Health Insurance Renewal - 3 Things to Keep in Mind

Health insurance policy offers coverage for medical expenses incurred by the insured member during a policy year. Depending on the type of health cover one opts for, the medical expenses can include hospitalization costs, day-care procedures, domiciliary hospitalization, pre and post-hospitalization costs, etc. There are various add-ons or riders that can be attached to a standard health insurance policy to get well-rounded coverage. Critical illness rider, personal accident cover, hospital cash benefit plan, super top-up plan, maternity benefit cover, etc. are some of the common riders available on the market.

Policyholders can make 2 types of health insurance claims - cashless claim and reimbursement claim. Cashless facility can be availed only at a network hospital of the insurer. In the case of a cashless claim, the insurance company will settle the bills directly with the network hospital whereas in the case of a reimbursement claim, the insured member has to pay the medical bills out of his or her pocket and after discharge from the hospital make a claim for reimbursement of the medical expenses incurred during the period of hospitalization.

Health insurance renewal

Like life insurance or car insurance, health insurance has to be renewed at the end of every policy year to enjoy continuous coverage. Health insurance can be purchased online through the insurer's website or offline through an insurance agent. Similarly, health insurance renewal can be done online through the insurer's website or offline at the nearest branch office of the insurance company. Before purchasing a health insurance plan, it is important to compare various policies across the top insurance providers in order to choose the one that best serves your needs.

Compare health insurance policies online through a third-party website and get an instant quote on your chosen policy. Health insurance premium calculator is an online tool that can be used to calculate the cost of the chosen health insurance policy. Just enter personal details such as age, gender, occupation, place of residence, and policy details such as policy tenure and sum insured into the tool to get an accurate estimation of the insurance premium.

3 things to consider at the time of health insurance renewal

Although health insurance renewal is a simple and easy process, especially when done online, there are few things to keep in mind before renewing the existing policy:

• Review the renewal terms: Policyholders will be sent a renewal reminder by the insurance company 45 days prior to the renewal date. The reminder email will contain policy details such as the sum assured, number and types of claims made, and no-claim bonus. Policyholders must be diligent and keep the insurance company informed if there is any discrepancy in the policy details specified in the reminder mail.
• Before renewing, check out other options: Health insurance portability allows a policyholder to transfer the health insurance policy from an existing insurer to another. Porting a policy from one insurer to another is an option when the policyholder is dissatisfied with the existing insurer either due to higher premium costs and sub-limits or lower benefits. An advantage of health insurance portability is that the policyholder will not lose out on the policy benefits such as waiting period and No-Claim Bonus when transferring it from one insurer to the next. The process has to be initiated 60 days prior to the policy expiry date.
• Assess insurance needs: When choosing the sum insured, most fail to take the cost of inflation into account and end up with insufficient health cover. With the steady rise in healthcare costs, an existing policy will not offer sufficient insurance coverage. That is why, it is necessary to assess present and future health insurance needs. Depending on the needs, choose a higher sum insured or add a rider to the standard base policy.

Health insurance like two-wheeler insurance has to be renewed annually to keep the policy active and enjoy continuous coverage. Here are some tips to renew health insurance on time:

• Policy renewal before due date: When a policyholder fails to renew the policy on time, a 15 to 30-day grace period is provided to pay the premium dues. If the premium payment isn't made within the grace period, then the policy lapses. Policy coverage doesn't exist during the non-payment period. Insurers aren't bound to provide any renewal reminder notice to the policyholder. Therefore, the policyholder has to remember to renew the policy on or before the due date. Health insurance premium can be higher than other insurance premiums. Therefore, like that of a personal loan EMI payment, put aside funds to make health insurance premium payment.
• Tax benefits: Health insurance like life insurance provides tax benefits as per the Income Tax Act, 1961. Enjoy tax deductions on premiums paid towards health insurance and critical illness riders. Change the policyholder to get better tax benefits. For instance, paying for a senior citizen insurance policy on behalf of a parent allows for a higher tax deduction.
• Review insurance needs: Health insurance needs of an individual varies with age, illnesses, and even a new addition to the family like a spouse or baby. Which is why, it is important to review one's insurance needs before renewing the existing policy. If a couple is planning to have a child, a maternity benefit plan can be added to the base policy or if the insured member has a higher chance of a suffering a critical illness in the future due to lifestyle habits or family medical history, a critical illness cover can be added to the base policy at the time of renewal.
• Disclose new illnesses at the time of renewal: Be honest with the medical details furnished at the time of policy purchase and renewal to avoid any hassle when a claim has to be made in future.
• Choose higher sum insured: At the time of policy renewal, policyholders have the option to increase the sum insured. This requires medical tests and a revision of the claim history. Sum insured can't be increased further if the existing sum has already met the sum insured limit of the policy. In such a case, the policyholder can opt for a Super Top-up Plan to get a higher sum insured.
• Read policy document carefully: Check the policy terms and conditions like claim guidelines, renewal clause, exclusions, etc.