Keeping medical inflation in mind, it is essential to have adequate health insurance coverage to manage your healthcare expenses effectively. If you are concerned about high policy premiums, you can now pay them in easy monthly instalments. Since 2019, insurance companies have been offering health insurance on EMIs to make the coverage affordable for all. While having health insurance is crucial for managing medical expenses, timely premium payments are equally important to avoid a policy lapse. Read on to learn about the potential consequences of missed premium payments.
What happens if you don’t pay your health insurance EMI?
When you buy health insurance, it is crucial to pay policy premiums on time to maintain continuous coverage. If you fail to pay your health insurance EMI, even within the grace period, you may face the following consequences -
No coverage:
If you fail to pay your policy premium on or before the due date, you will be left without health insurance coverage. However, if you pay the missed EMI within the grace period, your health insurance coverage will resume.
Policy lapse:
> Non-payment of your health insurance EMI can lead to a policy lapse. If there is a medical emergency, you will have to cover the expenses from your pocket.
Policy reinstatement:
If your health insurance policy has lapsed due to non-payment of policy premiums, the insurer may allow you to reinstate it by paying the overdue amount. However, this is subject to the insurer's reinstatement requirements.
Loss of benefits:
If you do not pay policy premiums within the grace period, you may lose the no-claim bonuses you have earned on your health plan. Additionally, you may have to purchase a new health insurance policy and serve the waiting period again.
Things to keep in mind when buying health insurance on EMI
In addition to factors like policy coverage, claim settlement ratio, network hospitals, waiting periods, and policy terms, the following are important factors to keep in mind when purchasing health insurance on EMI —
Premium amount:
Select an affordable premium for your health plan. You can shortlist a few policies and compare their coverage and premiums. Before zeroing in on one, calculate the EMI amount to ensure it won't strain your finances.
Grace period:
Remember to check the grace period for premium payments. You must also understand the consequences of failing to pay policy premiums within this timeframe.
Reinstatement process:
Make sure you familiarise yourself with the insurer's reinstalment process. Understanding this will make things easier if you need to reactivate a lapsed health plan.
Conclusion
If you buy health insurance on EMI, it is important to pay the premiums on time to prevent policy lapse and associated hassles. A medical emergency can occur at any time, and insurance companies typically do not cover medical bills during the grace period. Therefore, it is wise to pay the premium amount on or before the due date for continuous health insurance coverage.