A health insurance policy is usually valid for a period of one year. You need to take active measures in order to keep the policy active. If you fail to renew the policy in time, you may face a lot of issues including financial losses.
In this article, we will take a look at the 5 major disadvantage you may face for not renewing the policy in time. We will then wrap up with a few things you should do before renewing your health insurance coverage. Let’s get started.
- Disadvantages of not Renewing Health Insurance in Time
- How can I buy Health Insurance Quickly?
- Things to do before Renewing Health Insurance
Disadvantages of not Renewing Health Insurance in Time
#1 No policy. No Coverage
You are covered under health insurance only when you have an active insurance policy. Thus, no policy means you cannot avail any of the coverages mentioned on the policy. This, in turn, means that you need to shell money out of your pocket in an emergency situation concerning the health of your nominees and you as a policyholder. Not having health insurance benefits can account to not only financial losses but also delayed treatment.
#2 Loss of No Claim Bonus
Every health insurance company is entitled to offer a bonus or a discount in health insurance premium if you do not raise a claim against your policy. This is called the No Claim Bonus. It is mostly cumulative in nature and is awarded even when you renew your policy in the grace period after the expiry of your policy. However, you can lose the discount and health insurance benefits entirely if you fail to renew the policy after the grace period is over. Thus, you would bear a financial loss only for not renewing your health insurance policy in time.
#3 Increased Waiting Period
Health insurance policies may enforce a waiting period upon claiming against certain medical conditions. These conditions could include a few pre-existing diseases, maternity benefits, or other specific medical conditions depending upon the terms of the policy. When you do not renew your policy and let it lapse, the waiting period that you served will be of no use as you would buy a new health insurance policy this time. This is because a lapsed policy cannot be renewed, and you need to buy a new policy.
#4 Renewing a lapsed policy is expensive
As mentioned above, when you do not renew your health insurance policy in time you need to buy an entirely new policy. This means you lose your NCB which in turn increases the health insurance premium. You may need to pay more premium than you would if you had renewed the policy in time.
#5 Medical check-ups
A health insurance company may require you to undergo a detailed medical exam before insuring you. When you continue to renew your policy, a medical check-up may not be required each time. However, with a lapsed policy, your insurer may want to recheck the status of your health before issuing a fresh policy. This process may further delay the purchase, and you may remain exposed to financial losses in case of a medical emergency.
How can I buy Health Insurance Quickly?
In today’s time, the best method for buying health insurance quickly would be to buy an online health insurance policy. As compared to buying the same policy offline, an online health insurance policy will offer discounts and better coverage. Buying online health insurance is also the fastest way of getting your insurance policy as it gets generated instantly if a medical checkup is not required.
Things to do before Renewing Health Insurance
#1 Know about the active coverage
You should be aware of the coverage that you currently have. This will be helpful to complete the next step of knowing your requirements. Knowing your current coverage also reduces the chances of claim rejection, and you are better prepared in case of an emergency.
#2 Know your current requirements
Your requirements may change with changing time. For example, you may not have thought of buying maternity benefits when you were not married. But upon this renewal, you may consider the maternity coverage. Thus, update your policy as per your needs.
#3 Compare Policies
Buying a policy online helps you to compare the available coverages and choose the one that best suits your requirements and budget. This would be a time-consuming process if you decide to buy the policy from an agent. Thus, make full use of this benefit and compare various policies of the same category before finalizing on the best one.
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