Many people in India do not have appropriate health insurance taken. One of the many reasons behind this is, they do not understand the technical terms mentioned in the policy. Hence, they either avoid seeking health insurance plans or choose the wrong policy for themselves and their family members.
However, with ever-increasing lifestyle-related diseases across the country along with the rise of medical expenses, having health insurance has become all the more essential. But before you go and buy a Bajaj Allianz health insurance online, make sure that you understand the terminologies and the conditions in the policy.
In this article, we will be explicitly discussing the ‘grace period’ in health insurance. Even though you might be familiar with the term, many of you are still confused. Let us first understand what the grace period in a health insurance policy is.
What Is A Grace Period?
A grace period in health insurance is nothing but the number of days you receive to make the chosen health plan’s premium payment after the set date has passed. During this time, you must make the premium payment so that your health insurance does not expire. However, if you fail to pay the premium amount within the stated grace period, the health place will terminate.
According to the regulations imposed, health insurance providers offer 15 days of grace period to their clients. During these 15 days, you have to pay the health insurance premium for renewal purposes. Moreover, certain health insurance providers offer a grace period of one month as well.
In simple words, the grace period is several days after the renewal premium due date has passed. For instance, if your premium payment was due October 1, 2019, you will have time until October 15, 2019, to make the necessary payment. Failing to do so will lead to policy expiration or refusal of insurance policy renewal.
What Happens If You Do Not Make The Renewal Payment On Time?
There are several downsides that you may have to face in case you fail to make necessary payments on time –
- Your Policy Will Not Be Renewed: After the payment due date has passed, your insurance provider offers a grace period within which you have to make the said payment. In case you fail to do so, the provider has the right to cancel your policy’s renewal process. When that happens, you will have to seek a new health insurance plan – which could lead to the loss of several benefits you may have earned on your policy.
- No Coverage Benefits: If you fail to make the payment on time, you will be defied from using the benefits if you try claiming during the grace period.
- The Pre-Existing Coverage Period Will Change: If the policy is canceled after the end of the grace period, you will have to apply for a new health insurance policy. Moreover, any existing illness will be treated as a pre-existing medical condition for the new health plan. You will again have to go through the waiting period, and the entire period of your coverage will change. Also, you lose the continuity benefits.
Hence, to continue benefiting from your cashless health insurance plan, it is essential to renew premium payments on time or at least within the grace period. The grace period in health insurance is thus provided for your convenience and comfort in making the payments. You should ensure timely renewal of health insurance policy to avail health insurance benefits.