Missed Due Date of Insurance Premium? Here is what to do

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Insurance premium

There may be many things on your mind making you miss the due date to pay the health insurance premium. It may be busy with work, don’t have the budget to pay the premium, family commitments, health issue etc.

This can be a costly mistake because if you don’t renew your policy on time, you can lose out on several benefits.

Consequences of Missing Health Insurance Premium

  • It will render coverage inactive– On timely renewal can keep the health insurance coverage active. When you miss a renewal of a health insurance policy, it makes the coverage inactive, and you will have no other option but to pay for the medical expense from your pocket.
  • It will affect waiting period– if you miss renewal date too, then you will need to finish the waiting period again. This is because under health insurance policies pre-existing ailments are not covered until 2-4 yers of continuous coverage.
  • Loss of no claim bonus– If you miss the renewal date too and your policy lapses then the no-claim bonus will not be paid to you, which can be anything between 5 to 50 percent of the sum assured depending on your policy. No claim bonus is the certain percentage of the sum insured that a health insurance company gives you as a reward for every claim free year. The percentage depends on company to company but this sum insured generally increased generally by 5 percent for every claim-free year up to a maximum of 50 percent.


  • Renewal Notice– The Insurance Regulatory and Development Authority of India(IRDAI) asked all insurer last year to send a renewal notice one month before the expiry of the policy.. The notice also need to mention the premium amount due.
  • Renewal/Grace Period– If you have missed the premiums by the due date, use the grace period to complete the payments and continue the benefits of the policy without any lapse.

How to Renew you Policy

  • Through App
  • Through Insurer’s Website
  • Through offline via agent
  • Through Branch

Documents Required for Renewal

  • KYC Documents
  • Proof of identity
  • Proof of Age
  • Proof of Address
  • Your previous policy report
  • Your medical report(Good health declaration in case of Health insurance)

Frequently Asked Questions(FAQ)

1. What happens when a premium is not paid for term insurance?

Ans– Under a term insurance policy the policyholder is not under any obligation to pay the premium, unlike a credit card repayment or a bank loan.

2. Is there any Legal Action against not paying premium?

Ans- If you do not pay a insurance premium, there will be no legal action taken against you. However, the policy that you took will simply get lapsed.

3. What is Grace Period?

Ans- Time period given for premium payment after due date of premium payment.

4. Duration of Grace Period?

Ans- 7 to 30 days based on insurer.

5. Does grace period affects credit score?

Ans- Yes, If you are late with your car insurance, utility bills, or other payments, they may eventually go to collections. When that happens, it can make a negative mark on your credit score. That can affect how easily you qualify for loans, credit cards, and other credit products

6. Can pre existing conditions be denied?

Ans- Health insurers can no longer charge more or deny coverage to you or your child because of a pre-existing health condition like asthma, diabetes, or cancer, as well as pregnancy. They cannot limit benefits for that condition either. Once you have insurance, they can’t refuse to cover treatment for your pre-existing condition.

7. What does lapsed policy mean?

Ans– A life insurance lapse occurs when you stop paying your policy’s premium and the grace period has expired. If life insurance expires then you loose your coverage.

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