Grace periods in health insurance plans: Understanding the window

The grace period in health insurance refers to the time window you get after the policy expiration date to get the coverage renewed. This usually varies between 15 and 30 days and is a period during which you can choose to pay the premium and continue with the coverage. The grace period is a handy facility that allows you to retain your coverage even if you are unable to renew your medical insurance plan on time.

What is the grace period in health insurance?

As stated, the grace period is an extension period within which you can make a payment for your health insurance premium. Every mediclaim policy comes with a fixed policy period. Once this period is over, you must pay the premium again and extend the coverage for the next policy period. It is advisable for you to pay the premium before the plan expires to avoid any issues. However, suppose you forget to do so or are unable to do it due to some emergency. In that case, the insurance provider gives you some additional time, known as a grace period in a health insurance plan. Your policy is only cancelled at the end of the grace period, after which it is completely terminated.

Points to note about the health insurance grace period

Now that you know what is the grace period for health insurance premiums, let us give you some extra information about it:

• Claims cannot be made

You cannot make any health insurance claims during the grace period. You will have to pay the premium and activate the plan before you file a claim. So, even though your policy won't be cancelled, the facility of making claims will be disabled during the grace period.

• The premium may be higher

Many health insurance companies in India charge a late fee for renewals done during the grace period. This may lead to your health insurance premium increasing.

• You may lose your rewards

There are many accumulated rewards in health insurance such as the no-claim bonus, the waiver of the waiting period, the coverage of pre-existing diseases, etc. If you do not pay the premium on time, you may stand to lose all the rewards and that would surely prove to be a big loss.

• Duration may vary

The different health insurance plans have different grade periods. While one insurance provider may offer a period of 15 days, another may offer a 30-day grace period. Ensure you read the policy wordings very carefully to understand what provision you have under your policy.

Keep these crucial points in mind when you find out more about what is the grace period for health insurance premiums.

Conclusion

What is the grace period for health insurance? It is some extra time that you get to continue with your existing health insurance plan. Ideally, you should not look to extend your coverage into the grace period. Pay the health premium on time and enjoy uninterrupted coverage from a good insurer such as Zurich Kotak Health insurance.

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