Hassle-Free Health Coverage: Termination of a Policy

Your insurance company can terminate your health insurance coverage if you fail to pay a premium before the end of a grace period. It won't affect any claims that you incurred before your coverage ended, but it will terminate your coverage on the original due date of your premium. Any claims that you make during the grace period will not be covered.

For example, you failed to pay your premium due February 15. On March 15, your coverage terminated for nonpayment of premium. You were hospitalized in January, submitted a timely notice of claim, and furnished proof of loss on April 1 (within the 90 requirement). The claim for the hospital expenses is covered.