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The Downside of Missing Family Health Insurance Renewals

Roocha KanadeNov 25, 2025

While one-time pay options are available, most health insurance plans are offered on a subscription basis. This means that medical expenses under the policy will be covered until we make timely premium payments. But what happens if we miss an insurance premium? Most health insurance providers offer a grace period for insurance renewal. You can renew your insurance policy during the grace period to enjoy continuous coverage and benefits. If you don’t renew your policy even after the grace period, it will lapse and may be terminated.

⚡ Quick Summary
Topic	Key Takeaway
Grace Period	Usually 7–15 days (up to 30 for annual payments). Policy stays active, but you can’t make claims during this time.
If Missed	Your policy lapses — you lose bonuses, waiting period progress, and tax benefits.
Financial Impact	Renewing late can mean higher premiums or medical re-checks.
Prevention	Automate payments or set reminders for on-time renewal.

Contents

What Happens if You Miss your Renewal?

If you miss your health insurance renewal date, don’t panic. Most insurers, including us (ACKO), offer a short grace period, up to 7 days, and in some cases, up to 15 days. This window includes weekends and holidays, and your policy generally remains active during this time. But you cannot make a claim after the expiry date until renewal.

However, if the premium isn’t paid even after the grace period ends, the policy will lapse, and your coverage will stop. To avoid any break in protection, it’s always best to renew your health insurance on time.

Grace Period Explained

Grace period is a time when you can still renew your health insurance plan without losing on the benefits. It is usually 15 to 30 days after expiry depending on the terms of the insurance company. However, remember that you cannot claim during the grace period.

Example: Say Priya has a family health insurance plan that insured herself, her husband, and two children. The expiry date of this plan is say 1st June. Then she will get a grace period of 15 days i.e. till 15th June. If Priya renews the plan before 15th June then she will get continued coverage from the day he pays the premium.

But if Priya misses the grace period and does not renew even until 15th of June then she will have to go through the process of buying a fresh policy. This will include medical screening, waiting period reset, higher premium, and loss of other applicable benefits.

Detailed Downsides of Missing Health Insurance Renewals

Here are some consequences you may face if you miss the grace period:

Bonuses will be nullified

Any bonus you have earned will be nullified if you don’t pay your premium on time and your insurance policy lapses. Consider an example where you have made timely payments for three years and have never claimed insurance. In this case, you will have received no claim bonus, which would have reduced your premiums. However, if you miss the grace period for insurance renewal, the no-claim bonus will become zero, and you will have to start afresh.

Waiting period will reset

Suppose your policy has a three-year waiting period for heart problems. Although you have paid premiums and waited for three years until now, missing out even once will reset the waiting period. This will increase the total waiting period before enjoying insurance benefits, especially for pre-existing diseases.

Financial strain

A health insurance policy secures you financially during medical emergencies. If you miss the grace period for an insurance policy, it breaks the coverage, and you must pay all the premiums out of pocket.

Renewal can be expensive

Some insurers allow you to renew your lapsed policy after missing the grace period. However, this comes at additional costs, which can vary from insurer to insurer. Additionally, the no-claim bonus (if any) you lose will cause the premiums to go up.

No tax benefits

Section 80D of the Income Tax Act, 1961, allows deductions on health insurance policy premiums. If your policy is terminated after missing the grace period, you will not be able to claim Section 80D tax-saving benefits.

No portability

Health insurance portability lets you switch to a new insurance company if your current insurer cannot meet your healthcare needs. You need to initiate portability at least 45 days before the renewal date. Thus, if you are in the grace period or miss it, you cannot even port to a new insurer.

When and Why to Re-evaluate Your Plan?

Here are some situations when you must re-evaluate your family health insurance plan.

You are getting married: When you are getting married, looking for a family health care insurance plan that provides coverage for your partner and saves you money during emergencies is necessary.
A new member is added to your family : Having a baby is joyful however, it brings sudden costs for pregnancy care, delivery, and check-ups. Therefore, reviewing your current insurance plan and adding your new baby to your family plan is important.
You switch to a new job or get a raise: If your job gives you a better position or gives you a hike, think about adding extra coverage to your family health care insurance plan. You might also want to incrеasе thе insurancе amount to match your higher income.
You are unhappy with the current insurer: You can switch to a better insurance company if you are not happy with the current one. Go through online reviews and claims experience of customers before switching the insurer.

Checklist on How to Re-evaluate Family Health Insurance Plans

Thеrе аrе a few vital points that you need to keep in mind if you arе looking for stеps for your family health insurance re-evaluation process. Some of them are:

Find a Better Deal: Your needs and what insurance companies offеr can changе ovеr timе. Whеn you first got your insurancе, it may have looked lіkе thе bеst choice during that timе. Howеvеr, as timе goеs, thеrе might be nеw and bеttеr options availablе at a lowеr cost.
Look at Co-Payment: Co-payment is one of the crucial terms and conditions of your family’s health insurance policy. This aspect sets out how much you will pay your insurer, including part of the costs and the portion paid by the provider.
Check Network Hospitals: You might find that there are hospitals near your homes that might increase your convenience during a medical emergency. Check if nearby hospitals are covered under your Family Health Insurance Plan.

Make sure to re-evaluate your health insurance regularly and think through all the details before deciding on a plan.

What Happens When a Policy Lapses?

If your health insurance policy lapses due to a missed renewal, it can lead to major setbacks. You will have to purchase a fresh policy. Any accumulated benefits will be lost, and your coverage will reset to the base level. The waiting period will also reset and you would have to again wait for 2-3 years for coverage for pre-existing diseases or other conditions as per the terms of your fresh Family Health Insurance plan.

