Four reasons why you should renew your health insurance policy now

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One of the costly financial mistakes is not renewing your health insurance policy on time. This is because if you don’t renew it on time the policy gets lapsed with you losing out on several benefits. Hence, it is advisable to pay your premium on time before the due date.

Here are four reasons why you should pay your health insurance premium on time:

1) Grace period

This is generally a 30-day window, which is given if you miss the premium payment due date. The catch is in this grace period, the insurance cover is not offered in case of any claim. Hence, it is always wise to renew your policy before the due date.

2) No-claim bonus

For each claim-free year insurance company gives an additional sum insured. This additional amount gets added to the basic sum assured. NCB ranges between 10 and 50% of the basic sum insured given the number of claim-free years.

3) Pre-existing illness

Pre-existing illnesses are covered after a waiting period of 3-4 years. When a policy is taken fresh after it gets lapsed, then the waiting period will start again to get coverage for all pre-existing ailments.

4) Premium

Premium amount is determined based on age and medical history. With an increase in age, premiums also rise. Moreover, in case of a fresh policy medical tests are needed to be done again. In case of unfavourable medical tests, the higher premium gets charged. On the other hand, if the applicant’s medical history is clear, then there will be no loading of premium.

The policy is considered lapsed if it is not renewed within the 30-day grace period window. However, one does not lose any of the benefits, if the premium is paid during the grace period. But remember that hospitalisation during the grace period is not covered.