Health Insurance 117 views May 6, 2021

Health insurance has emerged as one of the necessary investments for people as it offers coverage against costly medical bills. Insurers provide health insurance plans for 1, 2 or 3 years. But to get uninterrupted benefits from your health insurance, it is crucial to renew your policy on time, or it might lapse! Insurers also provide a grace period of 15 days from the premium due date within which you can renew your plan. But what are those key things to ensure before renewing health insurance?

Well, in this article, we will be discussing the points to remember at the time of renewal. These points will help you get the benefits of your health insurance plan along with upgrading the same according to your requirements. So, let’s start to know more about it!

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Key Things to Remember Before Renewing Your Health Insurance

We are showing some of the crucial points to ensure before renewing your health insurance. Please check!

Opt for a Higher Sum Insured

Sum insured under your health insurance plan should be the first thing you check before renewing your plan. It may be possible that your current sum insured won’t be sufficient in the upcoming years considering the rising cost of medical care. Also, a health crisis can create a situation where multiple family members need hospitalization. So, you should be prepared accordingly.

Considering the current times where COVID has afflicted many people who require expensive treatment, a higher sum assured on renewal will give you the much-needed cushion should you face this disease or any other. The bill amount is running in lakhs for people seeking hospitalization due to COVID. Your place of residence could also dictate the hospital bill amount. If you live in a metro city, having a cover of 10-15 lakh is imperative given the cost of medical care there. Similarly, tier-II and tier-III residents should opt for at least 7-10 lakh to feel comfortable.

However, you may need to pay more towards the premium of your policy on choosing a higher sum insured. So, consider your affordability before choosing a higher sum insured.

Check if There is a Sub-limit Clause

Insurers also put sub-limits in a few plans that put a definite limit up to which they bear the expenses for a specified medical condition. If the medical treatment cost exceeds this limit, you will need to bear the expenses. Suppose your health insurance plan with a sum insured of INR 10 lakh has a sub-limit on room rent expenses up to 1% of the sum insured. It means you can get room rent coverage up to INR 10,000 per day in case of a medical emergency.

When you choose a policy with a higher sum insured, there are greater chances that it may not have a sub-limit clause. Hence, you can get coverage up to the overall sum insured limit.

Inclusion or Exclusion of Family Members

At the time of renewal, you can include or exclude any of the family members according to your requirements. Adding a senior citizen to your policy will also help you get additional tax benefits under Income Tax Act, 1961.

Opt for Top-up Plans

At the time of renewal of your health insurance, you should also check if you need an exclusive top-up plan to enhance the coverage of your existing plan. Before renewing your health insurance, you should re-evaluate your insurance needs and choose a top-up plan accordingly.

Check Terms and Conditions of Your Policy

It is important to check if there has been any change in the terms and conditions of your health insurance plan at the time of renewal. According to the Insurance Regulatory and Development Authority of India (IRDAI), insurers should inform about the change in terms and conditions or premium amount of the policy within a minimum of 3 months before the renewal. If you are not okay with the revised terms and conditions, you can switch to a different insurer or plan.

Disclosure of New Illnesses to the Insurer

When renewing your health insurance plan, you should inform your insurer about any new ailment or illnesses you or your family member may have caught up with. If you don’t inform about the same and the insurer finds it later, your claim may get rejected on the ground of fraud.

Portability Option

With the portability option, you can also choose to change your health insurance plan or company at the time of renewal without losing any previously gained benefits. However, you must communicate your porting decision to the existing insurer at least 45 days before the date of renewal.

Check the Discount Offers

Check if your insurer is providing a discount on your premium on fulfilling certain conditions such as adding family members, paying the premium by a specific payment mode, etc. This can help you save at the time of renewing your health insurance plan.

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