What You Need To Know About Grace Periods

​In this modern world, the primary reason for having insurance is the rise in healthcare costs, which can be tough to handle with your funds. While health insurance has several benefits and advantages, it also has some fantastic features that assist policyholders in ensuring their continued protection, one of which is the Grace Period. 

Grace Period in Health Insurance
When it comes to health insurance, a grace period refers to the time or number of days an insured has to pay the premium for their coverage when it is renewed. Typically, health insurance companies provide the client with a 15-day grace period after the premium due date to settle the renewal payment. 

The length of the grace period varies according to the insurance company and the type of medical coverage you purchase. In addition, not every health insurance company is required to provide the advantage of a grace period.

Steps on How to Renew a Lapsed Health Insurance Policy on Time
For the renewal of health insurance, policyholders have a grace period during which they must pay the premium, plus interest and penalties, within the time frame. It can be done both online and offline. 

Step 1
Go to the insurer's official website.

Step 2
Access your account by logging in.

Step 3
Select a payment method for the premium.

Step 4
Make the policy premium payment.

Limitations of Not Paying Your Premium on Time
There are various effects of not paying your health insurance payments on time. Here is a list of some disadvantages that will help you understand why a grace period is essential in health insurance:

1. No Coverage Benefits
   The policyholder will be unable to use any of the policy's benefits if they do not pay the health insurance premiums. If you submit a claim within this period, it will be denied.
   
   
2. Loss of Waiting Period
   Pre-existing sickness and critical illness waiting periods are typical in health insurance plans supplied by health insurance firms. If you do not pay your premium on time, the policy's terms and conditions will require you to repeat the waiting period.
   
   
3. Loss of No Claim Bonus (NCB)
   Insurance companies reward policyholders who do not file claims during the coverage period. The No Claim Benefit is the name of this bonus, and you may lose it if you don't pay your insurance premium on time.

Reminder
When it comes to a medical crisis, not renewing your health insurance policy or paying your premium rate can be inconvenient. If you have a pre-existing condition, getting a new health plan may be difficult, and you will have to begin the waiting period all over again. 

At Insurance Agency Network, we put our clients first by offering them policies that they can afford. Insurance is a necessity nowadays, and we're here to help you. Learn more about our products and services by calling our agency at (425) 448-9190. You can also request a free quote by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!