Renewal of your health insurance should be done with care so that you do not have to face any problems in the future
You recharge your mobile pack regularly because you don’t want it to stop working, don’t you? Similarly, you have to renew your health insurance policy periodically in order to keep it active. If you do not renew your health insurance within the grace period, your coverage may lapse. Then you will have to go through the hassle of buying another policy, which can be a time-consuming process. Consequently, it is important to renew your health insurance on time, and, while you’re at it, there are a few things you should consider.
Increase the insurance coverage
You should review your coverage at every renewal. You should treat health insurance renewal like a health checkup every year. Each year, you visit the doctor to get a health status update. Before your health insurance plan renews, you should review its coverage, benefits, features, etc.
Your current health insurance coverage may not cover all your healthcare needs. Perhaps it isn’t keeping pace with the rapidly rising costs of healthcare.
You should always discuss this with your financial advisor and update the coverage when necessary. In the event of a major hospitalization, you may have to dip into your savings. Your sum insured will be sufficient for the foreseeable future if you regularly increase it.
Options for riders/add-ons
In reviewing the coverage, you must also consider whether the existing riders/add-ons meet your present and future needs. When renewing your policy, opt for them if you think they do not.
Insurers have now introduced add-ons that cover non-medical expenses as part of their plans. Another plan waives the room rental limit. You can check for these new add-ons and discuss with your financial advisor whether you need to subscribe.
It is important to note that you can only choose riders that are available with the product you have already purchased. You will have to port to a new policy if you want to opt for or add a specific benefit that is not available with the policy you currently have, not even as a rider.
Check for any changes to the policy terms
Insurance Regulatory and Development Authority of India (IRDAI) guidelines state that insurers can change policy terms and conditions with IRDAI’s prior approval. In addition, they must notify you of any change 90 days before the renewal. Even then, you should keep your eyes open. Before renewing your policy, it is best to review the terms and conditions with your advisor and find out if there have been any changes. In the event that your insurance company has changed its terms and you are not happy with them, you might consider porting your policy.
Port your insurance policy
If you are not satisfied with the benefits or features of your existing policy, or the level of service you are receiving from your current insurer, you may want to consider porting your policy at renewal. You can transfer your current policy to another insurance company of your choice while keeping the continuity benefits you have already earned. In order to take advantage of portability, you must inform your current insurance company 45 days before your policy renewal date.
Members can be added or removed
At the time of renewal, you can also add or remove family members from your health insurance policy. At renewal time, you can add your spouse or child to the health plan if you recently got married or had a child. If a family member has passed away, you can remove them from the policy when renewing it.
Should you need to be hospitalized, not considering these things may end up costing you your savings as well as your peace of mind. Do your due diligence when renewing your health insurance, so that you don’t face any problems in the future.