5 Points to Remember While Renewing Health Insurance

Buying health insurance is an excellent way to get financial protection against various medical expenses that may crop up at any time. Just as it is important to buy a healthcare plan, it is equally critical to renew it on time for the policy to remain valid. When you sign the policy papers, you must note the renewal date and renew the policy before the expiry date to avoid paying the penalty.If you are a first-time insurance buyer and have no experience in renewing health insurance, the following tips will come in handy.

• While renewing a health insurance policy, it is paramount to reassess your coverage needs. If you want to take out or add a family member to your policy, you can update the policy at the time of renewal. Adding senior citizens to the policy can help you get an additional tax benefit.
• As you grow older, your insurance needs would change. If you are diagnosed with any serious illness, or you have an underlying condition, you can increase the coverage amount or buy a top-up plan at the time of renewal. Remember, if you increase your coverage, you may have to undergo a medical test, and you may have a waiting period before you can file a claim for the increased amount.
• As per the IRDA (Insurance Regulatory and Development Authority of India) regulations, the health insurance policy’s terms and conditions remain the same when you renew the policy. But, sometimes, the insurance companies tend to change the terms based on the earlier claim. In the event of such changes, the insurer is obliged to inform the policyholder at least three months before the renewal. So, make sure that you review the terms carefully while renewing the policy.

Suppose you don’t accept the revised terms. In that case, you can migrate to another similar policy with the same insurer to port the policy to a new insurance company as per the IRDA guidelines.

• Health insurance policy is an annual contract, and it is to be renewed every year. However, during the year, your health condition may change. If you are diagnosed with any illness, you should inform the insurer about it. Filing for a claim for a specific disease out of the policy scope without informing the insurer may lead to rejection.
• Once you have renewed the policy, it is better to keep your family members informed about the changes and updates you have made. Ensure that you keep the renewal receipt safe and handy so that it can be easily found as required easily while filing for a claim.

Final Word Usually, people assume that they got full protection against medical emergencies by buying a health insurance policy , but that is a wrong approach. Renewing health insurance promptly is necessary as purchasing the right plan.

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.