A Guide to Health Insurance Renewal

Posted on: Feb 19, 2019 | | Written by:

A Guide to Health Insurance Renewal

Published on February 19, 2019. EST READ TIME: 4 minutes

Imagine, last year you had bought your first health insurance policy, it means this year its due for renewal. Last year you had covered yourself and family with a medical insurance, how about continuing the trend and renewing policies online instantly to enjoy continuity benefits. Buying health insurance means you have taken one of the most important steps of securing your family from any medical emergencies. However,when you renew health insurance every year it means you are being responsible enough to continue offering that care and protection to your family.

Why is it important to renew health insurance policies?

1. Continued benefits

Health emergencies can occur at any time. That is why health insurance renewal needs to be on time. If you miss it, you may face difficulties to cover the expenses arising at the time of treatment.

2. Tax Benefits

A medical insurance plan comes with tax benefits under section 80D of the Income Tax Act 1961. This is availed against the health insurance premium that you pay. So,it is important to have a valid insurance policy in place to maximise savings in the long run.

3. No Claim Bonus Benefits

No Claim Bonus (NCB) is a discount offered to insured individuals for every claim-free year. If a policyholder does not raise any claim during a given year, he/she is eligible for a higher sum insured or discounts on the health insurance premium in the subsequent year.

How can renewal be done online?

For health insurance renewal online, follow these steps:

• Step 1: Visit the official website or app of the insurance company

• Step 2: Click on therenew health insurance tab or section.

• Step 3: Fill in your personal details.

• Step 4: Check the policy details and its renewal premium.

• Step 5: Pay the premium using your debit or credit card or net banking.

The health insurance renewal online process might vary from insurer to insurer, however, more or less the above steps are common.

Things to remember to renew health insurance

Consider the following points before health insurance renewal:

1. Grace Period

A small timeline that insurance companies offer after the due date for paying health insurance premium is known as grace period. A policyholder has to make the payment within this timeline given by the insurer. The grace period varies between insurers. It is an important factor to consider before health insurance renewal because it gives you enough time to complete your payment for health insurance premium.

2. Inclusion or exclusion of family members

Family members can be included or excluded at the time of health insurance renewal. This helps policyholders get better coverage for their family members.

3. Better sum insured

You can increase the sum insured while health insurance renewal. This can be done by paying an extra health insurance premium, which is more economical, comparatively, than buying a new health insurance plan.

4. Porting of policy

Policy portability is a feature through which a policyholder can transfer his/her health insurance policy from one insurance company to another. This helps you to shift to a new health insurance company with a lower premium while keeping the ongoing benefits intact. As per IRDAI guidelines, portability is applicable to all health insurance policies.

5. Read the health insurance renewal terms

Check the renewal terms before health insurance renewal. This will help in being aware about policy changes and help you plan your finances accordingly.

Does the insurance renew itself or not?

For every health insurance policy, you have to renew it on yearly basis (in case of annual plan).

Conclusion

Keep the above points in mind before you decide to renew health insurance plans. But it is very important that you complete health insurance renewals on time to keep continuing the benefits. A medical insurance is essential for you to be prepared for unforeseen health emergencies.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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