Say, you have a health insurance policy, and its renewal is due often. Would it not be a hassle? To avoid this stress of renewal within the timeline of the policy getting lapsed, every insurance company provides a grace period. A grace period is a time during which you can pay the premium of your health insurance policy after the renewal due date. Hence it is ideal to purchase a health insurance plan that offers you a maximum grace period as that way you can get more time to renew your health insurance policy even after the due date. Making it a stress-free experience for you.

How Does the Grace Period Work?

Grace period generally differs across insurers however it is typically ranging between fifteen to thirty days. Nevertheless, it is imperative to read the terms and conditions of your health insurance policy carefully including renewal and grace period. Every health insurance policy offers a grace period which is the extra time given in case you miss the health insurance policy renewal premium due date. So, failure to make such payment in the grace period can lead to your Mediclaim policy cancellation or even penalties. The terms and conditions of health insurance plans generally also specify the validity of No Claim Bonus (NCB) during the grace period and if any claims shall be approved or rejected if the insurance premium is yet to be paid.

Let’s take an example to understand better. Say, if your Mediclaim policy renewal is due on 1st February, you can pay the premium to the policy until 28th February in case the grace period is a month. If you fail to make this payment, your policy shall lapsed and the insurance company can even deny your renewal request if you want to make the payment later on. So, make sure you adhere to the timelines of your health insurance including the grace period given.

Keep in mind it is ideal to renew your health insurance policy in time to enjoy uninterrupted health insurance coverage benefits. Make sure not to wait for the grace period too, instead, renew your policy before the due date. Cause remember there is no coverage or claim during the grace period. Insurers provide coverage on payment of premium, so if that is delayed so is the coverage and claim. Another reason to ensure timely premium payment is that the insurance company can choose to deny the renewal of your health insurance policy after your policy lapses. This may force you to purchase a new health insurance plan, which may come for a higher premium or also lead to the loss of accumulated coverage benefits, like the no claim bonus (NCB). 

Also, in case your health insurance policy lapses, the waiting period for any health condition, other continuity benefits or specific illness shall be lost. Then, your waiting period shall restart from scratch as you end up purchasing a new policy. Now, in case you purchase a new health insurance policy after your policy lapses, you shall have to wait longer to file a claim for pre-existing diseases, as most health insurance plans cover pre-existing diseases after a waiting period. So, as per the new policy terms and conditions, only after the completion of the waiting period, your pre-existing diseases will be covered. Thus, causing you a delay. 

In some cases, the insurance companies also charge a late fee for not paying the insurance premium before the grace period. If policyholders frequently miss policy renewal dates, the insurance companies charge them a higher premium on renewal. Additionally, if you have a past record of missing policy deadlines you may be refused coverage from any other insurance company as well. So, it is essential to make your payments on time and save yourself from such disadvantages.

Effect of the Grace Period on Claims

Health insurance companies allow payment of premiums within the grace period to make sure that your health coverage remains continuing even if you have paid late. And once you have paid the renewal premium you can file a claim during the grace period in case of any medical emergency. In the absence of a grace period, your insurer can deny the coverage for missing your renewal date premium payment. In such a case, you shall not be able to file a claim even if you make the premium payment on the next day of your due date. So, now if a health emergency arises that requires hospitalisation or treatment after you missed your policy premium payment during the grace period, you shall not get any coverage whatsoever. 

As, once you miss paying in the grace period as well, the health insurance provider shall cancel your policy altogether. In such a case, you end up purchasing another health insurance which may be costlier and you shall lose all the benefits like NCB. Even your records will capture your missing renewal dates. Insurance companies generally do not sell health plans to someone with records of frequent missed payments.

Differences Between Grace Period and Waiting Period in Health Insurance


Grace period

Waiting period


Is the period provided to pay missed renewal premium payment before policy can get lapsed

Is the period provided before coverage for emergencies of critical illness, maternity and pre-existing diseases

Applicable to

Is applicable to all health insurance plans

Is only applicable to specific conditions such as maternity or critical illness


Lasts for a shorter period of 15-30 days

Lasts for a longer period like 2-4 years depending on the health insurance provider


Carries late fee or penalty

There is no late fee charge or penalty


Health insurance provider may reject claims for all types of treatments

Health insurance provider may reject claims only for maternity or pre-existing illness


Here you get an extra number of days to pay your health insurance renewal premium even after your due date has passed

Here, you need to wait for a fixed duration before filing for a health insurance claim


Understanding how grace period works for your health insurance plan, make sure to not miss your renewal premium payment. Remember, late payment of your health insurance premium and failure to renew your policy during the grace period can cause inconvenience and huge challenges of starting all over. So, ensure you pay your health insurance policy renewal premium on time and enjoy continuous coverage benefits without any risk. Even if there is a grace period provided, do not delay the payment unless there is a genuine emergency.

FAQs – Frequently Asked Questions

Let's take a look at some frequent queries on Grace Period in Health Insurance Policy;

Q1. What if after missing renewal premium payment I miss the grace period as well?

If you miss to renew your health insurance policy in the grace period as well, your policy shall be lapsed. You shall also lose out on benefits like No Claim Bonus (NCB), the waiting period for pre-existing conditions and medical check-ups. Eventually you may have to purchase a new health insurance policy which may have a higher premium and you shall also come in the records for missing payment. Health insurance companies do not provide coverage to individuals with frequent renewal or payment missing records.

Q2. Can the premium be paid after the grace period gets over?

No, upon expiry of the grace period, the policy shall lapse and you will not be able to renew the health insurance policy. However, depending on the insurer, you can get one chance to revive the lapsed health insurance policy by immediately paying all the penalties and the accumulating premiums.

Q3. What is the grace period duration in health insurance policy generally?

Actually, depending on the type of insurance policy and your insurance provider, the grace period can vary between 15-30 days. It is essential for you to read the terms and conditions of your health insurance policy carefully.

Q4. Can the health insurance premium be paid in advance?

Yes, the health insurance premium can be paid in advance. And based on the request, your insurance policy start date can be revised. However, it is advisable to renew the health insurance policy within the due date to avoid any rejection of claims.

Q5. Does health insurance remain active longer?

The health insurance policy from all insurers remains active until the renewal date. A grace period is given by the insurers to pay the premium and then continue to enjoy the health insurance policy benefits. However, during the grace period, any claims raised can be rejected. Only upon timely payment of the premium, the health insurance policy is activated and you can continue to enjoy its benefits.

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