The term ‘portability’ is usually associated with the telecom industry. A similar feature is available in health insurance as well.
In this article, let us shed some light on health insurance portability. We will also cover the conditions under which you should switch your insurer and how to choose you the right health insurance company.
What is meant by Health Insurance Portability?
Portability is the possibility to switch from one plan or service provider to another without losing any benefits. Health insurance portability refers to switching from one health insurance plan to another offered by the same health insurance company or switching over to another health insurance company altogether.
People usually switch plan or insurers when they are not satisfied with the services offered by the existing insurer. The advantage of portability is that the policyholder does not lose on the benefits like NCB, or waiting period while porting.
Benefits of Health Insurance Portability
As mentioned earlier, you will not lose on the benefits you have accumulated, by porting your health insurance policy. Let’s take a look at the exact set of benefits:
NCB stands for No Claim Bonus. As the name suggests, you may be entitled to such a bonus or discount if you do not raise a claim against your health insurance policy. If you simply buy a new health policy without porting, you may lose your accumulated NCB. However, porting from one medical insurance plan to another increases your chances of retaining this discount.
One of the biggest benefits of portability is the waiting period of health policy. Usually, a policyholder needs to wait for a couple of years before he/she can claim against certain situations like pre-existing diseases, maternity benefits or some ailments. When you port your medical insurance plans, the waiting period that you have completed does not need to be completed again. If you are halfway through the waiting period, your new insurer may ask you to wait for the remaining time and not the entire waiting period. For example, if you have completed 2 out of 3 years of waiting, your new insurer may allow you to claim after one year instead of 3.
How to choose the right health insurance company for porting your plan?
Compare the features
Every health insurance policy would be slightly different based on the insurance company. Compare various policies with the help of an online insurance aggregator. You can also check out different plans offered by the same insurer and choose the one that suits your requirements the best.
Health insurance companies offer a host of useful services. Get to know as much as you can about the services offered. You can even call up the insurer to know what is on offer.
Nowadays, knowing the reputation of an insurance company has become very easy thanks to social media. Log on to any of the social media pages of a prospective insurance company and take a look at their customer reviews. You can get a general idea about how well the company is doing when it comes to customer service. You can also check the claim settlement ratio of the company by visiting the insurance regulator’s official website.
Last but not least – price. If you are wondering why it is the last point on this list is because a policyholder ideally should not buy health insurance based on its price. After taking into account the above points, you may proceed to buy a policy that is affordable. Purchasing a policy online is an added advantage as the costs are low in comparison to their offline counterparts.
The Bottom Line
Health insurance portability is an excellent feature offered by general insurance companies. Note that you cannot port a life insurance product. Make sure to get the policy ported in case you are not happy with the current one.
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