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  • Glossary

    Health Insurance Terms Made Easy To Understand.


In general insurance policies, including health insurance plans, Lapse means the termination of an existing policy and the coverage offered under it. Insurers typically provide policyholders a 15-30 day grace period following their policy renewal/expiration date. If policyholders still do not renew their policy, it lapses, and the insurer is no longer liable to provide coverage. The insurer rejects all claims filed after a policy lapse.


Liabilities in health insurance refer to the expenses policyholders and insurance providers are contractually obligated to bear per the policy terms. Insurers' liabilities include the medical expenses up to the sum insured and per the insurance policy's established limits for variables (e.g. room rent, surgeon fees, etc.). Conversely, policyholders' liabilities include out-of-pocket expenses like deductibles, co-payments, and costs exceeding the sums insured and established variables limits.

Loss of Independent Existence

Loss of independent existence is an individual's inability to perform everyday activities like bathing, dressing, eating, moving, etc., following a medical diagnosis or trauma lasting for at least six months. Such individuals may take time to recover and require life-long mechanical aids and devices. They may be eligible for expenses associated with loss of independent existence, such as hiring help, home nursing, daily cash benefits etc., based on their insurance plans.