Grace Period in Health Insurance Plans

In health insurance terms, the grace period is the time during which you can pay your health insurance premium after the renewal due date. You should buy a health insurance policy that offers the maximum grace period as you get more time to renew your policy even after the due date.

Read More

Policybazaar exclusive benefits
  • 30 minutes claim support*
  • 50,000 claims approved in last 15 months*
  • Schedule home visit with our advisors
  • Get a plan based on your medical needs

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Back
All health plans cover Covid-19 treatment
  • 1
  • 2
  • 3
  • 4

Who would you like to insure?

  • Previous step
    Continue
    By clicking on “Continue”, you agree to our Privacy Policy and Terms of use
    Previous step
    Continue

      Popular Cities

      Previous step
      Continue
      Previous step
      Continue

      Do you have an existing illness or medical history?

      This helps us find plans that cover your condition and avoid claim rejection

      Get updates on WhatsApp

      What is your existing illness?

      Select all that apply

      Previous step

      When did you recover from Covid-19?

      Some plans are available only after a certain time

      Previous step
      Advantages of
      entering a valid number
      You save time, money and effort,
      Our experts will help you choose the right plan in less than 20 minutes & save you upto 80% on your premium

      What is Grace Period?

      Your health insurance grace period is the extra time that you are given in case you miss your policy renewal premium due date. Failure to make the payment in the grace period can lead to your mediclaim policy cancellation or penalties. Most health insurance plans come with a grace period.

      How Does Grace Period in Health Insurance Work?

      Grace period provides you with a fair chance to pay your health insurance policy premium in case you are not able to make the payment due to some unforeseen circumstances. Most insurance companies offer a grace period of 15 days for the payment of medical insurance renewal premiums. But, there are also other companies that offer a grace period of 30 days.

      The duration of the grace period can vary depending on the insurance company and the type of mediclaim policy that you buy. Moreover, it is not necessary for every health insurance company to provide the benefit of a grace period.

      For instance, insurance company A’s grace period might differ from that of company B. It can even be the same. Therefore, you would need to check either with your insurance company or go through your policy wordings to see if there is a grace period available and for what duration.

      Is Grace Period and Waiting Period in Health Insurance the Same?

      No, your health insurance grace period is different from your insurance waiting period. In case of the waiting period, you need to wait for a fixed duration before you can file a health insurance claim for a disease/procedure.

      On the other hand, the grace period gives you an extra number of days to pay your health insurance renewal premium even after your due date has passed.

      For instance, if your mediclaim policy renewal premium is due on 1st January 2022, you can pay your premium until 31st January 2022 in case of a 30-day grace period. If you fail to make the payment before February 2022, then your policy will get lapsed and your insurer can deny your renewal request even if you want to make the payment later.

      Disadvantages of Not Renewing Your Health Insurance Policy on Time

      To enjoy uninterrupted health insurance coverage benefits, make sure that you do not delay your policy renewal. Do not wait for the grace period, instead, renew your policy before the due date. This is because renewing your policy during the grace period has its own disadvantages.

      Below are some of the drawbacks of not renewing your health insurance policy on time:

      • No Coverage Available in the Grace Period– Insurance companies offer insurance protection in exchange for the premium amount. If you have not paid your policy premium on time, your insurance provider will not be liable to provide coverage to you. Thus, you will not be able to avail coverage benefits or file a claim during the grace period.
      • Renewal Can Be Denied– The insurance company can choose not to renew your health insurance policy after your policy has lapsed. This may force you to buy a new health plan, which may not only come for a higher premium but also lead to the loss of accumulated coverage benefits, such as the no claim bonus.
      • Restart of the Waiting Periods– If your health policy lapses, the waiting period for any health condition or specific illness and other continuity benefits will be lost. Your waiting period will restart from scratch if you buy a new policy.
      • Wait More for Pre-existing Diseases Coverage– If you buy a new health insurance policy after your policy lapses, you will have to wait longer to file a claim for pre-existing diseases. This is because most health plans cover pre-existing diseases after a waiting period. Only after the completion of the waiting period as per the new policy terms and conditions, your pre-existing diseases will be covered.

