What is break in Insurance? Is there any grace period? what is the effect of break?

What is break in Insurance? Is there any grace period? what is the effect of break?

👉 When the Health Insurance Policy is not renewed on time it is called in break in Insurance. There is a grace period of 30 days to retain this continuity as per policy terms.

👉 The effect of break in Insurance is as follows:

1. The continuity of the policy will be lost.

2. Any cumulative bonus earned will be lost

3. Any No Claim Discount earned will be lost.

4. Any illness contracted during the policy period that was not renewed will become pre existing illness.

5. Policy will be treated as fresh for the purpose of providing risk.

6. First 30 days exclusion for illness will be applied

7. 1st , 2nd , 3rd & 4th year exclusions if any will be applied as per policy terms

8. In case there has been any major illness during the expired Policy period Eg. Heart Diseases, Tumor etc, getting a new policy from an Insurance Company will become either very difficult to get a policy again or getting denied.

9. Keeping track of your policy expiry date is not only the job of an Insurance Advisor but also your responsibility.

10. Ultimately if sufficient Health Insurance doesn't come to the rescue in terms of claim during break in insurance, it indirectly means that

A) All Your savings will start eroding
B) All Your assets may have to be sold if any critical/recurring illness strikes
C) You may have to get into more debts
D) If major illness strikes , no body will lend you as you may become jobless
E) Problems multiply if you are the only income earner in the family ,etc etc

Think wisely and save yourself & your family smartly 🙏🙏🙏