The rising healthcare costs in the country have made health insurance an absolute must for everyone. People as young as in their 20s and 30s suffering from severe health problems is another significant reason why every individual should invest in a feature-packed health insurance plan.
But when purchasing something as critical as a health plan, it is essential to understand as much about them as possible. The grace period in health insurance is a vital aspect that deserves your attention. Take a look at what it means and why it is important for every policyholder-
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What is Grace Period in Health Insurance?
In simple words, a health insurance plan is an agreement between a policyholder and the insurance provider. The policyholder agrees to pay policy premiums on time, and in return, the insurer offers health coverage. This health cover is only valid as long as the policyholder continues to pay the premiums on time.
But in case if a policyholder does not pay the applicable premium before the due date, the insurer does not immediately cancel the policy. There is generally a grace period of 15 days after the due date, within which the policyholder can pay the premium for keeping the insurance active.
Are Grace Period and Waiting Period the Same in Health Insurance?
No, the grace period and waiting period of a health plan are not the same. As mentioned above, the grace period is extra days after the due date, within which you can pay the premium for renewing the policy.
The waiting period, on the other hand, is the number of days you should wait to file a claim after purchasing a health insurance plan. If you file a claim before the waiting period is over, the insurer will deny the claim.
Why Should You Pay Health Insurance Premiums on Time?
There are several disadvantages of not paying the health insurance premiums before the due date or at least within the 15-days grace period. Here are some of the most important ones-
Losing Health Coverage
Needless to say, the health cover only remains active as long as you pay the premiums on time. If the grace period ends and you’ve not paid the policy premium, you’ll lose the health cover.
Losing NCB
The No Claims Bonus or NCB is the premium discount you receive for not filing any claims in a year. It is a cumulative bonus that increases up to a limit for claim-free years. By not renewing the existing policy, you’ll be required to purchase a new health plan at a full premium without any NCB.
Waiting Period
As discussed above, health plans have a waiting period after which a policyholder is allowed to file a claim. If you let the current health insurance expire without renewing it, the new plan will again have a waiting period for filing a claim.
Renew Health Insurance on Time for Enhanced Security
Health problems could have severe financial and emotional consequences. Purchasing a health insurance plan and renewing it before the due date by paying the applicable premiums is one of the most effective ways to secure your health and receive the best medical care.
Look for a reputed insurer to know more about the features and benefits of health insurance and make this necessary purchase as quickly as possible. Apart from individual plans, you can also consider family floater plans to secure the health of your loved ones too.