How to Renew Your Health Insurance If You Miss Premium Due Date

Posted on: Jan 31, 2022 | | Written by:

How to Renew Your Health Insurance If You Miss Premium Due Date

Published on February 12, 2022. EST READ TIME: 3 minutes

Renew Health Insurance - Health insurance

Life is never certain, and if you are not prepared for the usual curveballs, you might end up draining all your savings. Which is why, health insurance is critical, especially in the light of the pandemic, when an illness can quickly turn serious and require extensive treatment. A good health insurance plan will cover your costs and help you to get treated at the best facility without worrying about expenditure. So, you must ensure that your insurance cover is updated and active at any given point of time. But sometimes, you might forget to pay your premium on time. In such a situation, what can you do? Find out right here.

What to do if you miss premium payment date

• Grace period:

The first thing to look for is the grace period that is given to you to pay the premium if the due date has passed. Typically, you have 15 days’ time as grace period. During these 15 days, you can still pay the premium and renew the policy. However, you cannot file claims for treatment during these 15 days. Remember that this grace period may include both working and non-working days, so be careful when you calculate the last date of your grace period.

There are three main points to remember about waiting until grace period:

• All insurers have their own grace periods, extending from 7 to 15 days, so do check.

• You cannot avail the benefits outlined in the plan during the grace period, so if you fall ill during this time, you are on your own.

• Waiting period may restart if you have waited until grace period to pay the premium. This means specific illnesses may not be covered until the period passes even if you pay the premium now.

• Revival of policy:

If the policy premium payment has been delayed and you have paid during the grace period, you may need to pay some interest as well as some penalties as per your insurer’s terms. There is a specific time frame within which all of these must reach the insurer in order to renew your policy.

• Revival of lapsed policy:

A lapsed policy is one where the premium has not been paid even during the grace period. In such cases, the insurer may terminate the policy, but some insurers may allow you to revive the lapsed policy in the following ways:

• Within six months after policy lapse, you can revive the policy by paying the premium plus penalties and interest, if any. Some insurers allow this without the need for another health check-up, but you need to check with them beforehand.

• A non-medical ground revival would mean that your sum assured is lower than what was originally paid for by you when you bought the policy.

• A medical grounds revival is subject to a health check-up and the sum assured will be decided on the basis of the outcome of your check-up and may be lower than the original plan covered.

Keep in mind that you also lose all your accumulated no claim bonus if you have waited to make the premium payment until after the due date and grace period has elapsed. Also, for elderly people, the ability to renew for lifetime is available only if the policy is renewed without a break at any time. A single non-payment can make a health check-up mandatory for policy renewal, even if your original insurer is willing to do it.

Purchase a new plan from same insurer

If renewal is not possible at all, then you may have no option but to buy a new plan from the same or different insurer. Keep in mind that late payment of premiums or lapse of policy for non-payment is a black mark against you and labels you as a bigger risk. As a result, the new plan may prove to be far more expensive for you now and you may even find it difficult to identify insurers who will accept your risk. It is best to always keep in mind that if you let your policy lapse, then you will not be able to file any claim for your expenditure on treatment costs that may run into lakhs. This is the reason why it is important for you to make a schedule and set up reminders for premium payment dates so that you do not forget to pay. However, if you miss the due date, these tips given above should help you renew your policy and protect yourself and your loved ones in case of health emergencies.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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