What happens if I forget to pay a premium?

Every health insurance policy comes with a grace period that allows the policyholder extra time after the due date to make the premium payment without interest. If the policy lapses, it is possible to reinstate it within a specific period based on a declaration of a state of health during reinstatement. In case the overdue premium is not paid during the grace period, so long as there is cash value in the policy, the insurance company takes a loan against this to pay the premium. While this will keep the policy alive, it attracts an interest on the premium.