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What Is Grace Period In Health Insurance?

Unravel the concept of a grace period in health insurance, its significance, and how it can provide you with valuable coverage even when you miss a premium payment.

  • 25 Oct 2023
  • 3 min read

In medical insurance, grace period is an extension provided to pay your policy premium. It is typically a few days after the policy renewal due date.

Here, we will elaborate on what grace period is in health insurance and how it works.


Meaning of grace period in health insurance

Your medical/health insurance grace period is the extra time you get if you missed paying your renewal premium by the due date.

Failure to make the payment even after the grace period can result in your mediclaim policy cancellation or claim denial (if the claim is made after the renewal date). Most health insurance plans come offer a grace period of 15-30 days.


How does a grace period work in health insurance?

A grace period grants you extra time to pay your medical insurance premium in case you aren’t capable of making the payment within the due date owing to an unforeseen situation.

Many insurers provide a grace period of 15 days for the payment of health insurance renewal premiums. However, there are also different insurance companies that provide a grace period of 30 days.

The period of grace duration can vary depending on the insurer and the sort of healthcare coverage you purchase. Furthermore, it isn’t mandatory for each insurance provider to offer the advantage of a grace period.

Therefore, talking to your insurer and clarifying doubts is better than losing out on any benefits because of being in the dark. Read the fine print of your policy wordings to see if a grace period is offered. The length of this period would also be mentioned in the policy wordings.

Also read:

Is the meaning of grace period and waiting period the same thing?

No, the grace period for your health insurance is not the same as the waiting period. Waiting period denotes a fixed length of time after policy issuance, during which you cannot raise a health insurance claim for treatment. This is usually 30 days. However, this applies only to planned medical treatments. In case of accidental/emergency treatment, you can raise a claim with your insurer even during the waiting period.

The grace period, on the other hand, allows you to pay your health insurance renewal fee after the due date has passed. For example, if your health insurance policy renewal payment is due on January 1, 2022, you can pay it until January 31, 2022, if you have a 30-day grace period. If you do not pay by the stipulated date, your insurance will lapse, and your insurer may start a fresh policy issuance process with a health check-up if required.



Late payments on your health insurance premiums, as well as failing to renew your coverage during the grace period, may be inconvenient and costly. Claims may not be processed during this period and you lose the continuity benefits.

If you have any pre-existing clinical conditions, purchasing a new healthcare plan will be difficult, and you will have to restart the waiting period.

So, pay your health insurance policy renewal premium on time to enjoy continuing coverage advantages and prevent jeopardising them. Even if there is a grace period, do not postpone payment unless there is an emergency.

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