Health insurance policies are like a safety valve against unforeseen health problems. It usually comes with a fixed tenure. Insured members must make the annual payment of premium to revive it. If members miss the due date for premium payment, the insurance benefits are detained. Buying a fresh plan can be harrowing and one will also lose any no-claim bonus. Thus, one must stay vigilant and renew their health insurance plan on time. People thus opt for plans that offer extended duration by paying the premium once in 2 or 3 years.
Nevertheless, follow these guidelines when you go- “What if my health insurance lapses?”
• Grace Period for health insurance: A grace period for health insurance is granted to make the payment. The grace period usually varies between 15-30 days from the date you missed your payment. One can retain their policy without the need for a new plan if renewal payment is made within the grace period. Payment within the grace period for health insurance ensures the continued benefits of no-claim bonus.
A critical point is that grace period only buys you the time to revive a lapsed policy. It does not provide any coverage against risks if anything goes downhill in those 15 days. Thus, pay the renewal premium immediately and revive your existing health insurance plan.
• Purchase a new health insurance plan: Buying a new plan is the other alternative. This happens if one fails to act even during the grace period for health insurance. It is best to avoid lapses at all costs as the alternate scenario has shortcomings. There will be no medical coverage, inaccessibility to no-claim bonus and extended waiting period.
One can re-purchase their former lapsed plan from the concerned insurance company. If it has been more than 6 months since the plan lapsed, one has to pay the premium. Then they have to undergo a pre-medical check-up. One can also find better alternatives for their former plan, tailored to their needs.
• Precautionary measures for the future: Grace period for health insurance is the golden time offered to rectify your negligence. Set digital reminders and spare yourself the thought of - what if my health insurance lapses? opt for ECS that will automatically deduct the premium from your account. This also eliminates the need for any extra effort from time to time. Several insurance companies have linked up with banks to make the process of payment easier.
Choose an insurance company that is efficient and proactive. They send reminders through emails and messages to ping you about the approaching due date. The important point here is that make health your first priority today. Then everything tied to it will never go out of your mind.
On missing the due date, the faster you act the better it is for you. Once the grace period is over, there is no going back to your existing health insurance plan. Buying a new plan can be a harrowing experience but the only option after your plan lapses. Thus, pay on time, act on time and avoid wastage of time in the long run.