Health Insurance

Before Renewing Your Health Insurance Validate These 5 Points

By Vikas Chandra Das
14 November 2022, 10:34 AM

Considering the rising medical costs and the uncertainty of life, acquiring a health insurance policy that suits your needs is a must. Generally the health insurance policy is for a year and it requires to be renewed every year. In Spite of reminders sent by the insurance companies, it is the sole responsibility of the policyholder to renew their policy, else they would lose invaluable benefits such as pre-existing health condition waiting periods and no-claim bonus accrual and many others. Hence, in order to take advantage of continued benefits, it is advisable to renew the health insurance policy every year. 

5 Points to Look for Before Renewing Your Health Insurance Policy

Assessment of Health Condition

Evaluate your health condition and accordingly update the health insurance provider, if there are any changes to it before renewing the health insurance policy. In a span of a year, health risks and needs vary depending upon age, work-life balance, financial situation, etc.. and the body might have also gone through changes hence you may want to add a certain layer of insurance with suitable add-on covers.

Policy Premium & Grace Period

Premium for the policy is basically a stipulated amount that the policyholder must pay in order to keep the health insurance policy active. In return for the premium paid, the insurance company will provide a receipt which is proof that the policyholder has chosen to keep the policy active and to continue with it.

Further, it is recommended to preserve the documents and receipts of the health insurance policy. 

In case, due to an event if the policyholder can't renew the policy on time, they are allowed a grace period of 15 days by the insurance company to make the payment for the renewal premium hence the insurance policy will remain in effect and the policyholder would be eligible for continuity benefits. 

Policy Portability

According to the IRDAI,  portability in health insurance refers to the right of individual health policyholders to transfer their policy to another insurance company along with transfer of credits accumulated for pre-existing conditions and time-based exclusions. 

Portability features allow policyholders to transfer existing health policies to new insurers without compromising existing policy discounts or premiums. So if for some reason you are not happy with your current insurance company, rather than cancel your current policy and buy another one with a  new waiting period and lose the premium on your existing policy, port your health insurance.to another insurance provider.

Portability applies to  all coverage-based individual health insurance, floater family health insurance, and group health insurance plans offered to bank account holders. Neither IRDAI nor insurance companies charge a fee for providing portable health insurance.

Option to Upgrade Sum Assured / Riders / Add-Ons

Keeping in mind inflation, rising medical costs, your current and future health insurance needs you can choose to upgrade the sum assured of the policy. Companies usually set certain conditions to increase the amount of insurance, such as medical examinations or no insurance. Therefore, if you apply for an increase in the amount of insurance, you need to be prepared for waiting times. However, the insured amount may be within the maximum insured amount. This option is not available to the policyholder in such circumstances.

Further in regards to riders and add-ons, you should also evaluate whether your existing drivers/addons meet your current and future needs. If you believe this is not the case, please choose when you update your policy. For example, many insurance companies now introduce add-ons to their plans that cover non-medical expenses. In addition, there is also a plan that exempts the rent limit of the room. You can search for such new add-ons and discuss with your financial advisor and accordingly switch to another policy if that offers that benefit. 

Changes in the Terms of the Policy

Under the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), insurers are allowed to amend their insurance terms after obtaining prior approval from the IRDAI. In addition, they must notify you of any changes 90 days prior to renewal. Before you renew your policy, we recommend that you review the policy with your advisor to see if the terms have changed and if need be can it be considered for porting.

Additional Information About Policy Renewal

  • Insurance companies do not allow policyholders to claim the period between expiration and renewal of the policy. 
  • The renewal must take effect before the end of the grace period else, the contract will become invalid. 
  • Policyholders are entitled to the same benefits as their original policy if they choose to migrate. 
  • If a customer chooses another insurance company they must notify the existing insurance company 45 days in advance. 
  • If the insurer denies the renewal request, the customer has the right to demand an explanation.
  • In the event of marriage, childbirth or death of a family member, you can also add or remove family members from your health insurance plan at the time of renewal..

To Conclude

To get the most out of your health insurance, it's important to read the policy documents. Knowing your health condition and health insurance plan can help you decide if insurance is right for you. Many people purchase insurance policies based solely on recommendations from friends, family, or insurance agents, without making sure that the policy meets their needs. The ultimate goal of health insurance is to provide financial assistance during a medical emergency. Therefore, you need to make sure that you offer competitive pricing, excellent customer support, and all the benefits  you and your family need. 

FAQs
1. What is the process of renewing the health insurance policy?

Insurance Policy can be renewed either online or offline.

2. What are the two types of health insurance?

There are two main types of health insurance: private and public, or government. 

3. Is it better to get health insurance through the company or buy it individually?

Health insurance through your employer is often cheaper than getting health insurance regardless of your job. This is because employers pay part of the health insurance and medical expenses. However it is upto the customer's discreation.

4. What are the exclusions in health insurance?

Uncovered contact lenses, eyeglasses and hearing aid costs. Also, dental surgery/treatment (where hospitalization is not required), congenital trauma, convalescence, sexually transmitted diseases, general debility, addictive drug/alcohol use, self-harm, AIDS, diagnostic costs , fertility treatments, and naturopathic treatments are exclusion lists in India's health insurance plans.

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