Here Is What Will Happen If You Do Not Pay Your Premium On Time

A health insurance policy is useful during the treatment of a medical condition or in a medical emergency. Your policy is based on the principle that your financial risk is being shifted upon your insurer. This shift is feasible only when you pay the premium amount. This payment ensures that you get adequate coverage for your medical needs as per the policy’s terms. 

Your insurance premium amount is dependent on various factors. One of the major ones among them is the cover offered under your policy. You can decide your cover based on your and your family’s health requirements. After you decide the sum insured, your insurer will consider that and other factors to finalize your premium. Pay this amount premium annually or monthly to receive continued cover. If you fail to make these payments on time, you may lose coverage. 

Read on to know more about what happens if you fail to pay your health insurance premium.

Grace period

In case you miss the due date to pay your premium, a grace period is triggered. This allows you to pay the amount after the due date. Usually, the grace period is of 15 days and failure of payment during this time will result in a lapse of your policy. While you can renew your policy during the grace period, your insurer would not cover you in this phase [1]. After paying the premium amount, you may be able to file a claim for a medical emergency.

Your grace period is dependent on your insurance provider and the type of policy you have. Some companies may not even offer a grace period. Make sure you read your policy documents carefully, or talk to your insurer to know about the grace period and its terms. 

Policy lapse

If you fail to pay the premium during the grace period, your policy will lapse, leaving you uninsured. You will also lose the benefits you have acquired over time, which includes the no-claim bonus. 

Your insurer may deny your request for renewal as well. If you get a new policy with the same cover, you may have to pay a higher premium amount and not get the same benefits. For your new policy, you may also get a longer waiting period. This may depend on your insurer, age, and health condition. This period may be anywhere between 30 days to 4 years before your policy comes into effect. You may even lose the lifelong coverage benefit offered by many insurance companies. 

Upon failure to pay the premium, you will lose the option of portability. A lapsed policy may not be available for porting to a different insurance provider. A request for policy porting has to be made at least 45 days before your policy due date [2].

In some cases, your insurance provider may give you the option of reviving your policy. You may also have to take some medical tests before your insurer decides to revive your policy. Some of the policy revival methods are:

On non-medical grounds

Doing so will reduce your insured amount. The reduction will happen at the discretion of your insurance provider.

Ordinary revival

If you choose to revive your policy within 6 months from the date of lapse, you may not require any health check-ups. However, you will have to pay the interest along with your premium. The interest will be decided by your insurance provider.

On Medical grounds

Revival on medical grounds is available when you fail to revive the policy on ordinary or non-medical grounds. You may be required to undergo certain health check-ups and tests to ascertain your health. Your sum insured will be decided on the results of your medical tests. 

It is important to understand that policy lapse is not good for your credibility. In revival, your insurer may ask for proof that assures them of your ability to continue with the policy. These proofs may include a clean bill of health and income-related documents reflecting your ability to pay premiums on time. Your insurer may also ask for evidence that would suggest that the non-payment was unintentional. 

Remember that the process of health insurance policy revival depends on your insurance provider. It may differ among insurers. So, make sure you talk to your insurance provider or your agent regarding the revival terms of your policy. Your insurer may also ask you to pay the premium amount with an interest at the time of policy revival. In such cases, do compare the premiums of a new policy and your older policy to see which would be more feasible for you. 

Having a health insurance policy is essential because of the benefits it has to offer. This is why it is important you pay your premium on time and stay insured. If you do not have any insurance or are planning to get one, you can check out Complete Health Solution plans offered on Bajaj Finserv Health. Its four variants come with an affordable premium amount with an option to pay on a monthly basis. The plans also have a number of benefits with an insured amount of up to Rs.10 lakh. This way you can get the best coverage at an affordable price.