The grace period in health insurance is the period provided by your insurance company after your policy expiration date. It allows you to save your policy from immediate cancellations.
The grace period for renewal of health insurance gives you a window of opportunity to prevent your health insurance policy from expiring. If you pay your premium within that period, your coverage continues, and you won't have to buy a brand-new health policy.
While it has certain benefits, there are also some considerations you need to remember, particularly regarding how your medical costs will be covered during that period.
What is the Grace Period For Health Insurance?
A grace period is a time frame after the policy expiration date, during which the insurer keeps your plan active so you can make your renewal payment. The grace period for Reliance health insurance is 15 days for policies where the premium is paid monthly and 30 days for all other cases.
Although your health insurance plan stays active, you need to remember that you can not file claims during this period. Your insurer will cease all claim settlement actions until your premium is paid. Once paid, you will continue to enjoy all the benefits as before without any holdbacks and interruptions.
Features of Grace Period in Health Insurance
Only the policy remains active during the grace period. All other benefits, i.e., coverage and claims, are paused during this 30-day window.
You can think of the grace period as an in-between state where your policy isn't fully active until you pay the renewal amount to “re-activate" your plan.
If you don't pay your premium within the grace period for health insurance renewal your policy will expire and you will have to buy a brand-new health insurance policy. This also means any waiting periods you have completed will be restarted.
Benefits of the Grace Period in Health Insurance
Acts as a Safety Net:
With a grace period, insurance companies are offering you a chance to pay your missed premium without jeopardising your entire health insurance plan.
Prevents Immediate Policy Cancellation:
One of the major benefits of the grace period is that it prevents your health insurance policy from getting immediately cancelled once you reach the due date.
Buying a new health policy can mean higher premiums and restarting waiting periods, and having a grace period can save you from a lot of these stressors.
Improves the Relationship Between the Insurer and the Insured:
The grace period allows the insurer to understand your issue and empathise with it. This creates mutual respect and understanding between you. By offering you the grace period, the company tries to establish that customer satisfaction matters very highly to them.
How Does the Grace Period Work in Health Insurance?
Let's look at how a grace period works with the help of an example:
Suppose you get insurance that covers PED on the 1st of January 2023 (due date January 2024) with a 36-month waiting period and 30-day Grace Period.
Now, you keep renewing the premium every year within the 31st of the same year for two consecutive years in a row.
In 2026, you missed paying your payment on the due date and paid it on the 10th of January 2026.
Because you paid the premium within the grace period, you prevented your health insurance policy from being cancelled.
Since your plan hasn't been cancelled, the 2 years you've held your policy will be counted towards the completion of your waiting period.
If you paid your premium on the 10th of February instead of January 2026, then your grace period will have expired, and you will have lost the continuity benefit and will have to start with the 3-year waiting period all over again.
Disadvantages of Not Renewing Your Health Insurance On Time
Loss of Coverage:
If your policy expires, so does your medical coverage. This means you will no longer be able to raise claims for any of your medical treatments or hospitalisations if you do not renew within the grace period in medical insurance.
Loss Waiting Period:
If you don't renew your policy within the grace period and have completed any waiting periods, you will have to start the waiting period again from the very beginning.
Loss Of No Claim Bonus (NCB):
Any discounts or bonuses like NCBs you've collected will also be cancelled if you let your policy expire past the grace period.
Buying a New Health Insurance Plan is Expensive:
When you fail to renew your health insurance on time, you may have to buy a new health insurance and since you might have lost all NCB that you had collected, you will have to pay the full premium price.
Loss of Portability:
As an insured person, you can change your health insurance provider and port your plan to a new insurer. However, if your existing policy has lapsed, you will not be entitled to carry over any of your benefits to a new insurer.
Health Insurance Renewal During Grace Period
Step 1: Visit the Reliance General Insurance website and click on
Renew Health Insurance.
Step 2: Enter your mobile number or policy number. Log in to access your account, if needed.
Step 3: Click Send OTP (for mobile renewal) or Go (for policy number renewal).
Step 4: Review your policy details and make any changes if required. This is also a good time to apply your NCB discount (if applicable) or increase your health insurance coverage.
Step 5: Choose the option to pay the premium and make your payment. Once your payment is successful, you will receive the policy at your registered email address.
How Does Grace Period Affect Your Claims?
You can not seek claim settlements during grace periods in health insurance. Any claims raised during the grace period without clearing due payments will automatically be nullified or not accepted by your insurance company.
So, if you get hospitalised or get sick during this period, you can not claim any medical cost coverage from your health insurance plan. To get coverage, you must pay your premium within the grace period.
Difference Between Grace Period & Waiting Period
Parameters |
Grace Period |
Waiting Period |
Definition | The time after the policy expiry date when the policy still remains active | The time you need to “wait" before you can get medical coverage from your policy |
Tenure | 15-30 days | 30 days to 4 years, depending on the coverage type |
Claims | Not admissible during this period | Will be approved only for emergencies |
Conclusion
The grace period in health insurance comes with its own set of perks and drawbacks. It is a considerable effort for your insurance company to save your premium from cancellation and for you to pay an exponentially high rate for a new premium. This does not mean you will wait for the grace period to pay your premium since it comes with limited benefits and penalties. Hence, it is important to pay your premium on time to prevent yourself from having to serve the grace period.
Frequently Asked Questions (FAQs)
How do I find out my grace period for medical insurance?
Your grace period is mentioned in the terms and conditions section of your policy. Generally, it commences the day after the last date to pay your premium and lasts 30 days.
Does the grace period apply to the first premium payment as well?
No, a grace period of health insurance only applies to premium payments made after the due date and not on your first payment when buying the policy.
Is a grace period allowed in health insurance?
Yes, IRDAI has made the grace period compulsory, so you will be eligible for one by default. All insurance companies have to provide their customers with a grace period, allowing them time to clear their pending payments.
Can I renew my health insurance after it expires?
Yes, you can renew your health insurance after it expires, but only during the grace period. Policy renewals after this period are not possible, and you will have to buy a new health insurance policy.
Disclaimer:
*T&C Apply. For more details on risk factors, terms conditions, brochure, and exclusions, please read the policy wording and CIS carefully before concluding a sale.