Imagine a situation where you need to be hospitalised and a family member informs you that your health insurance policy was not renewed. Sounds scary, doesn’t it? A health plan not only protects your finances, but also allows you to get the best medical treatment available, and therefore, it’s crucial that the policy be renewed on time. However, if you miss the deadline to renew it, there is a grace period during which you can pay the premium and save your policy from expiring and save the benefits it offers. Let’s discuss more about this grace period in detail.
Any insurance plan, be it health or Mediclaim insurance, is active only for a specified time period. You need to renew it before the time period, that is, before the policy lapses, so that you stay covered. However, if for some reason, the premium is not paid on time, your insurance provider will extend the deadline for the renewal of your policy. This extended period is called grace period and during this period, you will continue to enjoy the benefits of coverage. Usually, insurers offer a grace period of 15-30 days. If you fail to pay the premium within the grace period, the policy will be considered null and void.
A grace period is offered by the insurance provider to protect you from immediately losing the coverage for failing to renew the policy before its expiry. Here are some features of the grace period:
The grace period usually depends on the type of health or Mediclaim insurance policy and the insurance provider, but it can be anywhere between 15 days and one month. You should check the terms and conditions of your plan. Some insurers may charge a penalty for renewal of plan during the grace period. If you miss the first due date, don’t miss the second one, that is, grace period, otherwise your policy will become inactive.
Financial protection during a medical emergency is the main reason why you buy a health or Mediclaim insurance plan and so it needs to be renewed before due date. If you don’t, you cannot avail the benefits of the policy coverage. Any claims during this period may also be difficult to settle.
If the premium is not paid before the due date, the insurance provider has the right not to renew the policy. In such a case, the policyholder will need to buy a new plan and go through the entire process again apart from losing the coverage benefits.
After your policy lapses, you need to buy a new policy and the waiting period for pre-existing and other specific diseases will have to restart. This means that the wait only gets longer. Pre-existing diseases will get covered only after the waiting period is over.
If you forget to renew your Mediclaim insurance policy and a medical emergency crops up immediately after the due date, can you raise a claim for the mounting medical bills? Yes, you can, because of the grace period. Insurance providers offer a grace period or an extended period to let you pay the premium even after the due date. A grace period, thus, comes as a saving grace, so that there’s no break in coverage and you continue to enjoy the benefits such as medical check-ups, waiting periods, coverage of pre-existing diseases, NCB discounts, etc.
So, to reiterate, a health or Mediclaim insurance planprovides financial protection to meet your medical expenses. The plan stays active for a specified time periodafter which you need to pay a premium. Timely payment of premiums will ensure you are financially secured and if you miss out on the premium date, insurers give a grace period. But missing the grace period will lead to a lapsed policy and you need to go for a new one.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
