Premium payments, grace periods, & losing coverage
It’s important to pay your monthly plan premium in full to your insurance company — not the Marketplace — by the due date.
If you miss a monthly premium payment
Your health insurance company could end your coverage if you fall behind on your monthly premiums.
Before your insurance company can end your coverage, you have a short period of time to pay called a
A short period after your monthly health insurance payment is due to pay all owed premiums to avoid losing coverage.
Refer to glossary for more details.
.
The premium payment grace period is usually 3 months if you have both:
- A Marketplace plan and use the
A tax credit you can take in advance to lower your monthly health insurance payment (or “premium”). When you apply for coverage in the Health Insurance Marketplace®, you estimate your expected income for the year. If you qualify for a premium tax credit based on your estimate, you can use any amount of the credit in advance to lower your premium.
Refer to glossary for more details.
- Alreadypaid at least one full month's premium during the
A year of benefits coverage under an individual health insurance plan. The benefit year for plans bought inside or outside the Marketplace begins January 1 of each year and ends December 31 of the same year. Your coverage ends December 31 even if your coverage started after January 1. Any changes to benefits or rates to a health insurance plan are made at the beginning of the calendar year.
Refer to glossary for more details.
If you're in your grace period
Pay all your owed premiums to avoid losing your coverage before your grace period ends.
Warning:
Don’t risk losing coverage
If you don't pay all owed premiums, you may lose your coverage dating back to the first month you missed the premium payment. You may also have to wait to get health coverage.
The 3-month premium payment grace period starts the first month you didn't pay, even if you make payments for the following months.
Example of grace period:
You don’t make your premium payment for May. You submit premium payments on time for June and July, but still haven’t paid for May. Your grace period ends July 31, and you don’t pay for May. The plan ends your coverage as of May 31.
Check with your insurance company if they’ll pay for services during the second or third months of your grace period.
If your plan ends your coverage due to non-payment
You don't qualify for a
A time outside the yearly Open Enrollment Period when you can sign up for health insurance. You qualify for a Special Enrollment Period if you’ve had certain life events, including losing health coverage, moving, getting married, having a baby, or adopting a child, or if your household income is below a certain amount.
Refer to glossary for more details.
to enroll in another plan if the plan ends your coverage for non-payment. You'll have to wait for the next
The yearly period (November 1 – January 15) when people can enroll in a Marketplace health insurance plan.
Refer to glossary for more details.
to enroll in Marketplace coverage unless you qualify for a Special Enrollment Period for another reason.
If you lose your coverage before mid-December, you're also not eligible to be automatically re-enrolled for the following year.
At your next opportunity to enroll in a Marketplace plan:
- You may be able to enroll in the same plan later if it's still available (and you're still eligible to enroll in a Marketplace plan when you reapply).
- Whether you choose a new plan or the plan you had before you lost coverage, you must pay your first month's premium to the insurance company to complete your enrollment.
FAQs
If you're in your grace period
What happens to policy coverage during the grace period? ›
An insurance grace period is a designated time frame in which a policyholder can make a late premium payment and keep their coverage in force. During the grace period, coverage remains intact, allowing policyholders to avoid immediate cancellations and legal penalties.
What is the grace period for premium payments? ›
The grace period, means it is a time the insurance provider gives after the due date to pay your premium before the policy becomes inactive. The grace period can differ between insurers and the type of policies. This time frame is indicated in the policy's terms and conditions, usually between 15 days to 30 days.
What happens if premium is not paid within the grace period? ›
If, by the end of the 90-day grace period, the amount owed for all outstanding premium payments is not paid in full, the insurer can terminate coverage. In addition, during the first 30 days of the grace period, the insurer must continue to pay claims.
What is the minimum grace period for a policy that has a monthly premium? ›
Life insurance companies generally offer a payment “grace period" of around 30 or 31 days.
How do grace periods work? ›
A grace period is the period between the end of a billing cycle and the date your payment is due. During this time, you may not be charged interest as long as you pay your balance in full by the due date. Credit card companies are not required to give a grace period.
What happens if premium is not paid? ›
Your insurance will be cancelled if, for whatever reason, you are unable to pay the premium due, even within the grace period offered by the insurer. It also depends on a number of other things, the most significant of which is the kind of insurance policy you have.
What is the maximum amount of time after the premium due date? ›
Most policies have a 31-day grace period after your premium's due date.
Does your insurance become invalid if you miss paying the premium on the due date? ›
If you don't pay by the due date, the insurer will send you a reminder. The policy will stand for a grace period of 15 days to a month. If you still haven't paid, the policy is cancelled. There are things you can do to reduce your premium.
What is the duration of premium payment? ›
The premium paying term is determined by the insurance policy's requirements and the available premium payment modes. These factors might vary. One option is to pay the whole sum all at once, while another is to pay a certain amount every month, quarter, or year, or even over a longer period, say ten or twenty years.
If your insurer agrees to reinstate your car insurance policy after it's been canceled, you will need to pay any outstanding premiums and other fees. You may also need to sign a no-loss statement. If your company won't reinstate your auto policy, you'll need to purchase a new one so you can get back on the road.
How long can you keep premium without paying? ›
Now you can get 3 months of Spotify Premium for free. This special offer is for Premium Individual. Only open to users who haven't tried Premium before.
What is a federally mandated grace period? ›
A grace period is an extension set by state or federal rules that gives enrollees with effectuated coverage additional time to pay the portion of the monthly health insurance premiums for which they are responsible before the coverage is terminated for non-payment of premium.
What is premium grace period? ›
What is an Insurance Grace Period? An insurance grace period is a defined amount of time after the premium is due in which a policyholder can make a premium payment without coverage lapsing.
What is the minimum premium rule? ›
The minimum premium is the lowest premium amount that an insurance company will sell a policy for, in order to cover its costs of covering the policy. In some cases, state laws regulate the minimum premium amount through their department of insurance.
What is the grace period provision? ›
A grace period is an insurance policy provision that allows you to delay payment for a certain length of time without a lapse in coverage. Many types of small business insurance plans offer a grace period of 30 days. However, some policies have a shorter grace period, while others offer none at all.
What happens to policy coverage during the grace period quizlet? ›
What happens if the insured dies during the grace period? The death benefit is still payable; however, any unpaid premium will be deducted from the death benefit.
What will happen if the policy holder dies during grace period? ›
If the policyholder makes the payment and later dies during the grace period, the nominee will have the complete leverage to apply and get the death claim. Insurance policy grace period is variable - The grace period associated with a life insurance policy is not fixed. It depends upon the premium payment modes.
How many days late can you be on insurance? ›
Many insurance companies offer grace periods seven to 30 days after the due date. During your grace period, your coverage remains active, and you can pay your bill without penalties. Be sure to review your policy or contact your insurance company for more information on their late payment policy.
When may an insurer terminate medical coverage during the grace period? ›
If an enrollee fails to pay all outstanding premiums or an amount that satisfies any applicable premium threshold before the end of the grace period: ➢ The insurance company will terminate the enrollee's coverage for non-payment of their premium, effective on the last day of the first month of the grace period.
