Missed your health insurance renewal? Here's the hidden cost beyond money

Missing your health insurance renewal can wipe out benefits, reset waiting periods, and leave you uncovered when emergencies strike

Missing a health insurance renewal can have consequences, experts warn, from losing accumulated benefits to restarting waiting periods for pre-existing diseases. Here’s what policyholders need to know.

Grace period

Most annual health insurance policies come with a 30-day grace period, according to Jitin Jain, business head, health insurance renewals, Policybazaar.com.

 

“If policyholders fail to pay within this period, they lose all accumulated benefits such as No Claim Bonus and credit for completed waiting periods. Some insurers may allow continuation with all benefits, but this is rare and subject to health declarations or additional underwriting,” he explains.

 

Vishal Gupta, chief executive officer, PhonePe Insurance, adds, “While renewing during the grace period preserves policy continuity, any medical expenses incurred during this time are not covered. Coverage resumes only after the premium is paid.”

 

Claims are not entertained during lapses

A lapsed policy effectively leaves the insured without protection. Both experts stress that medical emergencies during a lapse are not covered. Jain notes, “Claims for incidents during lapsed days are not admissible. Reinstatement is at the insurer’s discretion and often requires a fresh underwriting process, which can alter policy terms.”

 

Pre-existing diseases: Waiting periods reset

For pre-existing conditions (PEDs), a lapse can be costly. Gupta explains, “Health policies usually have a 2–4 year waiting period for PEDs. A lapse erases any progress made, forcing the insured to start the waiting period from scratch.”

 

A real-life example cited by Jain highlights the impact.

 

Ankit Jain missed renewing his Rs 15 lakh health cover by five days, beyond the 30-day grace period. His pre-existing condition for diabetes required a 2-year waiting period, which had to restart. Consequently, his hospitalisation for a diabetes complication in August was not covered.

How to avoid lapses

Experts advise several practical steps:

 

• Update contact information with the insurer to receive reminders. 
• Renew early, ideally 45–60 days before expiry. 
• Enable auto-debit or calendar alerts to avoid missed payments. 
• Pay annually if possible, to reduce renewal frequency.

Jain sums it up, “Timely renewal is the simplest way to safeguard your health cover and retain all earned benefits.”