3 Benefits of Re-evaluating a Family Health Insurance

Here are 3 benefits of re-evaluating your family health insurance plan.

Save Money: When you review your medical insurance plans for your family, you can discover better options from different companies. It helps you pick a plan that covers your health needs well. The new plan may also cost less.
Check Different Features: By evaluating other insurance plans, you can see what different companies offer. It helps you compare features and find a plan with good benefits and lower costs.
Get More Benefits: Somеtimеs, your current plan might not have all the pеrks othеr insurеrs offеr. For instance, if your plan does not include health chеck-ups, you might find another plan that does without raising the price.

How to Avoid Missing Payments

With the help of digital apps it has become very easy to keep a track of renewals. You can always use the following options.

Reminders: Use reminders on your phone to help you remember the renewal date of your health plan.
Insurance company comms: Your insurance company may send reminders via the following channels.

a. Email

b. Calls

c. App notifications

d. WhatsApp communication

These things help you avoid any delays in renewing your health plan and get continued coverage.

Will Waiting Periods Reset If You Buy a New Policy?

Insurers only consider continuous policy coverage for waiting periods. So, waiting periods will restart if you buy a new policy or don’t renew the existing one on time. Although there is no coverage during the grace period, renewal within this period is still considered a continued policy.

How to Avoid Missing Family Health Insurance Premium Payment?

You can use several measures to manage premium payments for timely renewal, including:

Automate payments

Many apps let you automate premium payments so you never miss a timely payment. For instance, you can automate payments using Unified Payments Interface (UPI) or digital wallet apps like Google Pay, Paytm, PhonePe, etc. Similarly, you can also use your banking application to automate payments with your debit or credit card.

Set reminders

If you don’t want to automate premium payments, you can set reminders. Use digital tools like Google Calendar, Google Keep, Microsoft To Do, and more to set reminders for renewal dates.

Review your financial stability

Regular financial status review is essential to ensure you can afford timely payments. If you are facing any issues, you can schedule premium payments to coincide with your salary dates for better cash flow management.

Benefits of Paying Health Insurance Premium on Time

Below is a list of all the benefits you get for paying your health insurance premiums on time:

Prevents policy lapses

Paying health insurance on time prevents your policy from entering a grace period. Although the grace period allows you to renew your policy without severe consequences, you are not covered.

Retains waiting period and bonuses

If your policy lapses or is terminated without timely renewal, you will lose all the bonuses accrued on your health insurance. Similarly, the waiting period for the new policy will start from scratch.

Avoids the hassle of reapplication

When your policy is terminated, you must reapply to continue coverage. Your insurer might again ask you to go through the entire health check-up and application process.

Chances of reduced coverage

If you have to switch to a new insurer after missing timely payments, your coverage may be reduced, especially for senior citizens.

Example: Suppose you started your health insurance when you were 37 and healthy. In this scenario, there is a high chance that you will get comprehensive coverage at optimal premiums. However, now you are 63, and your health insurance has been terminated. When you try to find a new health insurance policy at the age of 63, you might not get similar coverage options at the same rate.

Conclusion

Getting late on paying your health insurance premiums can have severe implications. You may lose coverage, bonuses, waiting period, etc. It is also equally important to re-evaluate your coverage and plan features so that you get the best family health insurance. Note that, the grace period for insurance renewal offers financial flexibility for renewing health insurance on time. You should proactively manage policy payments by automating them, setting reminders, and reviewing your financial stability.

Frequently Asked Questions

Below are some of the frequently asked questions on Downside of Missing Family Health Insurance Renewals

Can I still claim during the grace period?

No, you cannot claim insurance during the grace period for an insurance policy. Although it allows policy continuation by nullifying all the bonuses accrued, it doesn’t give you coverage.

How late can I pay before the policy lapses?

According to IRDAI’s guidance, insurers offer a grace period of 15 days for monthly instalments and 30 days for quarterly, half-yearly, or annual payments.

Will I need a medical test for reinstatement?

It depends on your insurer and how much time has passed since the policy lapsed. If too much time has passed, reinstating may require a new medical test.

What’s the difference between a reinstated policy and a new one?

A reinstated policy continues similar coverage while keeping your bonuses and other benefits intact. On the other hand, a new policy starts everything, including no claim bonus and waiting periods, from the start.

What factors should I consider when re-evaluating family health insurance?

Important factors to consider whеn rе-еvaluating your family health insurancе include changes in family sizе, health status, coverage requirements, prеmiums, network hospitals, and thе availability of othеr improvеd insurancе options.

Can I add new family members to my existing family health insurance plan during re-evaluation?

Yes, new family members can be added to your existing family health insurance plan.

Do I need to pay any additional fee for re-evaluating my family health insurance plan?

In most circumstances, reevaluating your family's health insurance coverage does not need you to pay any more premiums. Only the premiums for your family's health insurance coverage grow or decrease.

How will I know if I am getting the best deal on my family's health insurance?

In order to get the best deal on your family’s health insurance policy, you can compare your current plan with offerings from other insurers. You must look for plans that provide similar or better coverage at a competitive premium and also consider customer reviews and the insurer's reputation before applying for any family health coverage plans.

Whom I cannot cover under a family health insurance plan?

You cannot cover your grandparents, uncles, cousins, and other relatives under a family health insurance plan. If your parents are above 60 years then they need to apply for a senior citizen insurance policy.