Health insurance policyholders often port their policy to a new one to avail of several benefits. As per the IRDAI, every policyholder can port their policy to a new insurance provider. This porting transfers your waiting period and accumulated bonus to a new policy without causing any loss.
However, health insurance portability needs a more profound understanding of some crucial aspects. Here’s more about it!
Top 10 Things to Consider While Porting Health Insurance Policy
1. Policy Type
While porting your health insurance, you must consider selecting a type similar to your existing policy. It is not allowed to completely change the plan and coverage while porting your health insurance policy. So, you need to understand the new policy’s inclusions and exclusions, deductions, sub-limits, etc., before switching from your existing plan.
2. Medical History
While porting to new health insurance, the insurer may ask for a medical test, specifically for candidates above 45 years of age. If the test reveals any new health condition, you should stick with the previous insurance provider, as the porting request may get rejected.
Besides, if you had any such health issues like high blood pressure, diabetes, heart problems, etc., since buying the previous insurance, you may not qualify for the porting. This is because an individual who needs to visit the hospital frequently is considered a high-risk individual by the insurance provider.
3. Waiting Period
Health insurance policies come with three waiting period types. For new policies, the waiting period is 30 days; for diseases like appendicitis, kidney stones, etc., it is 2 years; and for pre-existing diseases like cancer, type 2 diabetes, etc., it is 4 years.
So, even if you port to a new policy, you must complete the waiting period in health isnurance, as this will help you get high coverage.
4. Increase in Sum Insured
While porting your health insurance, it is ensured that you will at least receive the same sum insured from the new insurer. However, you may opt for a higher sum insured than the previous policy. It is only possible if your new insurer approves the increased sum insured. Besides, you must complete the waiting period to use the additional sum insured amount.
For instance, your insured sum was Rs. 6 lakhs, but you want to port to an insured sum of Rs. 9 lakhs. In such a case, you can use the additional Rs. 3 lakhs after completing the waiting period for a pre-existing illness.
5. Add-on Coverages
You may opt for porting if you get better benefits or additional coverage from a new health insurance provider than your current policy. For instance, some health insurance policies do not cover maternity, while others provide add-on coverage for maternity.
So, if your existing insurance does not cover such needs, you can port to a new policy with added benefits. However, before porting, you should evaluate the coverage and benefits with other providers to secure the feasible option.
6. Premium
Sometimes, policyholders cannot bear the premium of their existing health insurance policy and look to port it to a new one with lower premiums. This may seem profitable, but in the long run, you may end up paying an extra amount to cover your health needs.
This is because policies with a lower premium may not provide enough coverage. So, you must check the coverage and premium properly before making any decisions.
7. Your Age
Considering the risks of health deterioration in older people, most insurance companies do not approve insurance porting for senior citizens. Even though some insurers might accept your health insurance portability application, you may end up paying high loading costs, including a co-payment clause.
So, it is better to remain with your previous insurance company if you are a senior policyholder.
8. Informing Existing Insurer
It is essential to inform your existing insurer in advance so that you can get the renewal notice on time. You need to submit the renewal notice to your new insurer as a confirmation document for policy details.
Apart from that, you must submit the claim details of your previous policies, the policy type to which you want to port, the last two years’ health insurance policies, etc.
9. Product Features
You need to check the features of the new policy carefully before porting your health insurance. So, check the pre-existing diseases, room rent, waiting periods, co-pay, etc., before porting. Generally, you need to choose a policy with similar benefits, add-ons, etc.
10. Application Timeline
One of the most important things to consider while porting health insurance is to keep in mind that you can only opt for a porting at the policy renewal time. You need to finalize the policy you intend to port to within 45 days of renewal and notify your existing insurer.
However, you cannot opt for a porting in case of a lapsed policy. In such cases, you need to purchase a new health insurance policy. A policy lapse will cause you to lose all the benefits and coverage.
Porting health insurance can be beneficial in multiple ways. It can provide additional medical coverage, benefits, better features, and more. You can port to a new policy according to your needs.
However, if you are above 45 years old, there is a chance of getting rejected by most insurers. So, you need to consider all the points above before finalizing your decision.