Keep These 7 Factors in Mind While Renewing Your Health Insurance Plan

If you own a health insurance policy to safeguard the health of your family, it is important to ensure that you renew the policy on time. If you fail to renew the same, the policy could lapse and you might not be eligible to get the benefits of the same in the future. It is very important to renew the policy on time and there are certain factors that you need to keep in mind when doing the same. Explained below are the seven important factors you need to consider while renewing your health insurance policy.

  • Date of renewal

You need to understand that the renewal of health cover is of extreme importance for you. You should ideally put in a request for the renewal of the policy at least a month in advance. Majority insurance providers offer a grace period of one month and allow you to renew the policy within the given period. However, it is not advisable to wait for the last moment for the purpose of renewal. If you wait until the last day, you could end up failing to renew the policy even within the grace period provided to you. Since different insurance providers have different terms and conditions, it is best to understand whether the provider offers a grace period to you and if yes, inquire about the number of days. Never wait until the grace period to renew the policy and make it a point to do it before time.

  • Top-up plans

After the purchase of the health insurance plan, if you ever think that the policy is not enough for your needs, you always have the option of adding top-up plans to the same. You can choose from a variety of options. Depending on your health requirements, you can add top-up plans for additional coverage at a slightly higher rate. Before you renew the policy for the year, consider adding top-up plans if the need arises.

  • Changes in the terms of the policy

There could be changes in the regulations of the insurance policy due to the changes in the company policies or due to changes in the government regulations. You need to inquire about the same and read the documents thoroughly before you renew the policy. It is always better to stay informed rather than receiving surprises due to the changes at the time of emergency. Read the policy well and then renew it.

  • Analyze your requirements

Your health conditions might change in a period of one year and it is best to analyze your health requirement before renewing the policy. Consider your current health condition and see if you need any alterations in the same. If you have a family health insurance, you will be required to consider the health status of every member in the family and then make a decision of policy renewal. If you need any additional cover, you have the option of top-up plans.

  • Disclosure of illness to the company

If you or any insured member in the family has faced any illness or ailment within the past one year, it is your duty to inform the insurance provider about the same. You cannot hide this information from the insurance provider. Hence, if there is a new illness, be very clear about it with the company and speak to them regarding the same. If you hide this information, you might not benefit from the policy when there is an emergency.

  • Submit updated documents

You should never overlook the importance of this step. You will have to keep all the documents ready before you renew the policy. This includes the policy renewal notice, your policy number, and a mode of payment. In addition, if you have changed your place of residence or your bank account, you will be required to provide details about the same. If you have an auto debit system with a bank and you change the bank for some reason, you will have to mention the same and submit necessary documents for the successful renewal of the policy.

  • Consider portability

When you renew the policy, you will have to consider the option of portability. This means you can change the insurance provider if you want to and you will not lose out on any of the previous benefits. Your premiums will be considered and the benefits will continue while the service provider will change. You need to compare health insurance plans before you carry out this step. Understand the plans and the terms and conditions of the same so that you choose the right policy for your needs. Do not make a hasty decision during this time because you could end up with an insurance provider who is not ideal for your needs.

You need to keep the aforementioned factors in mind before renewing your health insurance policy. If you wait unlit the last day for the purpose of renewal, you will not have enough time to think. You might not be able to compare health insurance plans or consider a top-up. This is why starting the renewal process at least is helpful to ensure that you are taking the right steps and making a well-informed decision.

Author: Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IITs and IISc. She holds 2 patents and over 20 publications in her name. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.