Mistakes you should avoid while Renewing Health Insurance?
Today the cost of living is quite high, it is essential to have a medical health insurance plan in place. However, choosing the correct health insurance coverage is not a simple process. In case you have chosen the wrong health plan, the best time to evaluate your choice is during the health insurance policy renewal. There are several things to keep in mind while purchasing or renewing health insurance coverage in today’s market. Despite this, most of us overlook several critical criteria while purchasing or renewing our health insurance policies.
Dharshana bought her first health insurance policy at the age of 27, at the time of starting her career. As a disciplined policyholder, she was with the same insurance company for the next 3 years, renewing the policy without fail. Unfortunately, during the COVID-19 pandemic, she had to take up a lot of responsibilities at home and work, which made her miss out on the health policy’s renewal. The no-claim bonuses, loyalty points, and many benefits that she had earned over the past few years got canceled due to the non-renewal of the policy. Since the policy’s grace period also expired, Dharshana could not review the policy. By the time she remembered about the policy’s renewal date, a lot of time had passed, and she had no other choice apart from buying a new health insurance policy. It involved going through the same procedure of paperwork, health checkup, waiting period, etc. Had she remembered the renewal date of her previous policy, she wouldn’t have been in this position to buy a new policy, losing out on the benefits accumulated with the old policy.
To help you avoid some common mistakes during the health insurance renewal, we list them here so you can make an informed decision.
- Choosing less coverage: When it comes to determining which health insurance policy to purchase, the cost of the premiums is a significant factor. As a result, many people end up choosing inadequate insurance coverage to save on the premium costs. Health insurance premiums are an essential consideration, but they should not be the only one. It is the primary goal of a health insurance policy to prevent you from being in a financial crisis in the event of a medical emergency. Being underinsured may fail to serve their intended purpose in the event of an accident, which is why it is very much important to have enough coverage. It is just as dangerous to have no health insurance as it is to have inadequate coverage. Therefore, make sure you choose to have adequate health insurance coverage at least at the time of renewal.
- Opting for basic health cover only: Choosing a comprehensive health insurance plan over a basic one is typically recommended by experts. On the other hand, individuals are hesitant to give up the notion of basic health cover considering the costs involved in buying a health policy with many features and advantages. With a basic health insurance plan, you may not be able to get the real value and benefits of a personal accident cover or critical illness coverage. Your health insurance policy will be comprehensive only if you make use of all the available benefits that form a part of the coverage. Add-ons like ambulance fees, in-home hospitalization, and cashless treatment should also be considered while shortlisting a policy, as you may require them at some point in time.
- Not understanding the policy terms: Even though most people are aware of the policy’s coverage, they do not pay attention to the policy’s terms and conditions. Similarly, in addition to comprehending the inclusions and limitations of a policy’s coverage, it’s critical to grasp its exclusions.
There is a risk that you may have overlooked the fine print while purchasing your health insurance policy. If you feel that the terms are not suited for you, make use of the free look period of 15-days that all insurance companies provide to understand the terms after purchasing it. You may terminate the plan at any time during this period if you find any provision to be unsatisfactory, and the insurer will refund the money paid.
- Not evaluating the existing policy: It is very critical that you assess the current policy and note any flaws. You may be able to locate a plan that is more suited to your present position and provides additional advantages. Using the portability option, you may easily transfer to new insurance without sacrificing your available advantages. A daily cash benefit option, outpatient department (OPD) coverage or free preventive health ups can be available when it’s time to renew your cover.
- Not disclosing the new health conditions: If a new health condition is discovered at the time of policy renewal, the insurer must be informed of this. Failure to do so might result in the insurance company rejecting your claim. Therefore, to guarantee a smooth renewal and claim procedure, the policyholder should notify the insurance company of any new medical conditions.
- Missing the grace period: You must renew your policy within the grace period to get the cumulative bonus and No claim bonus if you have not claimed during the policy year. If you don’t renew your insurance within 30 days of the renewal date, you will be ineligible for these benefits. You may keep track of the renewal date and grace period to prevent making the mistake of not renewing on time.
Many times, people are afraid to switch their insurance providers, thinking it is not right. But that is not true. It is not bad to do some research before renewing your existing health insurance policy and checking what other insurance companies are providing. You may discover greater coverage features at a lower cost than your current policy. If you find a better deal on health insurance, do not feel afraid to make the switch.
By ensuring the above mistakes are not committed, one can ensure their health insurance policies are in good standing for a longer time to come while enjoying the benefits of whatever features are made available in health insurance covers.