What happens when there is 'non-payment of premium' in health insurance?

When there is non-payment of premium in health insurance, the most significant consequence is a lapse of coverage and loss of benefits until payments are updated. Health insurance policies are contractual agreements that require the insured to pay premiums to maintain their coverage. If these payments are not made, the insurer is not legally obligated to provide benefits, which means that the policyholder can lose access to essential health services.

This lapse occurs after a grace period defined in the policy, during which the insured may still make payments without losing coverage. However, failure to settle the dues will lead to the policy being terminated, leaving the individual without insurance protections and requiring them to reapply or obtain a new policy, often at a higher cost or with new underwriting considerations.

The implications of non-payment can be significant, as it affects not only financial responsibility but also access to necessary medical care, which can impact overall health outcomes.