Health insurance plans offer cover for unexpected medical treatment costs incurred by you during a policy year. There are various policies that you can buy depending on your need and requirement.
Depending on the type of coverage, you can choose day-care procedures, domiciliary hospitalisation, pre and post-hospitalisation costs, etc. apart from the standard policy cover for hospitalisation. Along with selecting a type of policy, additional riders enhance the scope of the policy for comprehensive coverage.
Akin to other types of insurance policies, a health insurance policy needs to be renewed periodically. These plans can now be either purchased online or offline from the insurance company. Renewing it at periodic intervals helps you to enjoy continued coverage without any break in benefits. Let us look at some of the reasons why you should not miss on renewing your health insurance policy on time –
Cumulative bonus
It isn’t always that you will be required to make a claim. At such times, the insurance company offers a cumulative bonus. It is similar to the concept of no-claim bonus for motor insurance plans but instead, here the sum assured for your policy increases for every claim-free policy period.
Coverage for pre-existing diseases
Health insurance plans have a waiting period for any pre-existing diseases. This tenure differs among various policies and insurance companies. In some cases, a pre-existing condition is covered after 36 months whereas in a few others as late as 48 months. If you fail to renew your policy, you need to re-serve the waiting period that causes you to lose coverage for a brief period all over again. When purchasing critical illness insurance, make sure you check the inclusion of pre-existing diseases for which you want to opt coverage.
Waiting period
A break in policy renewal often leads to loss of accrued benefits, i.e. any benefits that you might have earned during the policy tenure are not carried forward at renewal date.
Whether you buy health insurance plans for family or an individual insurance cover, there is a 30 day waiting period for any illness or disease. If you fail to renew your policy in time, this 30 day waiting period starts afresh. Thus, it is essential to renew your policy in time to enjoy continued benefits.
What are the tips to remember when renewing your health insurance policy?
Review the policy terms
When you receive the policy reminder from your insurance company, make sure to review the policy terms. Any changes in the terms and conditions may influence your buying decision.
Compare other available plans
Before renewing your existing policy, make sure to compare all available policies. The regulator, Insurance Regulatory and Development Authority of India (IRDAI), allows portability wherein you can transfer your existing policy benefits to a different insurance company.
Reassess your need
With the rise in medical inflation, it becomes vital you assess your healthcare requirements periodically. It can be done at each renewal date to ensure you and your family offer optimal protection.
Keeping the above tips in mind, remember never to miss a renewal date to enjoy continued benefits from your health insurance policy.
