Health insurance is an essential and necessary expense in our lives. It provides financial security during medical emergencies and helps us avoid the burden of steep medical expenses. However, maintaining continuity of health insurance coverage over the years is important to avoid lapses in coverage and ensure that we are continuously protected. Renewing health insurance before its expiry is necessary to avoid the risk of losing coverage and financial burden in case of medical emergencies.
Benefits of renewing health insurance policy before expiry
Renewing health insurance before its expiry date is beneficial in several ways.
- Health emergencies: It avoids any interruptions in the continuity of coverage against health emergencies.
- Tax benefits: Insurance policies offer certain benefits and tax savings upon timely renewal of your existing policy versus purchasing a new policy.
- Claim benefits: You might lose out on the cumulative bonus on the premium amount offered by some health insurance companies for every claim free year.
- Unwanted financial expenses: keeping health insurance renewal up to date will avoid the risk of unwanted surprises such as higher premium costs, applying for your policy from scratch, etc.
Things to remember while renewing health insurance policy
Renewal of health insurance policy can become an easy process if an individual remembers some important pointers and follows them accurately. Here are some things to keep in mind while renewing your health insurance policy:
- Review coverage: Going over the terms and details of the insurance policy and coverage is an essential task that should be undertaken before renewing the policy. Make sure to go through the coverage provided under the policy and consider how it fits your present needs in the most optimal way.
- Renew on time: It is important to renew your policy before its expiry to ensure continuous coverage and avoid a waiting period for a new policy. Before the expiry date of the current policy, check with your insurance agent for the due date for renewal and ensure that you renew your policy timely.
- Compare policies: Despite having an existing health insurance policy, it is recommended to compare health insurance policies before renewing the policy. The market is extensive and insurers reduce and modify policy terms, meaning that a more comprehensive or cheaper option may be available that suits an individual's requirements more effectively.
- Clear existing claims: All existing claims should be settled before renewing your policy. This ensures smooth renewals and protects against policy lapsing and claim settlement contention.
How to renew health insurance policy online
The renewal process is easy and uncomplicated, whether it is done online or offline. Health insurance renewal process can be complete by following the steps given below:
- Visit the insurance provider's website to renew policy: Log in to the insurer's website with your login credentials provided at the time of buying the policy.
- Enter policy details and personal information: Provide the policy number and other required details, including personal information ensuring that the correct and relevant information is shared with the insurer.
- Pay the premium using net banking, debit card, or credit card: Make the payment through online payment methods securely.
Read more: Compare & Buy Mediclaim Policy in India
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.
Also, check:
