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Smart Health Insurance Renewal Tips You Should Know

 

When you buy a health insurance policy, you must take the responsibility of renewing it every year. This is crucial if you wish to continue enjoying your health insurance benefits. Most health insurance policies have a validity period of one year and have to be renewed annually for continuous coverage.

Renew your health insurance policy renewal on time to ensure your policy does not lapse. In this blog we will look at the benefits of renewing your policy and explain the things you need to look out for when doing it.

Why is renewing your health insurance policy important?

Renewing your health insurance policy before the due date ensures uninterrupted coverage, retains your no-claim bonus benefits, and helps you avoid starting a new waiting period or undergoing fresh medical tests.

Here’s why timely renewal is crucial:

  • Continued Coverage: Avoid claim rejection due to policy expiry.
  • Retention of No-Claim Bonus: Boost your sum insured or enjoy premium discounts.
  • Avoid Higher Premiums: New policies may cost more and require medical tests.
  • No Waiting Period Reset: New policies come with waiting periods for pre-existing diseases which you can avoid by renewing your current plan.

Most insurance companies provide a grace period of 15 days after the expiry date to pay the premium but it is wise to pay the premium well before the deadline.

When you do not renew your health insurance policy on time, you will lose out on the no-claim bonus you would be eligible for if you had made no insurance claims in that year. Since the no-claim bonus is payable only at the time of policy renewal, you will forgo this benefit.

Things to consider when renewing your health insurance policy

Upgrading your current coverage: At the time of renewal, reassess your health insurance coverage and upgrade if necessary to account for rising medical costs or new family additions.

Points to consider:

  • Increase the sum insured if current coverage is insufficient.
  • Add critical illness, maternity, or daycare procedure benefits.
  • Include new family members under family floater plans.

Review the premium amount: When renewing the policy, you may be required to pay a higher premium due to factors such as your increased age, changes in your medical or health condition, a claim made in the previous policy year, inflation, or changes in the insurer's pricing rules.

The increase in the premium amount can also be due to new benefits added to the policy at the time of renewal. These can be:

  • Coverage for all family members
  • Improved hospital network
  • Outpatient coverage
  • Wellness programs
  • Discount for lab tests or annual checkups

If your policy has some or all of these benefits, then a premium increase is justified.

Evaluate the benefits of the policy: Consider the add-ons your policy offers such as room-rent waiver, critical illness covers or no-claim bonus. When you renew your policy, consider both useful and extraneous benefits and customize your policy based on your requirements.

Review the policy terms and conditions

When renewing your policy, check if there are any updated terms in your insurance policy because some insurers can modify exclusions or add or change co-payment clauses. The sub-limits for room rent, surgeries or diagnostic tests can be added or changed when you renew your policy.

Since these factors will affect the premium or claim amount when you make a claim, it is necessary to know about them.

Ensure that the coverage offered justifies the premium. In case you feel the premium is high, you can consider other insurers who can offer a health insurance policy with the same coverage at a lower premium. You can use the portability option to change your health insurer.

Porting your health insurance at the time of renewal

You can port your health insurance policy to another insurer at renewal by submitting a porting request at least 45 days before the expiry date.

Benefits of porting include:

  • Retaining continuity benefits like waiting period credits.
  • Accessing better features and customer service.
  • Securing a more affordable premium.

 The new insurer will assess your health history before approval. Minor increases to the sum insured are generally allowed for seamless benefit transfer.

It is important to renew your health insurance policy to enjoy continued insurance coverage. Timely renewal ensures your policy remains active and you do not face setbacks such as rejection of claims, forgoing no claim bonus or undergoing medical checkups that are not required.

Renewing your health insurance policy is not just a necessity—it’s an opportunity to strengthen your healthcare and financial security.

·       Assess your current coverage.

·       Review premiums and new benefits.

·       Explore portability if needed.

·       Make informed upgrades or changes.

At Zen Insurance Brokers, we help you make smarter decisions when it comes to renewing or porting your health insurance policy. Our experts offer personalized advice, policy comparisons, and complete renewal support to ensure you continue enjoying uninterrupted protection.

Disclaimer:

Zen Insurance Brokers is an IRDAI registered broker which facilitates quick and adequate insurance broking services. We deal with only regulator approved products of insurers. We do not underwrite the products.

 FAQS

Can I increase my sum insured at the time of policy renewal?

Yes, you can ask for an increase in the sum insured during the time of renewal. The insurer might ask for a health check-up or underwriting evaluation depending upon the requested increase.

What is the grace period for renewing health insurance?

Most insurance companies provide a grace period of 15 days from the expiry date of the policy to pay your premium. Claims under the policy during the grace period are not typically paid.

 Can I change insurers while renewing health insurance?

Yes, you can transfer your health insurance policy to a new insurer by making an application at least 45 days prior to the expiry date of your existing policy while keeping accrued benefits.

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