Health insurance is, in essence, an investment for your own future and for your own financial security. The policies are typically provided as one-year contracts between the insurer and the insured, and renewing the policy means that you wish to continue being protected under the plan. See, we present the top 4 most important reasons for you to keep renewing the policy every year :
1. Initial waiting period
Most policies do not cover the insured person for the first 30-90 days of signing the policy, depending on the policy. This means that during this time, the insurer will not entertain any claims by the insured person. So, if you do not renew your insurance, the policy will lapse, and you will have to undergo the same waiting period once again to be eligible for insurance benefits.
2. Pre-existing condition
Insurers usually have a 2-4 years of waiting period before they can cover pre-existing conditions like diabetes, heart conditions, etc., in case of a regular health plan. For example, if you have a heart condition and a waiting period of 4 years to be eligible for the benefits. Suppose you renewed your policy for three years and did not renew for the fourth year, then your entire waiting period gets wasted and you will need to wait for another four years to be eligible again. Not renewing your policy makes you instantly vulnerable to deep financial loss and loss of time.
3. Loss of bonus/discounts
Most health policies have no-claims bonus and discount offers built into the policy. This means that for every year of ‘no claims made,’ you get a bonus (an increase in your sum insured) for the same premium. Or, you may get discounts on your premium during renewal for every year that you make no claim. Not renewing the policy means that you forfeit these benefits and you will have to go through the same process with the new policy.
4. It helps during porting or migration
Porting or migration of an insurance policy is possible only at the time of renewal with a 45-days advance notice to the insurer about your switching plan. Porting and migration allow you to carry forward the benefits accrued in your previous policy to the next one including bonuses, sum insured, etc. These benefits are credited only if the policy has been renewed every year. While the process of porting/migration happens, it is essential that you pay the renewal premium else the policy lapses.
OneAssure is a distribution platform that helps you make right decisions on matters where health and finances converge. Visit oneassure.in to know more about your health insurance choices.