If you fail to pay the premium of your health insurance plan, the coverage provided to you and your family will be taken back. Read this article to find out how you can keep such a scenario from arising.
Health insurance plans are critical. A comprehensive health insurance plan provides adequate cover for a fixed tenure. In case of an accident or illness, all expenses incurred on medical treatment and hospitalization are covered by your health insurance plan. The health cover is dependent on the premium amount. Premium is the cost of cover which is to be paid on an annual basis. You are required to pay the renewal premium before the due date in order to continue the policy cover. For example, if your policy expiry date is 5th February 2020, you need to pay the renewal premium amount before 5th February 2020 to ensure that your health insurance policy is in force. Every policy comes with a grace period (15 days or 30 days).
Grace period is the time extended for making the premium payment post the due date. This includes working as well as non-working days. If you fail to make the renewal payment within the grace period, then your health insurance plan will get lapsed.
What happens to a Lapsed Policy?
In case your policy has lapsed, you will face the following consequences:
- There is no health insurance coverage provided by a lapsed policy. Your hospitalization bills will not be reimbursed.
- A lapse policy cannot be ported to another insurer. You are required to port 45 to 60 days before the policy expiry date and not after the expiry of the policy period.
- If the policy is not renewed during the grace period, you will lose the renewal benefits of your existing health insurance plan.
- If your policy has lapsed, you will lose the continuity benefits of the waiting period on pre-existing diseases.
- Lifelong renewability is allowed only if the policy is renewed without a break. In case you are a senior citizen and the policy is not renewed within the grace period, you may face difficulty getting a health insurance plan.
- The accumulated no claim bonus would not be applicable if the policy is not renewed on time.
Many insurance companies provide the facility of reviving a policy. Usually, if not more than six months have passed since your health insurance renewal date, you should be able to revive it simply by paying the outstanding premium with interest.
Steps to Prevent your Policy from Lapsing
- Keep a track of the due date. You can set reminders in your calendar or smartphone 15-30 days before the due date.
- You can also opt for automatic ECS. ECS will automatically deduct the premium amount from your registered bank account on the due date.
- You can ask your insurer for an auto renewal facility.
- Many insurance companies have tied up with banks to provide premium payment services through ATMs. You can visit any of these ATMs and pay the premium amount.
A health insurance policy is very important for you and your family. It is advisable to renew your policy by the due date in order to avoid any lapses.
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