What Happens If I Don’t Pay the Health Insurance Premium?

Health insurance is a contract between a policyholder and an insurance provider where the insured agrees to pay premiums on time and in return the insurer agrees to offer health coverage. This indicates that you need to pay the premium on time to keep the policy active. But with your busy professional and personal life, you may miss your health insurance premium payment date. So what happens if I don’t pay the health insurance premium? Let’s check it in this article.

Health Insurance Premium- Overview

Your health insurance premium is the monthly fee you pay for your plan. It’s almost like a subscription fee: you pay a premium regardless of whether you use health services that month or not. As with all accounts, it is important to pay premiums consistently and on time.

Many people have health insurance through their employers. In this case, their insurance premiums may be deducted directly from your paycheck. This means you don’t have to think about paying the insurance premium. Otherwise, you have to pay the premium every month just like any other bill. Depending on where you get your insurance, you may need to go to the insurance website and submit payment. What happens if you don’t – or can’t – pay your premiums on time?

What is Grace Period in Insurance?

Insurance providers have a grace period, usually 7-15 days, after the premium payment date. If you haven’t paid your health insurance premiums before the due date, you can pay them during the grace period so that your policy doesn’t lapse. Please note, however, that the grace period includes both working and non-working days.

Non- Payment of Premium may result in loss of policies

Paying premiums on time is just as important as taking out health insurance. When purchasing insurance, choose the premium frequency that suits you from monthly, quarterly, semi-annual and annual options.

Will the premium be lost if I don’t pay?

A missed payment does not necessarily mean you will immediately lose your insurance. The first time you miss a payment, you will likely have a grace period. This means that your insurance company will give you a certain amount of time to make the payment. The usual grace period is 90 days

If you do not pay each missed premium within 90 days, your insurance company may terminate your coverage. This has several major implications:

• You will not be able to use your premium insurance plan for future services
• You will retroactively lose coverage for any services you received during the grace period
• You will not be able to re-enroll in this plan until the next open enrollment period (because the loss of coverage due to non-payment does not count as a qualifying life event).

How do I get my insurance back?

If you lose your health insurance because you haven’t paid your premiums, there are two key things you need to know. First, you can appeal your insurance company’s decision if you think their decision was wrong. This means that you present the paperwork (including proof that you have paid the premiums) and ask them to reconsider their decision.

Second, you can get new insurance. This may mean waiting until the next open enrollment period (which usually starts in November). You may be eligible for certain insurance programs, such as Medicaid. If you want, you can sign up for Medicaid at any time of the year.

Reinstating Policy

• The insured will need to provide proof of continued insurability. These documents differ for individual insurers and also depend on the time that has passed. Second, revival can happen at any time, but the condition for revival may depend on how long your policy has lapsed. According to insurance laws, if your policy is in force for at least three years, insurers will give you two years to revive your policy by paying the premium owed and penalty interest, which can be 12-18% of the total premium. But the longer you put off reviving your policy, the more difficult it can be. However, if you renew within six months of its expiry, the renewal process is simple.
• If the insurance company deems it appropriate, the insured may be required to undergo a medical examination. After successfully fulfilling these conditions, the insurer will decide whether your policy is eligible for renewal or not.

How can I avoid missing payments?

Losing your insurance due to missed payments is not ideal. Your best bet is to be proactive to avoid missed payments.

Here are some tips to help you pay your premiums on time:

• Place reminders on your phone or other devices to remind you to pay 
• Set up automatic payments on the insurance company’s website for automatic payments.

Some tips to help you afford monthly payments every month:

• See if you qualify for a premium discount, which lowers the cost of your premiums based on your household income
• Check to see if you qualify for Medicaid, which may provide a low-cost or free insurance plan
• Choose a plan with a lower monthly premium (but be aware that this may be offset by higher out-of-pocket costs)
• Talk to your insurance company representative and ask for more help with paying your premium. That way, you can keep the health coverage you deserve.

Final words

If your life insurance lapses due to some unavoidable circumstances, it doesn’t have to be the end of the world. Many companies offer the option to revive a canceled policy within a certain time frame.

However, this process could be more expensive and involve an additional medical examination and/or a fine. Although the renewal of a lapsed policy may vary from insurer to insurer and depends on the lapsed time, type of product and insurance price, etc. that the policyholder can apply for.