What Happens When a Health Insurance Policy Lapses & What to Do Next | RenewBuy
A health insurance policy comes with a fixed duration. Normally, this tenure is for a period of one year. But what do you do when a health insurance policy expires? Nowadays, health insurance plans also come with longer durations. there are plans that you can buy for a continuous period of two or three years by paying the premium for two or three years all at once. These long-term plans not only take the hassle out of annual renewals, they also lower your premium cost because there are premium discounts for choosing longer durations. however, even in the case of long-term health plans, renewals are required when the term of the policy ends. if you don’t renew the plan on time, your health insurance policy expires.
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Let’s look at what to do when a health insurance policy expires and how it affects the policyholder.
Reading: What happens if health insurance lapses
what is an expiration in a health insurance policy?
If the health insurance policy is not renewed before the policy expiration date, the policy will lapse. an expiration of the policy means the termination of health insurance coverage. If the health insurance policy expires, the coverage available under the plan ends. In the event of a loss in an expired policy, the insurer does not pay a penny since the coverage has ceased.
what to do when a health insurance policy expires?
If your health insurance plan has expired, you must pay the renewal premium as soon as possible to renew the plan with existing coverage benefits.
grace period renewal:
There is a grace period on health insurance plans. this period allows the payment of the renewal
premium after the policy has expired. most health insurance plans offer a 30-day grace period. If the policy has expired but you pay the renewal premium during the grace period, you can restart the policy. the continuation benefits of the reduction in the waiting period and the no claim bonus would be applicable in such a policy that was renewed during the grace period.
Things to note about the grace period:
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Although a grace period is allowed to reinstate an expired health insurance policy, the grace period does not allow coverage. if a claim occurs, the company would not pay any benefits even if the policy is in the grace period.
why should a lapse be avoided?
It’s always best to renew your health insurance plan before it expires. a lapse should be avoided for the following reasons –
no coverage in the interim period:
There is no health insurance coverage on an expired policy. Given the high medical costs, these expenses could burn a hole in your pockets.
A lapse prohibits your ability to migrate to a different company. If you want to change your health plan due to any service issues or better coverage features or any other reason, you lose the ability if the health insurance policy expires. the portability request must be made 45 to 60 days before the expiration date of the policy and no later than the expiration of the term of the policy.
If the policy is not renewed during the grace period, you will lose the renewal benefits of your existing health insurance plan.
In case of expiration, you lose the benefits of continuity of the grace period on pre-existing diseases. the reduction of waiting time in pre-existing diseases and other treatments. then you would have to purchase a new health insurance policy with a new waiting period of two to four years or as defined by the insurer.
limited scope of the new policy:
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If you’re a senior, you may find new health plans that have a scope of coverage limited to that of your lapsed health insurance plan. for still others, her new ailment might not be covered by the preexisting clause, which would otherwise have been covered in her old plan.
renewability for life:
In addition, lifetime coverage is only allowed if the policy is renewed without interruption. If the policy is not renewed within the grace period, you may not be able to find a health insurance plan for your age.
no claim bonus:
Even the accumulated no-loss bonus for not claiming in previous years would be lost if the policy is not renewed on time.
how to renew/reactivate an expired health insurance policy?
However, if your health plan has not been renewed and has expired beyond the grace period, all you need to do is purchase a new plan. Since it cannot be renewed now, you can continue the same plan with your previous insurance company by simply paying the premium and having a pre-medical checkup, if the period is greater than 6 months, or compare and then buy a new insurance plan. health insurance for you that best suits your needs.
little steps to make sure you don’t cancel your health plan next time
Update your email ID and phone number accurately with the insurer and update them in the event of a change, so you don’t miss renewal calls, emails, etc.
You can also create a standing instruction on your account, credit card, etc. so that the renewal is processed automatically even if you are busy or out of the country or unable to pay within the grace period. this way, you’ll never miss your lifetime renewal!
With technology on our side, there’s no excuse not to pay for renewal. can be done smoothly through network banking, phone banking, APP banking, etc. and at the click of a button.