Health insurance companies come up with an array of plans designed to meet individual requirements. These days, health insurance industry sees a large number of people entering under benefit coverage. With this overwhelming surge, companies also include new plans and policies to give the best benefits to the customers. But there are also terms and conditions imposed by companies as well as regulatory authorities that can cancel your policy. Every company mandates a few things that you need to maintain throughout your policy tenure.
Cancellation of a health insurance policy is something that should be avoided. You must read the fine prints of a health insurance policy where you are aware of the exclusion of the policy. The content discusses the facts that prompt your company cancel your policy.
You fail to pay the premium on time:
This is the main reason behind the cancellation of your policy. Each company has come up with a certain time period within which you need to pay the premium to the company. If you exceed the time stated in your policy term for the payment, you may earn the grace time that would be the final chance to renew the policy.
This grace time duration also differs according to which type of policy you purchase. Failing to pay the insurance premium does nothing but cancelling your policy and putting your health at danger in future.
You falsify the Truth
The statements furnished by you in the insurance policy must comply with the truth. Companies have the right to turn down your claim or policy when they discover that you falsify the truth. Do not hide anything about your health on the policy paper and honestly write down if you have severe diseases.
You ignore telephone calls
Your insurance company may call you regarding your claim. It is always advisable to attend the call whenever you get, especially when it is a case of emergency. Before giving you the final amount, the insurer varies that the claim comes under their policy area.
When an insurer cancels your insurance policy, there must be one of the reasons stated above. Besides this, there are a few things you need to consider while dealing with the cancellation of your health insurance.
You can ask your company to verify the terms and conditions of cancellation if the policy is rejected unlawfully.
The termination of a health plan due to non-payment cannot give you a special enrollment period.
What happened when your policy gets cancelled?
When your health plan is rejected by companies, you also lose the coverage benefits putting your health in danger. It is also termed as a financial loss because the purchase amount and the premium you paid will not be refunded to you. Always try to avoid the cancellation due to non-payment as it loses your health coverage as well as an array of benefits you are investing on.