How long does the grace period for insurance last?

The grace period usually lasts 24 hours to 30 days to renew your health insurance policy.

What if I do not renew my policy even during the grace period?

Not renewing your policy even during the grace period will lapse your health plan and you will have to buy a new one.

Is the waiting period same as the grace period?

No, the waiting period refers to the period you have to wait before making an insurance claim. The waiting period is usually applied to pre-existing health concerns. Whereas, grace period refers to the extended time that you get to renew your health insurance plan.

Is 30 day grace period compulsory for all health insurance policies?

The grace period allowed depends from insurer to insurer and the policy. Usually, the grace lies between 24 hours to 30 days.

Do health insurance policies come without a waiting period also?

No, the insurance regulator of India has made it mandatory for the insurers to provide a maximum 30 days waiting period for the policyholders to renew their policies.

Written by Simran Kaur Vij

Published: 13 Aug 2024

Updated: 27 May 2026

4 min read

Expert Verified

IRDAI Licensed

Grace Period in Health Insurance

Health insurance has become an essential aspect of financial planning today. This is primarily due to rising healthcare expenditures, which can be difficult to manage with personal savings. While health insurance offers numerous benefits, it also includes features like the Grace Period, which helps policyholders maintain continuous protection.

Let's discuss how it works and other important points.

What is the Grace Period in Health Insurance?

Grace period in health insurance refers to the time or number of days during which an insured must pay the premium for their health insurance policy at the time of renewal, even if the due date has passed. Typically, health insurance companies provide a 15-day grace period beyond the premium due date for policyholders to make the renewal payment. However, some insurers offer a 30-day grace period. If the policyholder is unable to pay the premium within the grace period, the insurance company can reject the health insurance renewal application, even if the policyholder attempts to pay the premium after the grace period. However, it's crucial to note that during the grace period, coverage is typically suspended. Claims for medical emergencies arising during this period will only be honored if the premium is paid before the grace period expires. Additionally, waiting periods for certain specified illnesses listed in the policy document may restart if the premium is not paid on time. Therefore, it is crucial to pay your health insurance premium promptly.

How Does the Grace Period in Health Insurance Work?

It is important to pay all outstanding premiums during the grace period for the continuity of your health coverage. The insurance company offers a grace period to ensure you don't miss the premium payment, even if you forget the due date. For a better understanding of the grace period in health insurance, read the example below: Suraj has a health insurance plan that expires on February 10, 2022, and he missed the due date to pay the premium for his health insurance plan. Then, the insurance company provides a 15-day grace period to pay the premium. Thus, the extended due date for Suraj to pay the health insurance premium will be February 25, 2022.

Note: During the grace period, coverage is typically suspended. Claims for medical emergencies arising within this period will only be honored if the premium is paid before the grace period ends. If the premium is not paid, the policy will lapse, and all No Claim Bonus (NCB) and accumulated waiting periods for pre-existing diseases will become invalid.

How to Renew/Revive a Lapsed Health Insurance Policy on Time?

Policyholders have a grace period for the renewal of health insurance, during which they must pay the premium to avoid policy lapse. Renewal or revival can be done online or offline. Here are the steps to renew or revive your health insurance plan:

Visit the official website of the insurer.
Log in to access your account.
Choose the payment option to pay the premium.
Complete the premium payment.
The insurance company will send the policy document to your registered email address.

Disadvantages of Not Paying the Premium on Time

There are several disadvantages to not paying health insurance premiums on time. Here is a list of some disadvantages that explain the importance of a grace period in Health Insurance:

No Coverage Benefits: If the policyholder does not pay the health insurance premiums, they will not be able to use any of the policy's benefits. Any claim filed during this period will be rejected.
Loss of Waiting Period: Waiting periods for pre-existing diseases and critical illness are common in health insurance plans offered by health insurance companies in India. If you don't pay your premium on time, you will have to complete the waiting period again according to the policy's terms and conditions.
Loss of No Claim Bonus (NCB): Health insurance companies offer bonuses for not filing any claims during the policy period. This bonus is called the No Claim Bonus. By not paying the policy premium on time, you will lose the existing No Claim Bonus.
Lapse of Medical Check-Ups: Health insurance companies offer medical check-ups after a specific waiting period. However, if you do not pay your premium on time, you will lose your medical check-up benefits and have to wait until the insurer offers it again.
Renewing a Lapsed Health Insurance is Expensive: Once the policy lapses, you will need to buy a new health insurance policy. By purchasing a new policy, you will not only lose any NCB that you may have earned but the premium of the new health policy will also be higher.
Loss of Portability: Policyholders can change their existing health insurance policy from one insurer to another. However, if you do not pay your premium on time and the policy lapses, you lose portability benefits.

How Does the Grace Period Affect Health Insurance Premiums?

Some insurance companies may charge a late fee if you miss your premium payment due date and choose to pay during the grace period. If you consistently miss health insurance premium due dates, insurance companies may charge a higher premium at the time of policy renewal.

How Can the Grace Period Affect Claims?

During the grace period, your health insurance coverage is typically suspended. This means that if a medical emergency occurs and you file a claim before paying the overdue premium, the claim may be rejected. Coverage is only reinstated, and claims for the grace period are honored, once the premium is successfully paid within the grace period. If the premium is not paid by the end of the grace period, the policy will lapse, and no claims from that period will be covered.

Difference Between Grace Period and Waiting Period

The grace period and waiting period in health insurance are different from each other. To understand the difference, refer to the table below:

Grace Period	Waiting Period
Applicable to all health insurance coverage.	Applicable only in specific conditions like critical illness, maternity, pre-existing illnesses, etc.
A short period, typically 24 hours to 30 days.	A longer period, up to 3 to 4 years, varying by insurer.
Late fee or penalty may be applicable.	No penalty or late fee applies.
The insurance company might reject claims for all types of treatment.	Claims are approved for treatments other than specific conditions like maternity, pre-existing conditions, etc.

Conclusion

Not renewing your health policy or making late premium payments can cause inconvenience at the time of medical emergencies. If you have any pre-existing condition, it will be difficult to get a new health plan, and you will have to restart the waiting period.

So, you must pay your health insurance policy premium on time to ensure continuous coverage benefits. Even with a grace period, avoid delaying payment unless absolutely necessary.