Imagine, you sit down to watch your favourite OTT platform and your subscription has ended because you forgot to recharge it on time! The good news is, it’s just OTT and you can recharge your subscription within minutes without affecting your life.
However, we can not say the same for health insurance!
If your health insurance renewal is missed, your health plan benefits are lapsed, exposing you to unforeseen medical expenses. So, what is the next step? In this situation, health insurance reinstatement is your solution. In this article, you will learn about the reinstatement of health insurance in detail.
Reinstatement of health plan refers to restoring your health policy along with your coverage terms and conditions after the current health plan has lapsed due to non-payment of premiums on time. Furthermore, health insurance providers offer a grace period to pay health insurance premiums during which you can safeguard your health plan from lapsing.
If you fail to pay health insurance premiums during your grace period, you can pay off your outstanding premiums and reinstate your health insurance plan.
The grace period refers to the period after the premium payment date before the health plan becomes inactive provided by your health insurance providers. Depending on your health insurance provider, it usually varies between 15 to 30 days.
A grace period allows you to renew your health insurance timely, saving you from an inactive health plan and leaving you vulnerable. Your insurance provider also sends reminders to renew your health plan on time, multiple times.
It is a simple and efficient process to reinstate your health insurance policy. In case of policy lapse, you have to inform your health insurer and request for reinstatement of your health plan.
Based on your request, the health insurance provider will evaluate your eligibility, coverage terms, and current health status, and may ask you to pay a certain reinstatement fee or penalty.
Healthcare costs are increasing all over the globe. In India alone, medical inflation stands at 14%, the highest among the Asian countries. It can get worse in case of a life-threatening ailment such as cancer, heart ailments, nervous system disorders, and more.
In case your base sum insured runs out before you renew your health insurance policy, you will be left vulnerable in the face of unforeseen medical emergencies. Reinstatement of health insurance is your saving grace in such a situation. In simple words, when the base health insurance plan is exhausted, reinstatement of health insurance is required.
Renewing a health plan is often considered a better option than reinstatement due to the following reasons:
There are various reasons why your health insurance provider may cancel the reinstatement of your health insurance plan. We have listed a few for your better understanding:
While multiple health insurance terminologies may sound confusing, understanding the actual meaning will help you to understand your health plan better. Reinstatement of health insurance is one such feature that is essential to know. Reinstatement of health insurance helps you when you miss out on paying multiple premiums and there is a policy lapse.
To learn about health insurance policies and such important terms related to them, give PolicyX insurance experts a quick call today.
Yes, a lapsed health insurance plan can be reinstated easily, however, you will have to pay a reinstatement fee or penalty as per the health insurance provider.
Yes, a reinstated health insurance policy can be used to cover the same illnesses up to the specified sub-limits mentioned by the health insurance provider.
Yes, a health insurance reinstatement is available for a lapsed policy wherein you have missed multiple premium payments. However, you may have to clear the outstanding premium payments, along with paying an additional reinstatement fee.
Yes, for most health plans, the coverage provided will be the same after reinstatement of health insurance. However, certain factors may affect your coverage post reinstatement of health insurance like, plan variant, your current health status, information provided to the health insurer, and more.
There is no fixed timeline per se for a reinstatement of health insurance policy. However, many health insurance providers, allow reinstatement of a health plan within 6 months of your policy lapse.
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Simran is an insurance expert with more than 3 years of experience in the industry. She may have all the answers to your insurance queries. With a background in Banking, she proactively helps her readers to stay on par with all the latest Insurance industry developments.
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