Things to Consider While Renewing Your Health Insurance Policy

You often recharge your smartphones to avoid having your services interrupted, right? In the same way, you must renew your health insurance policies to keep them active. Our health insurance could lapse if we don’t renew it during the grace period. After its expiration, you will have to go through the trouble of purchasing a policy once again. Thus, it’s crucial to renew your health insurance policy on time. Additionally, there are several things you should consider while doing so.

Here are the six important things you should consider while renewing your policy:

1. Don’t overlook the renewal date.

The renewal date is one of the most important things to consider while renewing your health insurance policy. Once the pre-fixed term of your health insurance policy expires, you must renew the term. Renewing the policy allows you to enjoy continuous health insurance benefits. Although the insurer reminds you of the renewal date, the insured must not overlook it.

The insurer provides the insured with a grace period of 15–30 days in case you forget to renew your policy. Per the rules, the insurer is not liable to charge extra fees during the grace period. Health insurance policies lapse if when they are not renewed before or during the grace period. If the policy lapses, it cannot be renewed. Such lapses are risky, especially for those with medical conditions.

2. Examine your changing healthcare needs.

Healthcare costs increase as per your age. Hypertension and diabetes are very common illnesses these days. Also, the risk of serious diseases increases with your age. At the time of policy renewal, you must tell the insured about the additional diseases that you didn’t have before renewal. This might increase your premium, but it will insure you against future health conditions.

Also, health insurance policies should change with the changes in an individual’s life stages. For instance, if you are married and have a child. You should get your new family members covered under your health insurance. With changing health insurance needs, you must upgrade and renew your policy from time to time. Also, if your current insurer does not meet your present and future health insurance needs, you must shift to another insurer. Choose the best health insurance policy that fulfils your needs at an affordable premium.

3. Increase the sum assured under the policy.

After reviewing the above-mentioned health insurance needs, you are certain that an increase in the sum covered is necessary. And this can only be done at the time of renewal. And if the proposed upgrade is large, the insurer may impose restrictions such as no prior claims and the need for medical exams.

Be aware that the waiting periods will apply once again to the extra share of the insured. Thus, when it’s time for policy renewal, you should be ready and aware of that.

4. Check for changes in policy terms and conditions.

The Insurance Regulatory and Development Authority of India (IRDAI) looks for the insurance sector. According to IRDAI, insurers can change the terms of a policy with its approval. However, they must communicate those changes with their customers 90 days in advance.

As a responsible policyholder, you should keep your eyes open. Before the renewal of your health insurance policy, discuss the changes in the policy with your advisor. Move ahead with the policy renewal if the changes in the policy provide you with the desired benefits. Or, choose another policy that provides highly valued benefits at the same premium.

5. Have a look at the premiums offered by competitors.

There is a lot of competition in the insurance sector. Due to this, many competitors try to offer competitive premium rates. You should also compare the premium rates of other competitors of the same policy offering similar benefits. Nowadays, comparing the premium rates and benefits offered by different insurers is very easy. You can do this by using various comparison tools available online. You can compare the different health insurance policies in terms of

• Benefits.
• Claim settlement ratio.
• Reviews.
• Premiums.

You must rethink your policy if it does not offer the benefits as per the premium. Or, if it charges a higher premium as compared to other health insurance policies.

6. Save the receipt and inform your family member about the renewal.

Notify your family member about your policy’s terms. So they are aware of the changes and are not surprised when the time comes to file a claim. Tell them where you keep the insurance papers, cards, etc.

Follow up with the third-party administrator (TPA) to get the updated cashless identity cards issued. As you’ll be deducting the premium from your taxes. Printing out the receipt and keeping it in your tax file for your records and future use is a good idea.

To Sum It Up.

Most people believe they have done everything after buying a health policy. But this is an incorrect belief. Buying health insurance policies is as important as renewing them properly and promptly. Always remember your renewal date. Also, consider your changing health insurance needs. And ask for an increment in the sum assured.

Before renewing your policy, check for any changes in the policy’s terms and conditions. Compare the premiums offered by other insurers or competitors. Keep your receipts at hand. Inform your closest family members about the policy changes. Change your insurer if you are unsatisfied. Choose the best health insurance policy with reasonable policy terms and the benefits offered. Visit our website to find more useful and informative blogs.