5 Reasons Why Reviewing Health Insurance is Paramount

Health risks are an inherent part of life. It is impossible to predict a medical emergency, and while you cannot prevent it, you can be well prepared to face the challenges head-on by having a robust health insurance cover. However, just having health insurance is not enough; you must opt for a plan that caters to your changing health insurance needs.Since most health insurance policies in India are renewable annually, it is paramount that you review your plan and make the necessary adjustments so that you don't end up paying for the medical expenses.

• Adjust the plan to suit your changing lifestyle One of the most important reasons to review a health insurance policy is due to your lifestyle habits. Factors such as stress, eating habits, work environment, travelling, and age play a vital role in your overall health condition and make you prone to a range of lifestyle-related disorders. With the increase in healthcare costs, you must get sufficient insurance cover to suit your lifestyle.
• Know about new products and features The insurance market in India is continuously evolving. The insurers introduce a new plan or product now and again to cater to the people's diverse needs. Some insurance companies also revise their existing plan to offer additional protection to the policyholders. Hence, when you review health insurance plans, you must research the new products and features and see how you can benefit from it.
• Get NCB (No Claim Bonus) Benefits All the insurance companies in India offer a good percentage of NCB for every claim-free year. The bonus can range between 20% to 50%. The NCB can benefit in two ways; either you can increase the coverage amount by a certain percentage per the policy terms or reduce the premium amount.Suppose you skip reviewing your health insurance policy. In that case, there is a great risk that you may miss out on getting the NCB benefits or receive fewer benefits, and eventually pay a higher premium than required.
• Coverage against pre-existing diseases If you fail to review health insurance, you may lose out on the coverage benefits against pre-existing diseases. For example, let us assume that your health insurance plan has a waiting period of two years for cataract. By reviewing the plan every year, you may find another insurance company offering a similar plan with a lesser waiting period for cataract than your current insurer and has a lower premium.Thus, when you review the health insurance policy, you can make an informed renewal decision and switch your policy to a new insurance company .
• Increasing healthcare expenses Over the past few years, healthcare costs have increased significantly. The treatment for some of the critical illnesses like cancer can easily run into several lakhs. And, without sufficient insurance cover, you may have to pay for the expenses from your pocket, which in turn, can disrupt your financial goals. So, by reviewing your health insurance plan during renewal, if you don't have sufficient coverage, you can increase the sum assured or buy an add-on cover to cover the risks.

Thus, reviewing your health insurance allows you to get appropriate coverage as per your changing needs and take advantage of other benefits guaranteed under the 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.