A health insurance policy is usually valid for a year, and you need to renew it for one more year towards the end of the period. Now, the insurance companies offer one more chance to those who don’t renew the policy in time. This is known as the grace period to renew the insurance.
The grace period for a Health Insurance Policy is the additional time that the policyholders receive to pay the insurance premium to keep enjoying the insurance coverage minus a break. The grace period usually ranges from seven to thirty days, depending on the insurance company.
Given below are the privileges you lose by failing to renew the policy within the grace period.
You’re Left Without a Cover
The most significant disadvantage of failing to renew the policy during the grace period is that you’re left without a cover. Your lapsed policy doesn’t offer any insurance coverage. You can get a new policy, but even that will take quite a few days. Considering the costs of hospitalization and medical treatments, it isn’t wise to stay without health insurance, even for a day.
You’ll Lose the No-claim Bonus Benefit
A no-claim bonus is one of the best features of health insurance plans. It’s the incentive you get from the insurance company to not make any claims in a year. As a result of this, you either pay a discounted premium or get a cumulative bonus on the best health insurance plan.
A cumulative bonus increases the coverage for the upcoming year while keeping the premium the same.
The Policy Loses Its Portability
Health insurance in India is portable, i.e., you can port the plan to a new insurer before it lapses. However, porting is only possible at least sixty days before the expiry date of a policy.
Your New Policy Will Be Costly
As health insurance costs keep on rising, a new plan will be costlier than the previous one you had. So, if you want to avail the best health insurance policy at an affordable price, make sure not to fail the grace period.
The Long Waiting Period
India’s best health insurance plans have a waiting period of around one – two years, applicable to specific maternity benefits and health conditions. If you get a new Health Insurance Policy, you will have to wait longer before you get to use the facilities.
Losing The Lifelong Renewability Feature
Many health insurance plans come with the feature of lifelong renewability. You will lose this advantage if you let the plan lapse past the grace period.
Health emergencies do not come announced. So, remaining uninsured should never be an option. If you do not want to lose the multiple benefits of a health insurance plan, you must renew your health insurance policy from the best health insurance company in India.
The Bottom Line
The grace period for a Health Insurance policy is the additional time that the policyholders receive to pay the insurance premium to keep enjoying the insurance coverage minus a break. We hope that you’re now aware of all the consequences due to the failure of Renewing Health Insurance Within Grace Period.