Understanding the Meaning of ‘Grace Period’ in Your Medical Insurance

What is the Significance of an Insurance Grace Period? | Embroker

Nobody wishes to become ill, yet we cannot prevent it. Most individuals require medical care at some point in their lives and have to rely on health insurance coverage. Therefore, it is crucial to maintain continuous coverage and renew your policy before time. Explore Bajaj Allianz mediclaim policies to buy a suitable plan based on your health requirements.

What is the grace period in health insurance?

Most health insurance policies are valid for one year, after which the policyholder should renew the policy for another year. Health insurance firms provide a grace period for their health insurance renewal to customers who still need to get their mediclaim or health insurance policy renewed on time. Senior citizens should often remember to pay premiums and should set reminders in advance. For your parents or grandparents who are above 60 years, check out Bajaj Allianz health insurance for senior citizens

The grace period for health insurance renewal often ranges from one week to thirty days. Let’s assume that you do not pay the premium during the grace period. In that case, your policy would expire, and you can lose all benefits and 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 should wait before receiving health insurance benefits. The insurer would deny claims submitted within the waiting period. * Standard T&C Apply

Benefits and privileges you may lose if you do not renew within the grace period:

  1. You lose your coverage: The most crucial disadvantage of failing to renew your health insurance policy during the grace period is losing coverage. The lapsed policy provides no insurance coverage, and even if you file for a new one, it may take several days to receive it. 

Given the medical treatment and hospitalisation prices, it is unwise to go even one day without insurance. *

  1. You lose your Cumulative Bonus (CB): One of the most tempting characteristics of health insurance coverage is the no-claim or cumulative bonus incentive. It is an incentive offered by insurance companies to policyholders who do not file a claim in a given year. Bajaj Allianz health insurance plans for family coverage offer a cumulative bonus as an increase in the sum insured to its customers who do not file a claim in the year. *
  1. Policy portability: If your coverage lapses, you lose the option to transfer it to a different health insurer. You have to submit a porting request within 45 to 60 days before policy expiration. *
  1. The new policy would be expensive: New coverage would cost you more due to increased health insurance expenses. In addition, you would be an additional year older, contributing to increased premiums. *
  1. Longer waiting period under the new plan: Certain pre-existing diseases and maternity benefits may be subject to a 24 – 48 month waiting period under most health insurance plans. According to the new plan, you may have to wait a few more years before utilising these facilities. *
  1. Re-examination of health: You may be required to undergo a thorough physical examination to obtain the new policy. If you are a senior citizen, this medical re-examination can be more time-consuming. And what if you fail the examination? A medical exam may not be required to renew health insurance coverage. *

* Standard T&C Apply

For all the above-mentioned reasons, it would be best to renew your Mediclaim policy within the grace period and continue enjoying peace of mind and support in emergencies. We suggest you check out Bajaj Allianz mediclaim, which has some great reviews online. 

‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.’

Source: https://www.libertyinsurance.in/health-insurance-guide/what-is-the-grace-period-in-health-insurance-plans.html

Leave a Reply

Next Post

<strong>International Travel Insurance Policy: What Should You Keep in Mind?</strong>

Medical consultations and treatments can be expensive – even more so when travelling abroad. Did you know that even seeking treatment for relatively minor ailments when travelling internationally can put a significant dent in your finances? Consequently, hospitalisation would be expensive if something tragic happened while travelling abroad. When travelling […]

You May Like