Grace Period in Health Insurance

  • Author :
  • TATA AIG Team
  • Published on :
  • 31/10/2022

The cost of healthcare is increasing rapidly. One of the ways to ensure that you are financially secure if a medical emergency takes place is by purchasing a health insurance plan. A medical insurance plan covers the costs of your treatment, as mentioned in the policy and allows you to secure your hard-earned money.

While buying a health insurance plan is simple, you also need to ensure that you renew your health insurance plan before it expires. If the renewal due date passes, there is a grace period that the health insurance provides, during which you can renew your policy by paying the health insurance premium. In addition, the grace period in health insurance gives you time to renew the policy after the renewal date has passed. Thus, you can choose a policy that offers you a longer grace period so that you have enough time in case you are not able to renew the policy on the due date.

With Tata AIG, you can compare health insurance plans and choose the right plan for your needs. Then, you can renew the policy online in a few simple steps. You are also provided a grace period for health insurance renewal so that you can renew the policy after the due date has passed. But, it is essential that you renew your health insurance plan on time so that there are no hassles. Let us get into the details of the grace period in health insurance.

What is the Grace Period for a Health Insurance Policy?

The grace period is the extra time provided to you if you miss the renewal due date of your health insurance plan. Most health insurance plans come with a grace period.

How Does the Grace Period for Renewal of Health Insurance Work?

The grace period for a health insurance policy is a fair chance for you to make the premium payments if you are not able to do so because of some unfavourable circumstances. Most health insurance providers have a grace period ranging between 15 to 30 days. The duration of the health insurance grace period for payment might differ depending on the insurer and the medical insurance plan you have chosen. You can check the policy wording to understand the grace period provided by your insurance provider.

What are the Disadvantages of Non-Renewal of Policy On Time?

It is essential that you do not wait for the grace period to renew your medical insurance plan. You can renew your policy before the due date, which will help you stay covered. Here are the disadvantages of not renewing your policy on time:

  • Unavailability of coverage during the grace period

Insurers provide coverage to you in exchange for the premium you pay for the policy. If you do not pay the premium on time, the insurer is not liable to provide you with any coverage. Thus, the coverage benefits will not be available to you if you file a claim during the health policy renewal grace period.

  • Denial of renewal

The insurer can deny the health insurance plan renewal if it has lapsed. As a result, you might have to purchase a new medical insurance plan for which you may have to pay an extra premium, and also, you will lose all the accumulated benefits, like the no-claim bonus.

  • The waiting period will restart

If you do not renew your policy on time, your health insurance policy will lapse. Once the policy has lapsed after the health policy renewal grace period, you will have to buy a new health insurance plan. The waiting period for any illness will restart all over again, and you will lose any waiting period that has already passed.

  • The wait for coverage of pre-existing diseases will increase

If the grace period for a health insurance policy is over and the policy has lapsed, the new health insurance plan will come with a waiting period for pre-existing diseases. Thus, you will have to wait for a longer time to file any claim for pre-existing disease. You will get coverage for pre-existing illnesses only after the waiting period, as stated in the new medical insurance.

  • Higher premium during health policy renewal in the grace period

Some insurance companies might charge you a higher premium if you miss the due date and renew your policy during the grace period. If the policyholder has a history of missing their due dates, the insurer might charge higher premiums at the time of renewal.

What Happens if You Do Not Renew Your Policy During the Grace Period?

If you do not pay the premiums during the grace period for health insurance renewal, the policy will lapse. So, you will not be able to get any benefits of the coverage in case there is a medical emergency or if you have to undergo hospitalisation.

If your health insurance plan has lapsed, you can buy a policy from another provider. But, you might be refused health insurance coverage in case your past records showcase a history of missing the policy renewal due dates.

Moreover, you might have to undergo a medical screening to get a new health insurance plan. But, again, this increases the chances of you having to pay a higher premium or being denied coverage.

Conclusion

Paying your health insurance premiums on time is essential to ensure that you have coverage when you need it. The grace period in health insurance ensures you get extra time to pay the premium in case you do not do so because of some unforeseen events. If you do not renew your policy during the grace period, the health insurance policy will lapse, and you will be left without coverage. And without health insurance coverage, if there is a medical emergency, it might cost you a bomb. Thus, ensure you buy the right medical insurance plan and undertake timely renewal. With Tata AIG, you must visit the website to buy or renew your existing policy. Also, use our health insurance premium calculator if you have any questions about the premium that you need to pay.

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