Learn Everything About Grace Period In Health Insurance
Updated On May 23, 2022
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Most health insurance plans are good for one year and must be renewed for another year at the conclusion of the policy period. Those who fail to renew their mediclaim or health insurance policy on time are given a second opportunity, which is known as a grace period for the renewal of health insurance. So, the mediclaim renewal grace period is the additional time policyholders have to pay the payment and continue to enjoy the advantages of their health insurance coverage without interruption.
The grace period for renewing health insurance normally ranges from a week to 30 days. The grace period for health insurance coverage is a lifeline that must be utilised. If you do not pay the premium during the grace period, your insurance will expire, and you will lose all benefits as well as any privileges or loyalty points you may have acquired over time.
How Does a Health Insurance Grace Period Work?
To continue receiving benefits under your health insurance policy, you must pay all outstanding health insurance premiums within the grace period. Insurance firms provide a grace period so that the insured does not lose out on paying the premium even if they forget the due date. For example, suppose your health insurance coverage expires on August 10, 2020, and you missed the payment deadline. The insurance provider will then give you a 15-day grace period to pay your payment. As a result, the extended due date will be August 25, 2020, which is the final date to pay the premium in order to continue receiving coverage benefits.
If you are unable to pay your health insurance premiums, even during the grace period, and your policy fails, you will forfeit any collected benefits such as the No Claim Bonus and waiting period benefits. If you get a new health insurance coverage, they will become worthless and you will have to earn them again.
How Can You Renew Your Health Insurance Plans During Grace Period?
Grace periods for renewing health insurance policies vary depending on the kind of coverage and the insurance provider. This might last anywhere from 24 to 30 days. The grace period for renewing your health insurance plan may be found in the terms and conditions. In addition, paying the payment during the grace period may result in a penalty from your insurance carrier. This is due to the non-payment of the premium by the due date. To prevent losing coverage, you can renew your health insurance plan during the grace period.
Health insurance companies make certain that you have adequate time to pay your renewal payment. They accomplish this by providing a grace period from the due date. Even if you pay late, within the grace period, you retain the advantages of the policy, such as the waiting period, medical check-ups, inclusion of pre-existing conditions, NCB, and so on. However, if the insurance provider does not provide a grace period on the policy, the health insurance coverage would lapse since you missed the deadline or due date. In such a circumstance, you will be unable to file a mediclaim and get hospitalisation under the coverage. This is especially important in the event of an unexpected hospitalisation, such as an accident.