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Policy Renewal | Meaning & Rules

In insurance, a policy is issued for a specific term, such as 1 year or 2 years. Once the term of the policy is over, the insurance cover lapses and the policy terminates. To keep the policy running and the cover active, the policyholder needs to pay the renewal premium on or before the renewal premium due date. The process of payment of regular premiums over time to keep the insurance policy active is called renewal.

In health insurance, renewal of existing policy can be done 45 to 30 days in advance. The renewal premium can also be different from the previous year’s premium. The premium in health insurance increases with time because of the advancement in age and upward revision in premiums by the insurer, if any.

If you have a health insurance policy, make sure you renew it on time to get continued coverage. You can also make some changes in your health insurance policy at the renewal stage, such as the addition or deletion of members or alteration in the sum insured.

 

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