Lapse - Health Insurance Definition
A Lapse is that period of time
after your insurance premium is due. Typically,
insurance providers
allow a brief grace period - usually a few days
past the due date for you to pay whatever is due.
Even if you have every intention of paying the
premium at
a later date, a lapse can be very serious for
several reasons.
Once your policy has officially expired, the
insurance company has the legal right to deny
the renewal or to renegotiate your policy. If
your provider is seeking to stop a particular
kind of coverage, you may find that you lose that
coverage if you let your policy lapse. If you’ve
had significant claims on your insurance, the
insurance provider may opt to deny your renewal.
If you are part of a group of insured, you may
not have the opportunity to renew your policy
until the next open enrollment
period - which could mean a long wait for
health insurance coverage.
If you allow your health insurance to lapse -
even briefly - you may have to go through the
certification steps. You could pay a higher premium
than you were paying because you are now older.
If there are pre-existing
conditions, you may find those are excluded
from your new coverage, even if you had been originally
received benefits for that particular health issue. |
