5 Factors to Consider Before Renewal of Health Insurance Policy

Health insurance will not protect you against diseases but it will protect you from financial losses arising due to the expenses incurred for treating those diseases. Unlike vehicle insurance, health insurance is not mandatory. However, it certainly is beneficial.

5 Factors to Consider Before Renewal of Health Insurance Policy - Acko

Today’s sedentary lifestyle has made everyone prone to a lot of diseases. For example, Cancer is increasingly becoming a household disease. People are falling prey to diseases at a young age. In such a scenario, it becomes necessary to avail health insurance in order to fall back on the much-needed financial cushion while treating the diseases. Merely availing health insurance won’t suffice. You need to renew health insurance from time to time as well.

Here are 5 factors to consider before applying for renewal of health insurance policy.

  • Assess Situation

Assess your health before insurance renewal. One year is a long period of time and your body can undergo a lot of changes during that period. Do not simply continue with your existing coverage. You can add an additional layer of insurance to your policy by selecting suitable Add-on covers. Assess your health condition, and revisit your health insurance coverage accordingly.

  • Type of Policy

You might want to change the type of your health insurance policy while renewing it. You can choose from dedicated senior citizen policies, hospitalization plans, daily cash benefits plan, etc. There is the option of a Super Top-up plan as well over your basic health plan.

  • Group Policy

Do not consider the health insurance provided by your employer as an all-encompassing health insurance policy. You might lose out on that benefit if you switch jobs or your employer changes the policy. While it is good to have such a cover, do not rely on it solely to meet your health insurance requirements but view it as extra protection. Other thing you might want to consider is whether you want to go for a family floater policy or choose individual health insurance for each of your family members.  

  • Policy Portability

Not satisfied with the services provided by your insurance company? Just as mobile network portability, you can also switch to a different health insurance provider without compromising your continuity benefits. Your existing No Claim Bonus will remain intact in case you switch your health insurance provider. Nowadays, you can purchase health insurance online as well.

  • Make an Informed Choice

It is possible that you might have opted for your existing health insurance policy based on an insurance agent’s recommendation. You might’ve purchased the same policy as purchased by your friend. However, you have the option of changing things while renewing your health insurance. Every human body is different and thus the health requirements and vulnerabilities are also different. Thus, your health insurance policy’s coverage needs to be determined based on your health requirements only, not based on someone else’s needs.

Why Renew Health Insurance?

An expired health insurance policy will not provide you the financial support in times of need. Your policy needs to be active for you to avail health insurance benefits. Changes in your health condition need to be intimated to the insurance company before policy renewal. Your premium might change depending upon your medical condition during the time of policy renewal.

Usually, your health insurance company will send you a reminder for insurance renewal. However, it is your responsibility to renew health insurance if you want to minimize financial losses in case of an unfortunate event regarding your health. Note that the insurance company can refuse to insure you as well. In such a case, you are free to ask for an explanation from them for the denial.

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