- Understanding Reinstatement Health Insurance
- Reinstatement Vs Renewal
- Process of Reinstatement of Health Insurance
Health Insurance Reinstatement: Overview
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.
What Is Health Insurance Reinstatement?
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.
Grace Period In Reinstatement Of Health Insurance
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.
What is the Health Insurance Reinstatement Process?
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.
When Is Reinstatement In Health Insurance Required?
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.
Reinstatement Vs Renewal of Health Insurance
Renewing a health plan is often considered a better option than reinstatement due to the following reasons:
Hassle-free Renewal
Renewal of health insurance is easier compared to reinstatement as it is quicker and can be performed online within a few hours. A reinstatement on the other hand requires more days, as you have to send a request to the health insurance provider who in turn will check your eligibility and other factors before reinstating your health insurance.No Penalty
Health insurance renewal does not require you to pay an additional fee, whereas a reinstatement of health insurance may require you to pay an additional reinstatement fee or penalty charge.Uninterrupted Health Coverage
Renewal of your health insurance plan means no interruption in your health coverage. Timely renewal and payment of premiums safeguard you from unforeseen medical care expenses. Whereas reinstatement will require additional time leaving you vulnerable to expensive medical bills during that period.
Can The Insurer Cancel Reinstatement?
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:
- Due to non-payment of multiple premium installments or delay in premium payments which leads to your health policy lapse, a health insurer may deny reinstating your health plan.
- In case there has been a change in your health status, i.e. you have acquired a new illness, your health insurer will re-evaluate your policy terms and conditions and issue you a new one. It might not reinstate the same policy as before.
- In case the health insurance provider finds out that you have been engaging in fraudulent activities concerning your health insurance plan, they can deny reinstatement of your health insurance.
Wrapping It Up
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.
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Reinstatement of Health Insurance: FAQs
1. Can a lapsed health insurance policy be reinstated?
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.
2. Can I use the reinstated health insurance plan to cover the same illnesses again?
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.
3. Will reinstatement of health insurance be available if I miss paying my health insurance premiums multiple times?
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.
4. Will I get the same coverage after my health insurance reinstatement?
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.
5. Is there a time limit for reinstatement of my lapsed health insurance policy?
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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Written By: Simran Kaur Vij
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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