If you fail to pay the policy renewal premium on time, then you will be uninsured again, i.e. the coverage provided to you by your health insurance policy will be taken back. You are required to pay the renewal premium before the due date in order to continue the existing coverage. For example, if your policy expiry date is November 23rd, then you have to pay the premium before November 23rd to ensure that your policy remains in force.
If your Health Insurance policy renewal date is missed and you failed to pay the premium on time, then don’t worry. If your policy expiry date is missed, then also you can make the payment, as many insurance companies provide a grace period of up to 7 days, whereas some companies show some leniency by providing a grace period of up to 15 days. However, this period includes both working and non-working days. If you fail to make the payment even after the grace period, then nothing can stop your policy from getting lapsed.
What if your health insurance policy got lapsed?
You will have to face disastrous consequences if your policy lapses as a result of your negligence. You will have to buy a new policy and it will be like you are buying it for the first time. Moreover, in case you have earned any bonuses like no claim bonus on your previous policy, then your entire bonus will be taken back and your coverage will start from the scratch.
It is not just about the no-claim bonus, but it is also the consequences you will have to face. You will have to go through a waiting period of 2 to 4 years; after this tenure, you will be provided the insurance cover for critical illnesses. Furthermore, this waiting period will remain as it is and will not be adjustable for the waiting period that you have already faced when you purchased your first policy. It is considered as a huge penalty in return for not paying the renewal premium on time.
Ways to avoid lapse of health insurance policy
A health insurance policy plays very important role in your life. It is the best way of planning your future in terms of finance. If you have an insurance policy with a complete range of benefits, then the following tips may be helpful if you don’t want to face the trouble of revival of your lapsed policy:
- The best way to avoid lapse of your health insurance is to keep a track of the dates regarding your policy. You can set reminders in order to know when to pay and what to pay so that you don’t face the loss of your coverage.
- You can also opt for automatic ECS. ECS will automatically deduct the premium from your bank account on or before the due date whichever applicable.
- Many insurers start sending reminders regarding premium payment when the due date is approaching. In case you missed the renewal date, you have a grace period to pay the due amount and continue to enjoy the existing benefits of the policy.
- Many insurance companies have linked up with numerous banks for your convenience. In such a case, you are provided with the option to pay the premium through the ATMs of these banks. This will save your time and money, thereby preventing the chances of the policy lapse.
- In today’s world, everyone is addicted to smartphones. They need their phones 24x7 and this addiction can help you too. This means that you can avail the facility of reminders through e-mail or SMS so that you never miss your policy renewal date.
|You may also like to Read: Health Insurance Renewal Process|
Revival of Health Insurance policy
You can revive you lapsed policy by paying the outstanding premium with interest. In some cases, you many need to undergo one or more health checkups. The following are the ways through which you can revive your lapsed policy -
Ordinary revival: If you decide to revive your policy within six months from the date of policy lapse, then you don’t need to go under any health check-up. You just have to pay the outstanding premium along with the interest. The interest you will have to pay is subject to the date when your policy came in force.
Revival on non-medical grounds: If you choose to revive your policy on non-medical grounds, then the amount to be revived will be less than the promised limit of non-medical assurance, which was purchased by you.
Revival on medical grounds: You can opt for revival on medical grounds only if you fail in both ordinary revival and revival on non-medical grounds. The sum to be revived under this procedure will be decided only after you undergo a medical test.
It is highly advisable to have an open discussion with an insurance agent and find the best way out. It is important for you to understand that revival of policy is not a good practice. Understanding this will ultimately help you, as it keeps you away from tensions at the time of the revival.
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