Just like picking out the right school to receive the best educational foundation or selecting the perfect neighborhood to purchase a home, having the right health insurance is vital to experiencing the optimal in health. No one plans to get sick or hurt, but when life happens you want to be prepared with an insurance policy that best meets you and your family needs. And let's face it, with the cost of medical expenses continuing to rise it is becoming more of a necessity now than ever to have an active insurance policy as protection for your finances, as well as maintaining your health through preventive care, screenings, and check-ups.
What Is Your Health Insurance Grace Period?
What happens if you choose the perfect policy, but am unable to keep up with the monthly maintenance fees or what is called your insurance premium due to a financial hardship? Health insurance companies actually have your back by offering an additional layer of protection to you and your family through what is known as a health insurance grace period. A grace period can be described as the period of time after you have missed payment for your insurance premium in which you, the policy holder, can make a payment before the policy lapses or cancels.
How Long Does A Grace Period Usually Last?
This 24 hour to 30 day time period is decided by each health provider, with the length of the time period varying due to the company's individual rules and regulations regarding policy procedures and state laws. The length of the health insurance grace period can also vary depending upon the type of policy the holder has agreed to.
Reaching The End Of Your Grace Period
It begins on the due date of the missed premium and ends when the allotted amount of days has passed, which is usually 24 hours to 30 days, as per your agreement with the insurance company.
Does Everyone Get A Grace Period?
Everyone may not be eligible for a grace period, it really depends on the company and plans you enroll with. As previously stated the grace period is considered an additional layer of protection for you and your family. With life's many changes it is very easy to see how a payment could be missed due to hospitalization, going on vacation, or simply changing addresses by moving from one residence to the next. Therefore, the grace period is for everyone, helping to create fairness among both parties and upholds important and ethical business practices within the insurance field. This is created by giving the policy holder a period of time, or grace period, where they can become current on premiums leading to the reinstatement of health insurance policy.
Reinstatement Of Health Insurance Policy
The health insurance grace period is also extremely beneficial to the insurance company itself, preventing the policyholder to have to go through the underwriting process again for the reinstatement of health insurance policy. Underwriting can be a very timely process for the insurance company, especially if the policy holder's medical conditions have changed dramatically since the grace period took place due to seriously illnesses including, HIV, cancer, a heart attack, stroke, etc. Additionally, the above mentioned factors can play a major role in denial with the reinstatement of health insurance policy due to the risk factors the insurance company may have to incur.
Policy holders may also find themselves being denied by various insurance companies when shopping around for new insurance policies due to their history of non payment during this health insurance grace period. If the health insurance grace period has lapsed and the policy holder would like to continue their coverage, the insurance company may even require a larger down payment for renewal of coverage.
Extend Your Grace Period With First Quote Health
If your current health insurance plan doesn't come with a grace period, you may want to explore other options. Grace periods can be a lifesaver in the event you fall behind on payments, or something else comes up. First Quote Health can help you find a more affordable health insurance plan that provides better coverage and comes with an extensive grace period. All you have to do is fill out your zip code to get started. Get a no-obligation health insurance quote within minutes, and enjoy the peace of mind that comes with a grace period today.