The importance of purchasing health insurance coverage for oneself and loved ones is now widely recognised. The growing likelihood of hospitalisation, the rising prevalence of critical illnesses, and increasing medical costs have led many Indians to secure health insurance. A health insurance plan covers the medical expenses of the insured individuals for the policy year’s duration. Just as it is crucial to buy a health plan, it is equally vital to renew it on time. Timely health insurance renewal ensures continuous coverage and prevents any benefits from expiring. Read on to learn about the benefits and significance of health policy renewal.

Benefits of Renewing Health Insurance on Time

There are several key reasons why you should ensure timely health insurance renewal. These include:

1. Policy Lapse
   Not renewing health insurance by the due date can make your coverage inactive. Any claims filed during this period will be denied by the insurer, and you will have to pay for hospitalisation expenses out of pocket. Although insurers offer a grace period to reinstate an expired policy, you cannot file a claim until your coverage is renewed. If you fail to renew within the grace period, your policy will lapse, and you will need to purchase a new one, losing the health insurance benefits of your existing policy. Considering the increasing risk of critical illnesses and rising medical costs, it is crucial to ensure continuous coverage, as you never know when you might need a health plan.
2. Waiting Period
   When you buy a new health insurance policy, you must wait a certain amount of time before filing a claim. There is no waiting period for accident-related hospitalisations, but there is an initial 30-day waiting period for illnesses. Additionally, there is a 2- to 4-year waiting period for pre-existing conditions and other common procedures, such as knee replacement surgery, maternity coverage, and cataract surgery, depending on the policy you choose. If you let your policy lapse and do not renew it, the waiting period you already served will be wasted because you will have to purchase new health insurance. A lapsed policy cannot be renewed, and you must buy a new one.
3. No-claim Bonus
   Another one of the significant health policy benefits you may lose if you fail to ensure timely renewal is the no-claim bonus. You may not file a claim every year, and for each year you don't, the insurer rewards you with a no-claim bonus. This bonus can come as a higher sum insured on your existing policy or a discount on your renewal premium. However, you can only receive this benefit if you renew your policy within the specified time frame. If you fail to renew your policy on time, your no-claim bonus will expire.
4. Medical Check-ups
   Failing to renew your health insurance plan on time can lead to another drawback: undergoing a detailed medical examination before obtaining new coverage. If you ensure regular health insurance renewal, a medical exam may not be necessary every time. However, if your coverage lapses, your insurer may need to reassess your health conditions before issuing a new policy. This process can delay the purchase further, leaving you vulnerable to financial losses in case of a medical emergency.
5. Expensive Premiums
   When you purchase health insurance at a younger age, your premiums are typically lower. If you buy a health policy while you're young and then allow it to lapse, you may find that securing a new policy later in life becomes significantly more expensive. For this reason, timely renewing health insurance ensures cost-effective coverage for years to come.

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Things to Consider During Health Insurance Renewal

Here are some important things to take into account when renewing health insurance.

• Assess the Sum Insured
  When first purchasing health insurance, you might prioritise saving on premiums, often choosing a lower sum insured. However, this can lead to higher out-of-pocket expenses during medical treatments. While you save on premiums initially, substantial costs during hospitalisation or treatment may arise. During health insurance renewal, assess whether your cover amount is sufficient for your current needs, especially if new members have been added to a family floater plan. Increase the cover amount if you find it inadequate.
• Addition/Removal of Members
  For those covered under a family floater plan, you might need to add or remove members during health insurance renewal due to marriages, births, deaths, or changes in relationships. Make necessary alterations to your policy and reassess the sum insured to ensure adequate coverage for all members.
• Evaluate Associated Benefits
  Health insurance plans come with features and add-ons such as super no-claim bonus, room rent waiver, and critical illness add-on. Before renewing health insurance, check whether you need to remove or add these features to ensure your health plan meets your healthcare needs.
• Review Payable Premiums
  Ensure that your plan has an adequate sum insured, covers all the members of your family, and that your premiums are reasonable. Compare the premiums payable with the coverage offered. If you find the premium too high, look for other health insurance plans that provide the same level of coverage at a lower cost.
• Consider Porting
  Porting allows you to transfer your current health insurance policy to another while preserving the benefits and rewards earned. This option is available if your needs change or you find a better offer with another insurer. Porting is only possible at the time of renewal, and you must notify your insurer 45 days before renewal. Carefully review your policy's coverage and premiums to make an informed decision.

Conclusion

Renewing health insurance on time is crucial to maintaining continuous coverage and avoiding potential setbacks. By staying proactive with your renewals, you ensure that your health plan remains active, preventing insurance policy expiry that could lead to denied claims, loss of no-claim bonuses and the need for unnecessary medical check-ups. Additionally, timely renewals can save you from higher premiums associated with purchasing a new policy later in life. Assessing your sum insured, adjusting member coverage, evaluating associated benefits, and reviewing payable premiums are essential steps during health policy renewal. These actions help tailor your policy to your current needs, ensuring adequate and cost-effective coverage.

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