Health Insurance 189 views December 30, 2021

A health insurance plan protects you and your loved ones financially whenever there is a medical contingency. To continue financial protection at such times, you need to keep renewing your policy every year by paying the premium. But before doing the same, you should know a few important things that can help you save money and get great coverage. Here, we have shown some key points that you must keep in mind while renewing health insurance.

Health Insurance

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Keep the Following in Mind While Renewing Health Insurance

You can go through the below pointers and see what you need to take care of while renewing your health insurance plan.

Check the Renewal Date of Health Insurance

Do check email and SMS notifications from the insurer regarding the renewal date. Insurers usually send such notifications a few days before the renewal date. In case you miss paying on that date, you will have a grace period of one month to do so and continue your policy benefits without any penalty.

Total Number of Insured Members

At renewal, you can add or remove any members from your policy if you want. And by adding your parents or kids, you can further your tax benefits. Under Section 80D of the Income Tax Act, you can avail of a deduction of INR 25,000 a year on the premium paid for children and parents. And if the age of the parent is 60 years or more, the maximum deduction is INR 50,000. The total deduction that you can claim under Section 80D is INR 1,00,000, subject to prevailing terms and conditions.

Enhance Your Sum Insured Amount

As you grow older and more members are added to the plan, you would want extensive coverage for multiple medical contingencies. You can thus request the insurer to increase your sum insured. But it could increase your premium amount as well. So, prepare your budget accordingly and ensure premium payments on time.

Choose a Rider Cover

If the current cover is not sufficient enough for you and your family, you can add a rider plan to the base policy. The following are some of the common riders available under health insurance –

Room Rent Rider – Health insurance plans have a sub-limit on room rent or the category of room you’re admitted to. In case of hospitalization in a room category higher than the base cover, you need to bear the additional expenses. So, consider having this rider that specifically covers your room rent of any category in case of hospitalization.

Personal Accident Rider – You can get coverage for different types of disabilities like – permanent total disability, permanent partial disability, temporary total disablement and accidental death under this rider.

Critical Illness Rider – As the name suggests, this cover will provide you with a fixed amount in case you’re diagnosed with any of the listed critical illnesses like cancer or a heart attack. You’ll get a lump sum amount irrespective of the total amount of expenses incurred upon diagnosis or surgery.

Maternity Cover – This specifically covers expenses incurred during the birth of a child. And to get its benefit, you need to complete the waiting period, as applicable in the policy.

Hospital Cash – You will get a fixed daily cash allowance in case of hospitalization.

Check for Any Change in Terms and Conditions

You should check the policy terms and conditions at the time of renewal, because insurance regulations and terms may change due to changes in company policies or government regulations. So, stay informed about the same.

Analyze Your Health Requirements

As per the current status of your health and the members, you can make alterations to your policy.

Disclose Any New Illness

If you or any of the insured family members get a new ailment or illness, you must inform the insurance provider to avoid a potential claim rejection should a hospitalization take place due to the same. Insurance companies approve claims based on health investigation reports. And, if such reports indicate hospitalization due to a new illness, the claim would most likely get rejected if you don’t inform when renewing your policy. So, inform and get covered.

Be Ready with Your Documents

Check all the required documents you need for a policy renewal – such as – your policy number, valid mode of payment, ID proof, address proof, etc.

Consider the Option of Portability

Portability means switching from one insurer to another insurer to maximize benefits. With this, you have the right to transfer the credit gained for pre-existing conditions and time-bound exclusions, provided the previous policy is maintained without any break. However, you need to send the health insurance portability request to the new insurer 45 days before the scheduled renewal date. The new insurer will ask you to submit a No Objection Certificate (NOC), which you can get from your present insurer. Subsequently, a few more formalities will take place before the eventual renewal.

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