Health insurance is undoubtedly a necessity in today’s day and age. It goes without a doubt that living without a health insurance policy is like throwing caution to the wind. But have you given a thought while selecting your health cover?
Some individuals often purchase a health insurance policy for its tax benefits. While it may meet the short term goal of tax savings, does it really offer the core benefits of a health insurance policy? Not always. At these times, you might want to switch your insurance company. This process is called portability of health insurance policy. Policyholders have the option to change their insurer at the time of renewal of their policy.
Here are a few tips to remember when you want to port your health insurance policy –
- Your medical history
- Waiting period of your policy
- Sum assured under your new policy
- Age limit for policy renewal
- Cashless or reimbursement mode
Your medical history
Porting a health insurance policy depends on your medical history. Your porting request by the new insurance company may be rejected if you have a pre-existing ailment that requires frequent hospitalisation. Also, those above a certain age may be required to undergo a medical test too. This age limit differs among the different insurance companies. Thus, you should always check the eligibility with your new insurance company and then send a porting request.
Waiting period of your policy
There are different waiting periods under your policy. One is a mandatory waiting period; the other is a disease-specific one. Disease-specific waiting period differs among different insurance companies. For severe illnesses like type 2 diabetes, or cancer, or even a heart condition, the waiting periods are as long as 48 months. Now, if you want to port a policy after three years, only the waiting period that is applicable after three-years shall apply with the new insurance company. Since you have already completed the three-year waiting period with your old insurer, you won’t be made to serve a fresh waiting period.
Sum assured under your new policy
When porting to a new insurer, remember to check the sum assured of your new plan. This will ensure similar coverage with similar benefits are available when you move to your new insurance company. Make sure you compare health insuranceplans and select the one that allows you to opt for a policy without any restrictions.
Age limit for policy renewal
Opting for health insurance plans that allow you to renew your policy throughout your lifetime is crucial. It is important because as your age increases, your health deteriorates. At such times, renewing your health cover can be useful to protect against unexpected old-age medical emergencies.
Cashless or reimbursement mode
If you are changing your present insurance company for its payment hassles, you must consider the new insurance company’s payout mode. Whether your new policy is a cashless policy or a reimbursement one will decide the choice of your insurance policy. It can help you plan your finances in case of a medical emergency.
So purchase the plan that gets you desired coverage and benefits; after all, that is why you are porting to a new policy. In case you feel your base health insurance plan is inadequate to cover for life-threatening illnesses, you can buy critical illness insurance. It ensures all diseases that have a financial impact on your hard-earned savings, can be protected using a health insurance policy.
