Lifetime Renewability Benefit - Importance and Tips to Buy

In India, over the years, health insurance has evolved significantly. Today, insurance companies offer a wide range of plans with special features and better benefits to provide more comprehensive coverage. Also, the insurers give insurance buyers the flexibility to customize their plans as per their family's specific needs.Although people are more aware of the importance of maintaining a good lifestyle and enrolling in various wellness programs, the risk of medical emergencies cannot be eliminated. With the skyrocketing prices of healthcare, having robust health insurance is necessary for all.Since the advent of the COVID-19 pandemic many people have realised the importance of health insurance and are willing to get insured for an entire lifetime. Therefore, many insurance companies are offering lifetime renewability benefit.

As per the Insurance Regulatory and Development Authority of India mandate, all insurance companies in India must offer a health insurance policy with an entry age up to 65 years. Also, as per the regulatory body’s guidelines, insurance companies must compulsorily offer lifetime renewability option to insurance buyers.As the name suggests, the option allows you to keep renewing your health insurance policy for as long as you want. This feature of health insurance is not limited by the age of the policyholder. Hence, this feature is extremely useful for retired and elderly individuals.You can continue to renew the policy, even if you filed for a claim in the previous year. On arbitrary grounds, the insurance companies cannot deny the policy renewal, or they would have to give a reason in writing for denying the renewal of your policy.

Generally, insurance companies have an upper limit on the entry age for buying the policy at 65 years. However, this restriction does not apply when you renew the policy. Hence, if you buy a healthcare plan any time before your turn 64 years old, then you can keep renewing it throughout your life by paying the premium before the due date. Similarly, if you have purchased a life insurance policy for your old-aged parents, then they are also eligible to renew it for as long as they want.When you keep renewing health insurance, you can continue to enjoy all the benefits your policy offers. You will always have financial security against medical emergencies that may occur without any warning. You can also get coverage for the daycare treatment and other expenses that are covered under the policy.The earlier you buy your health insurance policy, the lesser the premium will be. This is because when you are young, you may be healthy and less susceptible to illnesses. As a result, the chances of you filing a claim are minimal. This means the insurance company has minimal liability in offering you health insurance coverage.On the other hand, as you grow old, you would be at a higher risk of having health issues. Consequently, buying health insurance during your old age would be expensive. But you can easily avoid this by purchasing a policy at a young age and keep renewing it every year.Nowadays, many insurance companies evaluate the health of the policy applicant before issuing a policy by asking them to undergo a medical examination or sign a declaration form about their health. This is especially true for applicants who are aged more than 45 years.Irrespective of the age at which you buy health insurance, you must disclose facts about your medical history and current health condition in your health insurance application. Make sure that you don’t hide any facts from the insurer, or you may face the risk of claim rejection later on.If you are fit and don’t have any underlying condition, then youcan voluntarily undergo a medical test and submit the report to the insurance company. This will help you continue renewing your policy without any hassles throughout your lifetime, unless you are diagnosed with any condition later.

Buying a health insurance policy is not as easy as it may seem.You must consider several factors to get the best coverage for yourself and your family. The following tips will be useful.

• Do thorough research about different health insurance policies. Compare the plans from various insurance companies and make an informed decision. The policy you choose must suit your specific medical needs.
• When you compare different insurance policies, the price should not be the only criterion, you must consider buying a policy that offers comprehensive coverage and is cost-effective.
• Always check the inclusions and exclusions of the policy and ensure that it covers the specific illness that you or your family members may be vulnerable to and have the least number of exclusions.
• Check the claim settlement ratio of the insurance company. This gives you a fair idea about how sooner and seamlessly your claim will be settled. It is better to purchase a policy from a reputed insurance company that has a high CSR of more than 80%.
• It is better to purchase a policy online rather than offline from an insurance agent. This will help you get the policy at a lesser price. Also, you can easily buy or renew the policy, raise a claim, and make other service requests with just a click of a button.

The features like lifetime renewability make health insurance more beneficial. However, when you buy health insurance, make sure you carefully read the terms and conditions before signing the policy papers.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.