A health insurance policy is a contract between a policyholder and the insurance provider wherein the insured agrees to pay the premiums on time and in return, the insurer agrees to offer health coverage. This clearly suggests that you need to keep paying your premiums on time to keep the policy active.

But with busy professional and personal lives, it is possible that you might miss the health insurance premium payment date. What can you do in such cases? Let us have a look-

What Happens When You Do Not Pay Health Insurance Premium?

If you fail to pay the insurance premium on time, you will no longer have the coverage provided by the policy. This means that if you have not paid the premium until the renewal date and for some reason need medical care, the insurance provider will no longer cover your medical expenses. You will solely be responsible for paying the medical bills from your own pockets.

What is the Grace Period?

Insurance providers have a grace period, generally of 7-15 days, after the premium payment date. If you have not paid the health insurance premium before the due date, you can pay the same within the grace period to prevent your policy from getting lapsed. However, note that the grace period includes working as well as non-working days.

How Can You Avoid Missing the Premium Payment Date?

If your health is secured by health insurance, you should make sure that you pay the premiums on time to keep the policy active. Here are a few tips that can protect you from getting your insurance lapsed-
  • Keep track of your premium payment dates and set reminders for the same
  • Make sure that you provide a correct email address and contact number to the insurance provider as they will send multiple premium payment reminders
  • Use a health insurance premium calculator to know your exact premium and keep the required amount aside
  • Opt for automatic ECS (Electronic Clearing System) as this will make sure that your premium is automatically debited from your bank account before the due date

Premium Non-Payment Could Result in Policy Lapse

Paying the premiums on time is as essential as purchasing a health insurance policy. When purchasing the insurance, select a premium frequency that you are comfortable with from monthly, quarterly, half-yearly, and annual options.

Give due attention to the premium payment dates and pay the same on time to avoid running into the troubles of a lapsed policy.

Learn more about different Health Insurance Plans here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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