How Can I Renew My Health Insurance Policy If Premium Payment Due Date Is Missed?

In health insurance, a grace period is the amount of time or number of days that an insured has to pay the premium for the health insurance policy under which he or she is covered. Even after the deadline has passed. Typically, insurance firms provide the insured a 15-day grace period beyond the due date to pay the renewal payment. However, some insurance providers include a 30-day grace period for the same.

If the insured cannot pay the health insurance premium within the grace period, the insurance company has the authority to deny the health insurance renewal application, even if the client wishes to pay the payment at that time. It's also worth noting that during the grace period, the insured cannot get coverage benefits. In addition, the grace period for some specified conditions, as mentioned in the policy agreement, will be reset, necessitating timely payment of the health insurance premium. To know more about the grace period of health insurance, read on.

What Does A Grace Period In Health Insurance Works?

It is critical to pay all due health insurance payments within the grace period in order to continue receiving coverage benefits under your health insurance policy. Insurance firms provide a grace period so that the insured does not fail to pay the premium even if they forget the due date. For example, suppose your health insurance coverage ended on August 10, 2020, and you failed to pay the payment on time. The insurance provider will then give you a 15-day grace period to pay your payment. As a result, the extended due date will be August 25, 2020, which will be the final day to pay the premium and continue to get coverage benefits.

If you are unable to pay your health insurance premium during the grace period and the policy lapses, you will forfeit any accrued benefits, such as the No Claim Bonus and waiting period benefits. If you acquire a new health insurance coverage, they will become worthless and you will have to earn them again.

How To Revive/Renew Expired Health Insurance Policy?

There are two possibilities. One is if you have not paid your premium by the due date, and the other is if you have not paid your premium by the grace period. To be able to resuscitate the policy in the first situation, you must pay the appropriate premium, as well as some interest and penalties, within the time frame specified. However, if you wish to renew an expired health insurance coverage that still has a grace period, you have two options: online or offline. You must call your insurance carrier to complete the offline process.

What Happens If Someone Misses The Grace Period In Health Insurance?

If you do not pay your health insurance premium within the grace period, your policy may be terminated, and all collected benefits, such as waiting period benefits and No Claim Bonus, would be forfeited. Even if you have a medical emergency within this time, you will not be able to file a claim for it. As a result, you will have to pay for the charges out of your own money.

In this scenario, you can get new health insurance coverage from a different provider. Given your history of not paying health insurance payments on time, there's a potential that another business may reject your insurance coverage as well. Some insurance firms may also require you to undertake a pre-medical exam before issuing a policy if you have an expired coverage. It raises the odds of being denied coverage or paying a higher premium.

Endnotes

Health insurance firms provide customers with premium payment extensions to guarantee that coverage is maintained even if the premium is paid late. Policyholders can still make a claim if a medical emergency occurs during this time. However, if you miss the renewal deadline, the insurance provider may refuse to cover you owing to non-payment of premiums. In this instance, even if you pay the payment the next day, you will not be eligible for any coverage benefits.

Also read - What Are The Benefits Of Long Term Health Insurance?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.