept is quite vast. It covers numerous elements that in their very own way play a significant role in making health insurance the boon it is.
When looking for a health insurance plan, you must have come across a series of terms such as insurer, policyholder, claim, co-payment, deductible, cumulative bonus and numerous others. Needless to say, each term is important to understand so that you can comprehend health insurance inside out and keep confusion at bay.
Out of all the terms, there’s one that you need to be aware of at all times. It’s Policy Renewal Date!
That said, let’s shed light on health insurance renewal in the first place.
Health Insurance Renewal
The concept of health insurance policy renewal is quite important so that the insured individual can reap health insurance policy benefits without any hassle. It is vital to renew health insurance at the end of every policy year, so that insurance coverage remains active on a constant basis. As far as the health insurance renewal process is concerned, note that it is not that complex.
What is Health Insurance Renewal Date?
The health insurance renewal date is the date on which the policy must be renewed. A prominent date to keep in mind, health insurance renewal date, if missed can lead one to inconvenience. How? Let’s find out!
When a policyholder fails to pay the health insurance policy renewal premium on time, they are uninsured again by the insurance company. In other words, the insurance company takes back the health insurance coverage that it has provided. Therefore, it is important to pay the health insurance policy renewal premium before the policy renewal date to keep the existing coverage intact or functioning well.
Remember, POLICY RENEWAL IS AS IMPORTANT AS BUYING A POLICY AND FILING FOR CLAIMS!
What to Do if You Miss the Health Insurance Renewal Date?
Missed renewing your health insurance policy on the desired date? Don’t worry!
Even if the policy expiry date has gone by, you can make a payment as many insurance companies provide a grace period as an extension.
Note that generally, in insurance companies the grace period is of 15 or 30 days. However, it may differ if the companies decides so.
That being said, learn that if you fail to pay the renewal premium even after the grace period (15, 30 or more days depending on the company), your policy will get lapsed by all means.
Consequence of a Health Insurance Policy Lapse
- If, owing to your negligence, your health insurance policy gets lapsed, there’s nothing you would be able to do to revive it. You will have no option, but to purchase a new health insurance policy.
- In case, you have earned any bonuses such as no claim bonus on the policy previously owned, it will be taken back and the coverage will start from the initial level.
- Other than no access to no claim bonus, there will be constraints on the waiting period. Only once the designated waiting period has passed, you will be able to avail certain benefits under the plan. In case of lapsed policy, you will have to serve the waiting period all over again after the purchase of a new policy. Moreover, in case of an emergency during the waiting period of the new policy, you will have to spend from your pocket.
- When it comes to cover for pre-existing disease, you will have to wait for two or four years to avail the cover for pre-existing illness. In case of a lapsed policy, on purchase of a new one, the same waiting period will count to be eligible for coverage on pre-existing diseases.
- In case the policy gets lapsed, the policyholder loses bonus benefits such as the added bonus that one gets as an addition to the coverage amount after every claim year.
The Possibility of Reviving a Lapsed Policy?
Those who miss paying the premium on time can revive their health insurance policy. Yes, it is feasible, but there are conditions behind it!
Firstly, revival is possible if you agree to pay the outstanding premium with interest. The other way is by undergoing one or more health check-ups.
Let’s uncover more in detail.
Regular Revival - You can go for this option if you want to revive your health insurance policy within six months from the date of policy lapse. This way won’t require you to undergo any sort of health check-up, however, you will have to pay the outstanding premium along with the interest. Note that the amount of interest will depend on the date when your insurance policy became active.
Revival Based on Non-Medical Grounds - It is important for you to know that reviving your policy on non-medical grounds, will result in an amount less than the promised limit of non-medical assurance, which was initially purchased by you.
Revival Based on Medical Grounds - You can choose to avail revival on medical grounds only if you fail in ordinary and revival based on non-medical grounds. The amount to be revived under this option will be decided only when you undergo the medical test.
Making a choice between the options mentioned above may seem confusing. However, you can always ask the insurance agent and find the perfect way to revive the policy.
Nonetheless, here’s something you need to learn to prevent the inconvenience in the first place.
How You Can Avoid Lapse of Your Health Insurance Policy?
The list of tips includes:
- Keeping track of the dates, setting reminders, marking in the calendar and trying other ways which can help you remember the renewal date.
- Availing the ECS or Electronic Clearing Service facility, which allows the deduction of the premium by the policyholder’s bank at a pre-set date and transfer to the health insurer.
- Going for the option of paying premium through the ATM of the banks linked with insurance companies for the convenience of the policyholders.
- Receiving reminders from insurers shortly before the deadline so that you can make payments to avoid inconvenience later.
- Choosing to receive payment reminders by means of SMS or email.
You must have got all the answers by now!
Go ahead and choose the plan of action that suits your situation the most and make sure you do not forget paying the renewal premium the next time.
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