What is Policy Period in Health Insurance?

Think of your health insurance policy as a subscription that’s only active for a set amount of time. That set time is called the policy period. It typically lasts for a period of one year and has a start date and an end date. Some insurance providers also offer multi-year policies for 2-3 years or more. Here’s a quick guide to what it means and why it matters to policyholders.

Think of your health insurance policy as a subscription that’s only active for a set amount of time. That set time is called the policy period. It typically lasts for a period of one year and...

Think of your health insurance policy as a subscription that’s only active for...

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Policy Period in Health Insurance

Policy Period in health insurance is the specific time period during which your policy is active. This duration typically lasts for one year from the start date till the end date in your policy. During this time your insurer is responsible for taking care of your medical expenses or treatments as per the details mentioned in your policy. You need to renew it when the policy ends so you can continue enjoying the benefits of the policy. If you don’t renew on time you could lose your coverage and other benefits like no-claim bonus or waiting period credits.

Let’s say for example, if your policy starts on 1st January 2025 and runs for one year and ends on 31st December 2025, then your health insurance policy will provide coverage for the medical expenses or any treatments that took place between those two dates.

Why is it important?

Coverage timeline

You can only make claims for medical expenses or treatments that take place during the policy period.

Helps you track renewal dates

Missing the renewal date can cause you to lose the benefits of your health insurance policy.

Determines waiting period

Waiting periods for pre-existing diseases or specific treatments can be tracked per policy year.

Tax benefits

Premiums paid within the policy period can be claimed for tax benefits under Section 80D of the Income Tax Act.

What happens when the policy ends?

At the end of the policy period, you need to renew your policy in order to keep it active. If you don't renew it within the grace period, which is usually 15-30 days, your policy may expire and you may lose benefits like:

No-claim bonus

A reward in the form of increased sum insured or a discount on premium for not making any claims during the policy period.

Waiting period credits

These are credits for the time you’ve already served under waiting periods and get carried forward if you renew without a gap.

Continuous coverage benefits

Ongoing policy renewals without breaks help retain benefits like maternity coverage or pre-existing disease coverage.

Portability rights

This is the ability to switch insurance companies without losing your accumulated benefits like waiting period credits and no-claim bonus.

Policy period vs. Grace period

	Policy period	Grace period

Meaning	The duration during which your insurance coverage is active	Extra time given after policy expires for renewal
Duration	Usually 1 year, and can be multi-year as well	Usually 15-30 days depending on the insurance provider
Claim Eligibility	Valid for treatments occurred within this period	Not valid unless policy is renewed within this period
Coverage	Claims can be raised for treatments occurred during this time	Fresh claims cannot be raised during this time
Impact on no-claim bonus	No-claim bonus continues	No-claim benefits may be lost if policy expires

Conclusion

Policy period is essentially the duration of your policy. Understanding it becomes important because, from claim eligibility to long-term coverage benefits, everything depends on staying within this duration. By keeping track of your policy dates and renewing it on time, you ensure you are continuously protected and avoid losing many valuable benefits. So remember to always keep reminders of your policy’s start date and end date and plan your renewals accordingly.

Frequently Asked Questions

Is it possible to change the policy period?

Yes. You can change the policy period, but only at the time of renewal. You cannot change the policy period mid-term or once it is already active.

Can I make a claim after the policy period is over?

You can only claim treatments that have occurred within the policy period. For example, if your policy ended on 20th July, then claim for a treatment that happened on 15th July will be eligible, but claim for a treatment that happened on the 22nd will be rejected.

What happens if I forget to renew on time?

In case you forget to renew your policy on time you may be allowed a grace period, but during that time you won't be covered by your health insurance. Make sure to not miss your grace period otherwise, your policy will expire and you’ll lose all accumulated benefits.

Is it better to have a multi-year policy?

It depends on the individual’s needs and resources. While multi-year policies give you more convenience and might come with a discount, they also require you to pay a larger premium upfront.

Where can I find the policy period?

It is usually mentioned under ‘Policy Start Date’ and ‘Policy End Date’ on the first page of your health insurance policy.

Written by Roocha Kanade

2.5K Linkedin Followers

Reviewed by Dr. Harshita Dahiya

Health Insurance content enthusiast who turns complex topics into easy, binge-worthy reads—fueled by SEO, creativity, and way too much chai! Loves juggling multiple projects, cracking impossible deadlines, and sprinkling humor into the mix. When not geeking out over digital trends, you'll find her lurking on Quora and Reddit, planning the next getaway, or passionately decoding all things health and insurance!