Understanding Grace Period In Health Insurance
Updated On Nov 30, 2021
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A health insurance plan is one of the most important assets in anyone’s life. It promises a safe, secure and happy life for the policyholder as well as their family. However, it is not a one-time matter and the health insurance policy must be renewed, from time to time, to continue its cover.
What is the Grace Period?
All health insurance plans have a particular policy period. After this period is over, the insurance policy has to be renewed in order to continue its cover for a new period. The grace period is defined as the time that is given to the policyholder by the insurance company to renew their health insurance policies within. Post this period, the health insurance policy is either cancelled or you will have to pay penalties to revive it. Paying within the grace period has several advantages including discounts and bonuses such as the No Claim Bonus.
Most insurance providers offer a grace period of 15 days but it can be up to 30 days as well. Essentially, it depends on the insurance provider as well as the type of health insurance cover that you have purchased. It is best to ask your insurance provider or check on your policy documents to find the exact date of renewal and the grace period to avoid being misled by assumptions.
Must Read: Benefits of Buying Rs. 1 Crore Health Insurance Cover
What Happens if the Grace Period is Not Heeded?
Buying a health insurance plan just one time does not mean that you are insured for the rest of your life. In fact, if you do not heed the grace period and renew your insurance on time, there are several demerits. Take a look at them below.
1. New Waiting Period
The waiting period in a health insurance policy is the time during which your health insurance application is reviewed to see whether you will be insured under the health insurance plan. If you do not renew your health insurance plan on time, you might be subjected to a waiting period all over again, causing unnecessary hassle, especially if there is an emergency.
2. Pay Penalties
If you renew your health insurance policies, you might just be able to purchase it back, but not without penalties. The amount differs from one insurance provider to another, but might just be a hefty amount. It is quite avoidable if you only stay alert and renew your health insurance policy on time. Moreover, renewing on time can give you discounts, ultimately helping you save.
3. Denial of Renewal
If you do not renew your health insurance policy on time, your plan may be cancelled. Your insurance provider might refuse to renew it if it is after the grace period. In such cases, the only way is to buy a fresh health insurance plan. This will again bring with it, a fresh wave of procedures that you would need to go through since it will be completely new insurance.
Endnotes
Having the protection of a health insurance plan is important in today's world where there are a host of new illnesses cropping up every day. It also helps you avail of adequate treatment without burning a hole through your pocket. The only requirement is that the premiums are paid and the renewal is done on time. Your health insurance will then continue to serve you for a long period of time, without any hassle.
Also Read: Who Should Buy Rs. 1 Crore Health Insurance Cover?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
