Research from Policybazaar.com showed that in fiscal year 2021-22, 85% of their customers renewed their floating family policies and 80% renewed their individual health policies, on time. In addition, 60% have chosen to strengthen their coverage with passengers.
Health insurance extends its coverage to medical costs, such as hospitalization costs, medication, pre- and post-hospitalization costs, consultation costs, etc. With the rising cost of health care, health insurance is seeing a surge in sales.
What if the premium due date for the health insurance policy is not met?
If you miss the policy renewal date, you are not insured because your existing policy has expired. This means that your health insurance company will stop providing you with medical coverage and you will no longer be able to claim medical expenses. However, for renewal, you will have a grace period to revive your policy.
Grace period :
Insurance companies provide a grace period during which you can still make the payment and continue your health insurance coverage. The grace period differs from insurer to insurer and plan to plan. Most insurance companies allow up to 30 days grace period. So, open your policy document and check the grace period offered by your health insurance company. Most insurance companies do not settle claims raised during the grace period when the premium is not paid.
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Renewal of the health insurance policy within a grace period:
You can renew your health insurance policy within a grace period online as well as offline. For offline renewal, you will need to visit the nearest insurer branch with your policy document and make payment. Or, you can visit the insurer’s official website, log into your online account and make the payment. In either case, you will receive a renewed policy within a time frame specified by the insurer. If you do not receive the policy document within a reasonable time, you should contact the insurer’s customer service department.
Relaunch of the policy:
When the premium is not paid even within the grace period, the health insurance policy lapses. Lapsed policies are usually terminated by insurance companies. However, some insurers may allow expired policies to be reinstated within a specified time frame.
Typically, health insurance companies offer a six-month period to revive expired policies. However, insurers will charge you late payment penalties and interest. Also, reviving expired health insurance policies can be done either for medical or non-medical reasons.