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What happens if you fail to make the health insurance premium payments on time? | FAQ #17
Jan 12, 2018 | 288 VIEWS
It is very important that you pay your health insurance premiums on time at the time of renewal. The consequences of not paying on time can be quite painful. I will explain this with a few scenarios.

As per regulations, insurance companies will have to offer a 15 days grace period for payment of health insurance renewal payments. Some companies will offer you a grace period of 30 days also. Grace period refers to the number of days after your renewal premium payment date. So if you renewal premium was due on 1st Feb 2018, you have time till 15th January to make the payment in the worst case scenario. After the grace period, the insurance company can refuse to renew your policy even if you are willing to make the payment.

So here are the downsides of not making the renewal payment on time:
  1. Renewal can be refused - The company can choose to not offer the health insurance renewal and you will now have to start a new plan all over again. This will result in loss of any benefits which you enjoy.
  2. No coverage benefits in the grace period - Since you have not made the payment on time, you will not get any benefits in case you have to make a claim in the grace period.
  3. Pre-existing coverage period is re-set - You will now be treated as a new customer. So any existing illnesses will now be considered as a pre-existing illness and will have to go through the waiting period.
  4. Waiting periods - Any waiting period for any illness or condition will now re-start and this could be a problem as your  continuity benefits are completely lost.  
So ensure that you make your renewal premium payments on time for your health insurance plan. As you grow older or if you have any existing condition, getting a new plan will not be easy. And you will be treated as a new customer.
If you have any questions on this, please drop a comment and we will get back to you.

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