Early renewal of your health insurance policy ensures safeguarding you against critical events and maintains peace of mind. Choosing the best health insurance in India and on-time policy renewal are crucial to avoid claim rejections.
Also, you can continue to avail the ongoing benefits of the waiting period and cumulative bonuses. However, studies suggest that approximately 1 in 10 policyholders has already missed a policy renewal in the current financial year, resulting in temporary coverage loss.
Health insurance policy renewal before expiry will thus be a smart financial decision. Continue reading this to learn more about the renewal policies.
7 Key Benefits of Renewing a Health Insurance Policy Early
Here are the key benefits of health insurance policy renewal before the expiry date:
- Uninterrupted Coverage
On-time renewal of a health insurance policy ensures adequate coverage without any lapse. This works well during medical emergencies.
- No Waiting Period
To avoid any waiting period, make sure to renew your health policy before it expires. You can only choose a new policy after there is a lapse in coverage.
- Accumulated Benefits
Renewing your health insurance policy early lets you retain the benefits accumulated. This includes the advantages of a no-claim bonus and waiting period for pre-existing conditions.
- Avoid Penalty Payment
Health insurance policy renewal on time lets you avoid penalty charges and fees. These charges, however, apply if the policy expires.
- Pre-Existing Conditions
On-time renewal helps in maintaining comprehensive coverage for pre-existing conditions. Under these circumstances, you do not need to requalify for insurance.
- Avoid Reassessment of Medical Conditions
If your existing healthy insurance policy lapses, you might need to undergo new medical tests and underwriting. This will result in a high premium and an increased risk of claim rejection.
- Peace of Mind
If you are renewing your policy early, your stress will be balanced. You will also remain prepared for facing further unexpected medical costs.
4 Factors to Consider During Health Insurance Policy Renewal
Here are the factors to consider during health insurance policy renewal:
- Assessing Coverage
Find out whether your existing coverage aligns with your healthcare requirements. If your medical expenses are higher, opt for an increased sum insured.
- Explore Policy Options
Continue exploring policy benefits. Find out whether the policy covers maternity benefits or critical illness riders. Including this kind of coverage enhances your policy.
- Switching Between Insurers
If you are dissatisfied with your current insurer, you are liable to switch to another policy issuer offering exclusive benefits.
- Premium Costs
Make sure to choose a premium amount aligning with your budgetary requirements while ensuring adequate coverage.
Documents Required for Online Renewal of Health Insurance Policy
The list of documents required for health insurance policy renewal in India includes:
- Date of birth
- Policy number
- Details of the previous policy
Providing these details will help streamline the renewal process, making it easier to manage.
What Happens If You Fail to Renew a Health Insurance Policy Before Expiry?
You may face severe consequences if you fail to renew your health insurance policy before it expires. Your insurance plan might be discontinued with all its accompanying benefits. In other words, you will not be eligible to file claims or opt for reimbursement of medical bills and cashless hospitalisation benefits.
Nevertheless, you will receive a grace period if you miss the renewal deadline. This grace period varies among insurers, and you can renew your policy to enjoy the benefits of the waiting period and no-claim bonus. However, you cannot make claims within this grace period.
3 Points to Consider While Renewing Your Health Insurance Policy
Health insurance renewal is a crucial step towards maintaining uninterrupted, comprehensive coverage. Keep the following points in mind:
- Evaluation of Coverage Needs
Evaluate your healthcare needs annually to obtain adequate coverage. If medical costs are high, consider increasing the sum insured or adding top-up plans.
- Add Riders
During the policy renewal period, include add-ons such as maternity benefits, critical illness coverage, and personal accident insurance for protection.
- Go through the Policy Terms
Before renewal, review the policy terms and conditions. Any changes made should be approved by IRDAI and notified to you at least 3 months before expiry.
Bottom Line
Early renewal of a health insurance policy lets you gain uninterrupted access to healthcare and other safety measures during medical emergencies. Also, it helps preserve your accumulated bonus and experience, and provides the same coverage benefits during the waiting period.
If you are a policyholder of the best health insurance in India, timely renewal will safeguard you against high premium payments. Also, by renewing early, you can stay ahead of unforeseen circumstances, enjoy long-term benefits, and maintain peace of mind
