How to switch health insurance without losing your benefits

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You do not need to start anew or lose benefits accrued over the years in changing your health insurers. Thanks to the portability option introduced by the Insurance Regulatory and Development Authority of India (IRDAI), you are able to transfer your existing health policy to another insurer without losing valuable benefits like waiting periods and no-claim bonuses. This is how to switch intelligently.

Understand what benefits you can retain

When you change your policy, some advantages that have been accumulated remain untouched. They consist of the waiting period credit for pre-existing sickness, time-limited exclusions, and your no-claim bonus. Assume your previous policy had a 4-year waiting period and you already waited for 2 years, the new company will only have you wait for 2 years for pre-existing conditions—if your sum assured is not altered.

But if you opt for a greater sum insured or add new benefits under the new policy, the insurer can charge a new waiting period on the greater amount or on new benefits.

Choose an appropriate time for opening the port

Portability of health insurance needs to be done at least 45 days before your current policy runs out, but not sooner than 60 days. This is a tricky time period—one way or another, you may be renewing with your current insurer or having to begin anew on a new policy.

Always maintain your existing policy active until the new insurer formally approves the request to port and gives the new policy. Never leave a gap of a single day in the cover so that there is continuity.

Compare policies and read fine print

Before you switch, compare the new insurance company's premium, coverage, hospital network, claim settlement percentage, and customer service ratings. All policies are not equal. A lower premium can come at the cost of lower benefits, sub-limits, or co-payment percentages.

Also verify if the new insurer has a large network of hospitals in your locality and if they have cashless facilities. These tangible features can be of great assistance in the event of emergencies.

Disclose medical history truthfully

When you are transferring a policy, you will have to complete a new proposal form and will be required to undergo a medical test. It is advisable to reveal all pre-existing illnesses openly. Non-revelation can result in rejection of the claim in the future, even if the policy was transferred.

Your port request can be accepted or rejected by your new insurer after reviewing your health profile. Your continuity benefits will be transferred on acceptance.

Keep all records on location

Maintain a copy of your previous policy records, renewal notices, and claim records because these may be required by the new insurance company. Insurers, in the majority of cases, ask for evidence of continuous coverage and information on past claims to make you eligible for porting.

IRDAI rules mandate that the porting process should be completed within 15 days from the date your application and documents are accepted by the new insurer.

Changing your health insurance can be a wise money move, particularly if you want improved service, broader hospital coverage, or more bells and whistles. But you must do it carefully. Mind deadlines, read policy terms, and make sure your continuity benefits are not lost. Health insurance portability, when done correctly, allows you to upgrade your coverage without giving up what you already have.