Things to Do When the Health Insurance Lapses read
Jul 27 2020658 Views
Whenever you face any health issue, the safety valve against the medical expenses is nothing but your health insurance policy! It usually comes with a fixed tenure. You need to pay the premium to revive it. If you miss the due date for premium payment, the insurance benefits are detained.
In such cases, buying a new plan can be harrowing, and one will also lose any no-claim bonus. Thus, you must stay vigilant and renew the health insurance plan on time. Here, you have a provision of opting for plans that offer extended duration by paying the premium once in 2 or 3 years.
Nevertheless, follow these guidelines when you go- “What if my health insurance lapses?”
• Grace Period for health insurance: A grace period is an extra time granted to make the payment. This is the last chance where you can pay the due premiums. The grace period usually varies between 15-30 days from the date you missed your payment. You can retain your policy without the need for a new plan if renewal payment is made within the grace period. Payment within the grace period for health insurance ensures the continued benefits of a no-claim bonus.
The critical point is that the grace period only buys you the time to revive a lapsed policy. It does not provide any coverage against risks if anything goes downhill in those 15 days. Thus, pay the renewal premium immediately and revive your existing health insurance plan.
• Purchase a new health insurance plan: Buying a new plan is another alternative. This happens if you fail to act even during the grace period for health insurance. It is best to avoid lapses at all costs as the alternate scenario has shortcomings. There will be no medical coverage, inaccessibility to no-claim bonus, and extended waiting period.
You also have a chance to re-purchase the former lapsed plan from the concerned insurance company. If it has been more than six months since the plan is expired, you need to pay the premium right from scratch. Then you will have to undergo a pre-medical check-up. You can also find better alternatives for the former plan, tailored to personal needs.
• Precautionary measures for the future: Grace period for health insurance is the golden time offered to rectify your negligence. Set digital reminders and spare yourself from the thought of - what if my health insurance lapses? Opt for electronic and scheduled payments that will automatically deduct the premium from your account. This also eliminates the need for any extra effort from time to time. Several insurance companies have linked up with banks to make the process of payment easier.
Many insurance providers, nowadays, send reminders through emails and messages to ping you about the approaching due date. The critical point here is that make health your priority today. Then everything tied to it will never go out of your mind.
On missing the due date, the faster you act, the better it is for you. Once the grace period is over, there is no going back to your existing health insurance plan. Buying a new plan can be a harrowing experience, but the only option after your plan lapses. Thus, pay on time, act on time and avoid wastage of time in the long run.