Renewing a Health Insurance plan is as important as purchasing a fresh one. On missing out the renewal of your medical insurance policy on time, all the efforts and time one put in researching and comparing various policies while buying may all go in vain. This leaves people vulnerable to medical expenses, as a result, they might need to depend on their hard-earned savings or assets to afford their medical bills.
Health Insurance renewal plays a crucial role in providing continuous coverage and wide protection. Generally, Health Insurance policies will be valid only for a certain period, say one to three years. To keep it effective, one needs to renew the policy before the expiry of the policy term to retain their coverage under the plan. But what does one get through successive renewal of the policy? Here are some of the benefits:
Waiting Period
Waiting period refers to a time span during which the insured persons cannot make any claim, except for accidents. Many Health Insurance policies have different waiting periods such as for covering pre-existing diseases, specific diseases listed in the policy documents, maternity, etc. The time span of each waiting period is policy specific, also it varies from one insurer to the other. Usually, these waiting periods start from the inception of the policy.
Hence, if one misses out to renew the policy on time and wishes to get coverage in the future, then the waiting periods will start afresh. The policyholder once again has to wait till the completion of the waiting period before making any claim.
By continuously renewing the medical insurance policy, one can tide over the waiting period and avail complete coverage at the time of need.
Cumulative Bonus
People can be covered under Health Insurance for years without having to make any claims. For this, many Health Insurance plans reward people in the form of a bonus, also known as no claim bonus or cumulative bonus. It is a common feature most Health Insurance policies offer.
If the policyholder does not make any claim during a policy year, then a certain percentage of the Sum Insured will be added to the overall coverage limit. Like this, many policies offer cumulative bonus for every claim-free year up to 100% of the Sum Insured, as a result, the overall coverage limit can get doubled without any addition to the premium.
But one can avail this benefit only through successive renewals of the policy without any break, failing which, then the accumulated cumulative bonus will get lapsed.
Disruption in Coverage
One of the crucial advantages of having Health Insurance is that people get uninterrupted coverage throughout the policy period. While the policy is active, the policyholders can be rest assured that their medical bills will be taken care of.
However, without timely renewal, there comes a risk of gap in the coverage. As we cannot predict uncertainties, health emergencies can happen at any time. Hence it is wise to have a continuous Health Insurance cover by renewing it on time.
Monetary Effects
Health of an individual has direct effects on the premium. As people age, the associated health risks might also increase. As a result, the premium one has to pay could be higher with an increase in the age. Moreover, many insurance companies mandate pre-insurance medical screening of individuals before purchasing a new policy to evaluate their health status, which has direct implications on the premium.
However, if one purchases a policy and renews it periodically without any gap, they do not have to go through the pre-insurance medical screening again, as a result, there will not be any steep increase in the premiums.
Things to remember while renewing Health Insurance
Renewing the Health Insurance policy on time is crucial. However, due to our busy schedules, we may tend to miss out on renewals before the due date, due to which the policy may get lapsed. To avoid this, insurance companies offer an extension of the renewal deadline up to 15 or 30 days after the expiry of the policy. This extended period is called Grace Period, during which the policyholders can renew their policies without any penalty. But it is important to note that no claim can be made during this period.
During renewal, the insured can revise the policy and alter the coverage and benefit like Sum Insured, add-ons, etc., based on their requirements. People can also include or remove family members from their existing policy. Also at such times, one can switch their individual Health Insurance policy to a Family Health Insurance policy or vice versa, per the policy's terms and conditions.
Renewal plays a crucial role in tackling medical expenses, especially in our current times where medical inflation is very high. Renew the policy on time and never miss out on continuity benefits.
Disclaimer: No Asian Age journalist was involved in creating this content. The group also takes no responsibility for this content.
