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What is Health Insurance Grace Period?

Posted On : 27 June 2023, 10 Months Ago. Blog
Health Insurance Grace Period

People have begun to realise the importance of medical insurance more than ever. Awareness about various aspects of health policies is all around, and people are well informed.

 

However, a lot of people miss out on certain important steps and processes.

 

The health insurance grace period is one such term that not a lot of people are familiar with.

 

This blog will discuss what is health insurance grace period and what are the different consequences if you fail to pay within the grace period.

 

What is a Grace Period?

It so often happens that a person may not pay the required premium for their medical insurance annually. The number of days one can take to pay the premium for their insurance after missing the due date is called the grace period for health insurance.

 

On failing to pay within the grace period, the person who has opted for the healthcare plan must face penalties. Not only this, some insurance companies even cancel the medical aid policy for the person if they fail to pay the premium. The grace period is provided with the aim of giving the insured time to pay their premium, which they might not have been able to pay due to unexpected circumstances.

 

Different companies offer different durations for grace periods. It is also possible that not every insurer will provide their customers with grace periods.

 

What is the Difference Between Grace Period and Waiting Period?

Grace Period Waiting Period

In the case of a grace period, you get an extended period after the due date to pay your premium so you can renew your policy to file claims in case of a medical emergency.

As soon as you pay your premium within the grace period, you can file for claims.

A waiting period is the fixed duration of time you must wait before you can avail the benefits of healthcare insurance or file a claim.

You have to wait for the stipulated time and cannot file claims at all, even if you have paid your premium timely.

 

What are the Disadvantages of Not Paying your Premium?

The health insurance grace period is provided so the customers can pay their premiums and then enjoy the benefits of the medical policy. However, not paying the premium on the due date brings with it its own share of disadvantages.

 

Here is a list of the backlashes you have to face in case you don’t pay your premium or renew your policy within the stipulated time.

 

  • Coverage for expenses is not provided during the grace period. The insurance companies can only offer you coverage if you pay them the required premium. In the absence of that, the companies would not offer you any services, coverage, or benefits during the grace period.
  • Insurance companies have the authority to deny your health insurance if you do not pay the premium in the given time. In such a situation, you would have to buy a new health plan, and that would cost much higher. You will experience a loss of benefits like the no-claim bonus you might have gained over time.
  • Another disadvantage is that the waiting period for everything will start from scratch. You would have to register for pre-existing diseases all over again.
  • It is also possible that when you try to pay your premium during the grace period, you will have to pay higher amounts. Some insurance companies will charge you higher as a penalty for not paying before the due date.

 

Paying premiums on time is the basic prerequisite for availing the benefits of healthcare insurance. This blog discussed the various facets of a health insurance grace period and how it depends on the health insurance companies' duration, benefits, and penalties during the grace period. A stitch in time saves nine, holds true and hence makes sure you renew your policy and pay your premiums at the right time.

Secure your health with comprehensive insurance plans from Nivabupa

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I authorize Niva Bupa to call me. This will override your existing registry in DNCR. I want to get my quote and policy details on WhatsApp.
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