What should you do when your retail health insurance expires?

Retail health insurance is a contract between the insurance company and the insured customer in which the insurance company pays the hospital bills of the insured customer up to the sum insured limit in return for a certain amount known as Premium.

Retail health insurance policy also known as personal health insurance policy https://www.ethika.co.in/personal-health-insurance/ is offered by the insurance companies for a period of 1/2/3 years. Continuity should be maintained in a health insurance policy. Unlike the other insurance policies which can be renewed without any loss, it is not the case with health insurance policy. A retail health insurance policy has waiting periods which are to be satisfied before the claim is payable for certain illnesses. If there is a break between the renewals, then the benefits accumulated in the form of waiting period exemption would not be applicable to the renewed policy.

Here are the options to follow in case your retail health insurance policy expires: – 

Option 1:- Renewal before Grace period:- The first option is you found out that your retail health insurance policy is expired but the grace period to renew is still valid. In this case if the renewal is done before the expiry of grace period, then the benefits would be passed on to the renewal policy. All the waiting period benefits, no claim bonus accrued in the previous year policy would be carried forward if the renewal is done before the grace period.

Most of the insurance companies send renewal notifications 45 days prior to the expiry of the policy. If due to any reason the renewal is not done before the renewal date, then you can approach your insurance intermediary to renew the policy so that the existing benefits would be carried forward. 

Option 2:- Renewal after Grace period:-

The second option is when the renewal is to be done after the expiry of the grace period. Insurance companies provide at least 15 days Grace period from the due date of renewal. If the renewal premium is not paid during this grace period also then the health insurance policy would lapse.

Now the customer has two options, either to purchase a new health insurance policy after undergoing the procedure or renew the existing policy. Sometimes insurance companies might ask for a health checkup and other details for the renewal of an expired policy.

Once the health insurance policy expires, all the benefits accrued under the policy in the previous years would expire and the customer should start from scratch. This means the waiting period should be satisfied from the beginning if the renewal is done after the expiry of the grace period.

The procedure for renewal of the health insurance policy after the expiry of grace period would be the same as that of a new policy. The customer has to approach an insurance intermediary or the insurance company to renew the health insurance policy. The terms and conditions for renewal would be decided by the insurance company.