Timely renewal of your health insurance policy is essential to ensure continuous coverage and retain accumulated benefits. Here are some important factors to keep in mind during the renewal process:
Monitor the renewal deadline
Renew your policy before the due date to avoid a lapse in coverage. While most insurers provide a grace period of 15 to 30 days, delaying renewal can result in a loss of benefits.
Evaluate your coverage needs
Your healthcare requirements may evolve over time. Assess whether your current sum insured and benefits are adequate, and consider increasing coverage if necessary.
Review policy terms & conditions
Carefully check for any updates in premium rates, coverage inclusions, exclusions, or waiting periods. Being aware of these changes helps you make informed decisions.
Check your no-claim bonus (NCB) eligibility
If you haven’t filed any claims, you may qualify for an NCB, which can either increase your sum insured or lower your premium. Confirm this benefit with your insurer.
Declare any new medical conditions
Disclose any newly diagnosed health conditions to your insurer to prevent complications or claim denials in the future. Non-disclosure can lead to policy termination.
Compare plans & consider switching
If your existing policy no longer meets your needs, explore other insurers offering better coverage, lower premiums, or additional benefits. Porting to a new insurer is an option.
Enhance your coverage with add-ons
Boost your policy by opting for riders such as critical illness cover, OPD benefits, or maternity benefits for better financial security.
What happens if you fail to renew your health insurance policy?
A missed health insurance renewal, timely corrected, can result in a policy getting expired, losing the essential continuity benefit of health insurance coverage and policy protection. If an individual fails to renew the policy before or during its expiry date, it leads to a lapse in the coverage, which means that the policyholder observes a waiting period before coverage is reactivated.
Lapses can result in paying the entire premium again upfront, especially if the coverage has lapsed for a significant period of time. Additionally, claiming of benefits during lapses or delays makes the person ineligible for any claims during the period of lapse.
Grace period benefits of health insurance
Health insurance providers offer a grace period of 30 days for policyholders to renew their policy after its expiry date. During the grace period in health insurance, policyholders can still continue to enjoy coverage under their policy despite the non-renewal state. If during this time a medical emergency arises, the insurance company will provide cover for hospitalisation expenses and emergencies. So, policyholders can still claim medical expenses such as hospitalisation costs, subject to the terms and conditions of the policy. However, policy renewal must still be completed within the 30-day grace period.
Can you change the health insurance policy during renewal?
Yes, you can change your health insurance policy or insurance provider at the time of health insurance renewal. The health insurance premium may change during renewal. You can also check if the new health insurance continues to cover the pre-existing conditions or has waived off the waiting period if you have completed the tenure.
When transitioning to a new health insurance provider, your no claim bonus and waiting periods are carried over from your previous policy. The waiting period from the previous plan is subtracted from the waiting period of the new policy. Consequently, you only need to fulfill the remaining waiting period to make a claim.
Key factors for renewing your health insurance policy
There are several key factors to consider when renewing your health insurance policy:
Your health and fitness: Consider whether your health condition has changed. If you have developed any new conditions that should get covered under the new policy. Similarly, if you have consistently remained healthy, you may want to opt for a low-cost policy with fewer features.
Adequate coverage: Determine what coverage you require and compare the features of the existing policy with those of the new policy. Ensure that the new policy adequately covers your needs.
Waiting periods: When moving from one insurer to another or switching policies, a new waiting period may apply for pre-existing medical conditions. Know the duration and ensure they are reasonable and do not affect your health.
Premiums: Consider the premiums of both policies. If the premiums for the new policy are significantly higher than the existing one, check the coverage benefits and costs before making the final call.
Renewal process: Make sure you go through the renewal process well in advance to avoid lapses in your insurance coverage. This will also provide adequate time to explore different health insurance options and keep track of the different renewal aspects.
Health insurance portability: If you're dissatisfied with your current insurer's services, consider changing your health insurance company.
In conclusion, renewing a health insurance policy before its expiry date is always the advisable path to take. It is important to review coverage before renewing as well as comparing policies and being aware of the pertinent details of your policy. The renewal process is easy and straightforward but missing the renewal deadline could lead to loss of policy coverage and benefits, making grace period benefits important to those who may have either missed the grace period expiration or encounter an unfortunate emergency during that period.
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