Are you unhappy with your health insurance? Here’s how to transfer your coverage without losing your benefits
New Delhi: If you are unhappy with your existing health insurance policy or feel that the benefits you get from your health plan are not worth the premium you pay, you have the option of transferring it to another insurer for a better plan. In this case, the no-claim bonus on the existing policy is also transferred.
Health insurance policies can be transferred to another insurer while continuing the benefits accrued from the existing policy. For example, if in your current health plan some treatments are not covered for the first two years and one year has already passed, then in the new policy offered by another insurer, the waiting period for the same salary will be reduced by one year. It should be mentioned here that the same benefit will not apply to a senior health insurance policy.
It is easier to carry the health insurance plan of a young person than of a senior. Companies are often reluctant to adopt senior plans because the waiting period is either reduced or eliminated entirely and the liability of the new insurance company comes into effect sooner.
It may be noted that people with chronic illness or who have been hospitalized in the past may have limited options when it comes to Medicare portability.
Will the benefits continue?
Yes. Portability is permitted under all individual indemnity health insurance policies issued by general insurers and health insurers, including family floating policies. In this case, the continuity benefits are offered on exclusion limited in time up to the amount of the previous sum insured.
What are the advantages of carrying instead of taking out a new policy?
• New sum insured – Regarding portability, the sum insured and the accumulated bonus will be added, to determine the new sum insured. In addition, the existing no-claims bonus will also be added to the new sum insured.
• Continuation of previous advantages – All benefits under the old policy will remain in effect under the new policy.
• Lower policy premiums – Due to the myriad of policies offered by many insurance players, if you wear your policy, your new insurance provider will likely give you the existing benefits you had in your old policy for even lower premiums. This will lower the cost of insurance and help save more money.
• Transparency – As the policyholder has the option of switching to a new service provider, they would have the option of transferring their policy to an insurer that follows transparent practices, with no conditions or hidden clauses.
• Personalized policy – Insureds have the privilege to modify their existing policy according to their health needs, for example by opting for additional coverage according to their current lifestyle and state of health, or by changing their applicants.
• Exclusions limited in time absent – Policyholders don’t have to worry about time-limited exclusions when carrying their policy.
• Better claims settlements – If policyholders find the claims settlement process very slow and cumbersome with their old insurer, they may experience better service with their new insurer, depending on the insurer’s claims settlement ratio.
Will the premium change?
The premium for the new policy may vary depending on the new insurance company’s underwriting process for the product in question. “The premium is calculated according to the age, geography, state of health and sex of certain products. However, the premium may differ from one insurer to another depending on the coverage, general conditions, sub-limits / no sub-limits, room capping and waiting times