Health Insurance 247 views April 22, 2021

Health insurance, which offers financial protection to you and your family members against health emergencies, needs to be renewed every year. It means the health insurance premium paid remains valid for a year. After a year, you need to renew your health insurance plan by paying the premium on the due date. You will get a grace period of 30 days too if you fail to pay on the due date. Even then, If you don’t pay the renewal premium, the policy will lapse. With that, you will lose the financial cover when faced with a medical emergency along with many value-added services. We’ll discuss the same in this article. So, let’s read on!

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Losses for Individuals When Failing to Renew Health Insurance

Above, we have hinted at the problems one could face when failing to renew health insurance within the stipulated period. Losing the policy is evident in such a case, but missing out on benefits such as no claim bonus will only make you rue later! You could face some inconveniences too. We will talk about everything here. So, keep reading!

Loss of Health Coverage

The last thing that you want in times of medical emergencies is having to pay massively towards medical treatment. And with a lapsed policy, this could well be the case for you! You might end up exhausting a significantly high proportion of your savings given the healthcare costs these days. So, don’t let your policy attain the lapsed status – pay the renewal premium on the scheduled date and stay free from such unwanted expenditures.

Loss of No Claim Bonus

Health insurance companies come with a unique benefit of no claim bonus (NCB), which means the rise in the sum insured when you don’t claim in a financial year. The sum insured can rise by a maximum of 100% as per the norms laid down by a particular health insurer. Generally, it rises by 10-20% after every claim-free year. The increased sum insured will only help meet the rising healthcare expenses adequately. And not claiming health insurance is very much possible for most people, particularly young individuals. So when you do fall ill, you will have enough for your treatment expenses. Imagine how you will feel when you lose this privilege courtesy lapsed policy status due to non-payment of renewal premium.

Waiting Period Will Increase Further

If you have an illness before the commencement of a health insurance policy, you will need to wait for 2-4 years before the cover starts for the same. Assuming you do not pay after two years and the policy gets lapsed, your wait for such coverage will increase by a further 2-4 years. At the same time, you will again have to wait for 30 days to get cover for a new illness. All that adds to frustration!

A New Health Insurance Plan Would Come at a Higher Premium

You will need to buy a fresh health insurance plan, which could have a higher premium amount as the previous policy got lapsed due to non-payment of premium. It creates a bad impression before the insurers, which could hike the premium for a fresh policy. Some cases get rejected too because of such a poor premium payment record.

Medical Check-ups Will Happen

Usually, health insurance companies don’t tell people to undergo medical check-ups if they are below 45 years old. But a lapsed policy status will invite medical check-ups for you even if you are below 45 years when buying a fresh health insurance plan. At that stage, if you are found to have some health complications, either the premium will rise or the insurer will reject your insurance application.

Conclusion

So, these are the problems that you could face if you don’t renew your health insurance within the stipulated time. At the same time, some could not renew due to genuine issues such as loss of job. In such a case, they can ask for help from family and friends and prevent their policy from attaining a lapsed status and the problems that come with the same. As and when the financial conditions improve, they could pay back the borrowed money. Those not facing any financial issues need to keep a lid on unnecessary expenses and pay their renewal premium on time.

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