Will my health insurance get cancelled if I pay a premium late?
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Asked June 14, 2015
Insurance companies understand that everyone makes mistakes. Even customers who have had the same health insurance for many years can forget to send in a premium payment, or run into a financial bind those delays getting the payment out. Because of this, most companies will not cancel your policy immediately if you are late with a payment.
What usually happens if you miss a payment is that the insurance company will automatically send you a notice of intent to cancel the policy. This notice does not mean that your coverage has suddenly stopped, it means that you in danger of losing the coverage if you do not make the payment within the time specified in the notice. The time period you are allowed to be late varies from one insurer to another, but usually ranges between 15 and 30 days. As long as you get the premiums caught up during that time, your policy will continue without interruption.
If you do not make the payment during the specified period, your policy will terminate. The insurance company will not usually send you a second late notice, but the coverage will terminate on the date listed in the first notice. If you are not going to be able to make a premium payment in that period of time, contact your insurance company and try to work out a way to work around your delay. Some companies will be happy to work with you, especially if you have had the policy for a long time, while others are only interested in seeing your premiums posted.
If you do lose your health insurance, you may be able to save money on the next insurance by shopping online. Purchasing health insurance through a brokerage or independent agent, such as this website, is often less expensive than buying insurance through a dedicated sales agent. The drawback is that you will have to pay the full premiums, and that could drive up your premiums if your previous coverage was through an employer who paid a portion of each premium.
Answered June 20, 2015 by Anonymous