Timely payment of your health insurance is crucial. But sometimes, things get too hectic. You might forget the due date or get delayed. Fortunately, insurance organizations provide you with a slight extension beyond the due date. This is known as the grace period in health insurance.
But suppose you are late even for this grace period. What will be the course of action then? Let’s see step by step in simple terms.
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What is the Health Insurance Grace Period?
The grace period is additional time that your insurance company provides you to pay after you have already missed the due date. It typically extends for 15 to 30 days based on the company as well as plan.
In this period, your policy continues to be in force, and you are covered. If you make the payment within the grace period, all is well.
But if you fail to do this too, the situation gets critical.
1. Your Policy May Get Cancelled
If you fail to pay even after the grace period, your health insurance policy can be cancelled. Your coverage will cease. If you get ill or need medical emergency care after it is cancelled, the company will not assist with any treatment or hospital bills.
2. You Will Have to Pay Medical Bills Yourself
Health care might be costly. If you do not have a legitimate health insurance policy, you will pay all the medical costs yourself. This can be stressful to your finances, particularly when it comes to emergencies.
3. You Could Have Problems Obtaining a New Policy
When your previous policy lapses, you might be required to buy another one. But this could present some issues:
- You might be required to undergo new medical tests
- Your premium may increase from previously
- Some medical conditions might not be covered immediately
- There may be longer waiting times for some treatments
4. You May Lose Previous Benefits
Most health insurance policies include waiting periods for a particular disease or treatment. If your previous policy is cancelled and you purchase another one, your waiting period might re-initiate. This implies you might have to wait again to make certain claims.
5. Your Family May Also Lose Coverage
If you have a family floater policy (one policy for all family members), missing the grace period will affect all the members covered by the policy, such as your spouse, children, or parents. They, too, will lose cover.
What You Can Do If You Miss the Grace Period
If you find out that you have missed the due date as well as the grace period, act at once:
- Ring your insurer immediately
- Inquire whether you can reinstate or renew your policy
- A few insurers reinstate a policy within a specified period, but you will need to pay a charge or submit additional documentation
Last Thoughts
Missing the grace period on health insurance makes your policy lapse and leaves you without cover. It also becomes more difficult and expensive to get covered again.
To prevent this, always write down your premium due dates and remind yourself. Pay early if you can. Having your health insurance coverage in effect provides you and your family with peace of mind.
Health insurance is not a policy, it’s your pillar in times of crisis. Don’t let it expire.