With the skyrocketing cost of healthcare in India, having a health insurance policy is a must for every individual. Similarly, timely renewal of health insurance plans is equally important. Nowadays, many insurance providers offer the facility of online health insurance renewal. The online process of renewal is not only hassle-free but also saves a lot of time and money. Moreover, renewing a health insurance policy on time also ensures that one has the right health cover. Let’s read further to know the process to renew a health insurance policy.
Health Insurance Policy Renewal Process
An individual can renew the health insurance policy through online or offline methods. The offline renewal can be done by visiting the branch office of the insurance company or through middlemen or agents. On the other hand, the online renewal can be done easily by visiting the official website of the insurance company. Moreover, through online health insurance renewal, the policyholder can also compare various plans online and choose the best health insurance policy as per their requirement and suitability.
Benefits of Health Insurance Policy Renewal
Let’s take a look at some of the benefits of renewing the health insurance policy:
On-time health insurance policy renewal is important to ensure uninterrupted coverage. If the policy lapses, the medical expenses will not be covered by the insurer and the policyholder may lose the no claim bonus. Moreover, by renewing the policy on time, the policyholder can avail of the medical coverage even at the age when they are no longer eligible to purchase a new health insurance plan.
One can avail of the benefit of tax exemption on the premium paid towards the health insurance policy under Section 80D of the Income Tax Act. 1961. By renewing the health insurance plan on time one can ensure to save on taxes on the premium amount.
The policyholder can avail of the benefit of no-claim bonus offered by the insurance company in case no claim is filed by the insured during the policy tenure. The no-claim bonus is a discount ranging from 20%-50% and is given by the insured at the time of health insurance renewal. The discount is offered on the premium amount during renewal.
To avoid paying a higher premium amount, it is important to renew the policy before expiry. In case an individual fails to renew the policy on time then they will have to pay a higher premium to buy a new health insurance plan.
Things to Consider While Renewing the Health Insurance Policy
Many different aspects should be kept in mind while renewing the health insurance policy. Here are some of the things that an individual can consider while renewing a health plan:
Renew Policy Before the Due Date
It is important to renew the policy before the due date. A grace period of 30 days is offered by the insurance company to pay the premium of the policy. In case the policyholder fails to pay the premium during the grace period the policy lapses.
As per the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), no health insurance cover will be offered to the life insured if the policy has lapsed. Moreover, the policyholder can also end up losing no claim bonus if they do not renew the policy within 90 days from the day of expiry.
Revise the Sum Insured Under the Health Insurance Policy
While reviewing the health insurance policy, the policy buyers must also check the sum assured of the health insurance policy. If an individual is not satisfied with the sum insured amount, then they can increase the sum insured while renewing the policy.
Disclose any New Illness or Medical Condition
While renewing a health insurance policy, it is crucial to disclose any medical condition or new illnesses that may have developed during the tenure of the policy. The medical condition of the policyholder can impact the premium rate of the policy and thus, it is mandatory to share it with the insurer. In case the policyholder failed to share any illness or medical condition then it may lead to claim rejection.
Check for Any Changes in Terms and Conditions of the Policy
Before paying the renewal premium, the life insured should go through the terms and conditions of the health insurance policy. Make sure that the terms and conditions of the policy remain the same while renewing the policy. As per the IRDAI (Insurance Regulatory and Development Authority of India) guidelines, any changes in the policy tenure can only be done with the approval of the policyholder and at least three months before the date of expiry.
Inform the Family About the Changes in the Policy
Once the policy is renewed, the policyholder must inform the family about the changes made to the policy. It is important to provide the details of the policy to the family members so that they can access it in case of any emergency.
Factors to Consider While Renewing the Health Insurance Policy
Let’s take a look at the factors to consider while renewing the health insurance policy:
- Sum Insured Enhancement– The policyholder can enhance the coverage of the policy if he/she is not satisfied with the existing amount of the policy.
- Health Insurance Coverage– The policyholder can check the existing coverage of the health insurance policy and modify the coverage as per the current medical requirement.
- Policy Upgrade– In case the insured is dissatisfied with the existing policy then he/she can upgrade the policy to another health insurance plan.
- Renewal Terms– Go through the renewal terms of the policy at the time of policy renewal so that there are no discrepancies.
- Health Insurance Portability– the policyholder can switch the insurance company if they are not satisfied with the services of the current insurer.
In this day and age, having a health insurance policy is extremely important to ensure the financial security of the family in case of any medical emergency. Thus, by renewing the health insurance policy on time an individual can secure the financial future of their family against any health emergencies.