Along with buying a health insurance policy, one must keep renewing it accordingly. Normally, a health policy is offered for one year; and it is important to ensure the policy is renewed annually.
In current times, we all have realized the importance of health. Especially post the pandemic, people have started taking insurance more seriously and now understand why it is essential to include a health insurance policy in financial planning.
With the constant rise in medical expenses and the ever-rising diseases, health insurance provides people with financial backup in times of unforeseen medical emergencies.
Shreeraj Deshpande, COO, Future Generali India Insurance, says, “Along with buying a health insurance policy, one must keep renewing it accordingly.” Normally, a health policy is offered for one year; and it is important to ensure the policy is renewed annually.
One, however, must not be impulsive while renewing one’s health policy and should check some significant facts.
Here are some things to keep in mind while renewing a health policy;
Renew your policy on time: Deshpande says, “If the policyholder fails to renew the policy in the grace period given by the insurer, the policy lapses.”
In such cases, you have to buy a new policy and go through the whole waiting period again. Hence, to avoid such situations, always keep track of renewals.
Increase in sum insured: Most insurers can increase the sum insured during the renewal of the policy. Experts say one should assess their health conditions and medical costs and enhance the policy by adding a super top-up to their base policy or increasing the overall sum insured.
Always analyze your needs and risks involved: Health risks and cover needs vary from person to person on parameters like age, gender, family history of illness, work-life, and even area of residence. Deshpande says, “It would be best if one analyzes the specific risks and declare the details before making the right choice.”
He further adds, “Any change in health condition must be informed to the insurer while increasing the sum insured on renewal of the policy; this might sound like a minor change, but it can create several barriers while claiming it, especially when needed the most.”
Porting of policy: If you are unhappy with your insurer, you can switch to a new policy service provider without losing the policy continuation benefits. The person will have to inform the insurer about the same a month prior.
Having said that, keep in mind, porting of a policy can only be done among similar types of health insurance plans. Even though the waiting period and the no-claim bonus are carried over to the new policy while porting, other features and benefits will be according to the new insurance plan and the new insurer, irrespective of what the earlier policy offered.