What Is Grace Period In Health Insurance?
Updated On Aug 29, 2022
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Preferably buy health insurance with the longest grace period. This extends the deadline to renew your coverage. This will make sure that you can still catch up with the renewal after the deadline for the payment of your health insurance premium.
What is the Grace Period?
If you miss the deadline to renew your health insurance coverage, you get a grace period. Your mediclaim coverage might be cancelled or you could be charged costs if you don't pay during the grace period. Grace periods in health insurance are common.
How Does Grace Period Work?
Grace period provides you a chance to pay your health insurance premium if you can't on time. Most insurance companies offer you 15 days to pay renewal premiums. Others provide 30 days to pay.
Below are a few factors concerning the grace period:
- Grace periods vary by the insurance company and policy type. Not all health insurers give a grace period.
- A company's grace period may differ from another's. This can happen. Check with your insurance provider or policy to see whether there is a grace period and how long it is.
Is a Grace period the Same as a Waiting Period When it Comes to Health Insurance?
This is a common doubt whether the grace period is the same as the waiting period.
No, your health insurance grace period is not your waiting period. Before filing a health insurance claim for a condition or operation, you must real all about the waiting period. clause.
How Can Grace Periods Affect Your Claims?
If you pay your payment late, health insurance providers give you a grace period. After paying the renewal price, you can still submit a claim during the grace period.
If there's no grace period, your insurer can cancel your coverage if you don't pay on time. Even after paying, you can't submit a claim.
If you didn't pay for your coverage during the grace period and had a health emergency, you won't be covered. Your health insurance will be cancelled for non-payment after the grace period.
Even if you pay the renewal price, insurance won't cover you until treatment is completed. In this situation, you must acquire a new, expensive health insurance plan with additional regulations and waiting periods.
Failure to Pay the Premium During the Grace Period
If you don't pay your health insurance premium within the grace period, your policy could be cancelled for not being paid. If you do that, you won't be able to use your coverage if you get sick or need to go to the hospital.
You can also buy a health plan from a different insurance company. But in the worst case, you might not be able to get insurance from other companies if you have missed policy deadlines in the past.
Also, if your previous policy had ended, some health insurance companies would want you to go through a pre-medical screening before giving you a new policy. This makes it more likely that you won't get coverage or that you'll have to pay more for a new policy.
Conclusion
If you don't pay your health insurance premium on time or within the grace period, it might be expensive. If you already have a health concern, you'll have to start the waiting period anew. So, pay your health insurance renewal payment on time to maintain your benefits and not jeopardise them. Even if there's a grace period, only pay in an emergency.
Also read: How to Pay Your Reliance Health Insurance Premium Online?