      Higher Premium During Grace Period

      In case you have missed your premium due date and are going to pay it during the grace period, some health insurance companies may charge you a late fee. In cases where policyholders frequently miss their policy renewal dates, the insurance companies may charge them a higher premium on renewal.

      Failure to Pay the Premium within the Grace Period

      If you fail to pay your health insurance premium within the grace period, your policy may be cancelled for non-payment. In that case, you won't be able to avail coverage benefits if there is any health emergency or hospitalization.

      Alternatively, you can buy a health policy from another insurance company. But in the worst-case scenario, you may also be refused coverage from other insurers based on your past records of missing policy deadlines.

      Moreover, some health insurance companies would need you to undergo pre-medical screening before issuing the mediclaim policy if your previous policy had lapsed. This puts you at a greater risk of being denied the coverage or being charged a higher premium for a new policy.

      How Grace Periods Can Affect Your Claims?

      Health insurance companies allow premium payment within the grace period to ensure that your health coverage remains intact even if you pay late. You can still file a claim during the grace period in case of any health emergency once you have paid the renewal premium.

      In the absence of a grace period, your insurance company can deny you coverage for missing your renewal date and you won’t be able to file any claim even if you make the payment the next day of your due date.

      In case a health emergency arises that requires hospitalization and expensive treatment after you missed your policy during the grace period, you will not get any coverage. This will happen because your health insurance provider will cancel your policy for non-payment after the grace period is over.

      In fact, the insurance company will also refuse coverage until the treatment is over even if you pay the renewal premium. In such a case, the only option that you will have is to buy another health insurance policy at an exorbitant premium and start over with new terms & conditions and waiting periods.  

      In a Nutshell

      Late payment of your health insurance premium and failure to renew your policy during the grace period can cause inconvenience and cost you a bomb. If you have any pre-existing conditions, buying a new health plan will not be easy and you will have to start the waiting period all over again.

      So, make sure to pay your health insurance policy renewal premium on time to enjoy continuous coverage benefits and avoid putting them at risk. Even if there is a grace period, do not delay the payment unless there is an emergency.

      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

      Health insurance articles

      Recent Articles
      Popular Articles
      Should You Buy a Super Top-up Health Insurance Policy?

      18 Jan 2023

      India is abuzz with a variety of health insurance plans to cater
      Read more
      6 Reasons Why Your Cashless Health Claims Can Get Denied

      18 Jan 2023

      Cashless claims are one of the most lucrative benefits of buying a
      Read more
      Check Out the Mandatory KYC Documents for Health Insurance

      30 Dec 2022

      The Insurance Regulatory & Development Authority of India
      Read more
      What to Look for in a Health Insurance for Cancer Plan?

      20 Dec 2022

      Cancer is one of the biggest demons that the world faces today
      Read more
      What are the Factors Affecting Health Insurance Premium?

      20 Dec 2022

      Demand for insurance products in India, especially health
      Read more
      What are the Normal Thyroid Stimulating Hormone (TSH) Levels as Per Age?
      The thyroid gland is an important gland responsible to produce the right amount of hormones for normal body
      Read more
      How to Apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)?
      Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India to offer universal
      Read more
      Income Tax Slab for Women: Guide to Exemptions and Rebates
      In India, every person who earns beyond a certain limit is liable to pay income tax to the government. The tax
      Read more
      Best Health Insurance Plans for Senior Citizens in 2023
      Senior citizens are the most prone to diseases. Considering the medical inflation in India, buying health insurance
      Read more
      How Senior Citizens can save Tax with Medical Bills u/s 80 D?
      Senior citizens can save on income tax by availing tax benefits on medical expenses under Section 80D of the Income
      Read more

      top
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL