What is a Health Insurance Plan’s Grace Period?

Most health insurance renewals have a grace period of anywhere from one week to 30 days. The grace period for the health insurance policy must be utilized as a lifeline. If you fail to pay the premium during the grace period, your policy expires and you lose all benefits, as well as any privileges and loyalty points you may have accumulated over time.

The grace period for health insurance should not be confused with the waiting period. The waiting period is the time new policyholders must wait before receiving health insurance benefits. The claims submitted within this timeframe are denied.

Advantages and privileges you may lose:

You have no protection

The most important disadvantage of failing to renew your health insurance policy during the grace period is losing coverage. The lapsed policy doesn’t give you any insurance coverage, and even if you apply for a new one, you might not get it for a few days. Given how much medical care and hospital stays cost, it’s not a good idea to go even one day without insurance.

The ability to move a policy

If you let your policy lapse, you can’t take it with you to new Friday health insurance providers. You have to ask to port a plan at least 45 to 60 days before the policy ends.

The new policy is sure to cost a lot

Costs for health insurance keep going up, so a new plan will cost you more. Plus, you would be a year older, which is another reason why your premiums would go up.

A longer time to wait

Some pre-existing conditions and maternity benefits have to wait between 24 and 48 months before they can be covered by health insurance. With the new plan, you will have to wait a few more years before you can start using these facilities.

Check-up on health again

To get the new policy, you may have to get a full health check-up. This medical test takes a lot of time. Also, what if you fail the medical exam? When you renew your health insurance, you don’t have to go to the doctor.

Renewability for life. Some insurance plans let you renew them for the rest of your life, but if you let your plan lapse, you lose this right.

Conclusion:

You can’t go without insurance. Even for one day, you shouldn’t go without health insurance. Suppose that you are unhappy with your existing health insurance provider or plan. In that case, you can switch to a different health insurance company without losing any of the benefits, bonuses, or extras that come with your current policy or plan. The IRDA (Protection of Policyholders’ Interests) Regulations say that when you switch insurance companies, your new insurer must make sure that you keep the benefits and privileges you had with your old insurance company. So, if you move your coverage, you retain the waiting period credit for pre-existing conditions.

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