Health insurance is a serious investment. It is important that you invest in the right policy so that you can enjoy the best medical services throughout the year. There are many benefits that a health insurance plan offers, for example, cashless treatment, income tax deductions under Section 80D of Income Tax Act 1961. But, what if you invested in health insurance and later on figured out that your insurer is not up to the mark?
Portability is your solution. IRDA introduced portability in 2011. You can easily switch from one plan to another, if you are not happy with the services of your insurer. There is a possibility that you find a new policy that suits your needs in a better way. Under portability, the credit on continuity of the coverage would be passed on from the previous insurance policy to the new insurance policy. There are some things you need to check before you port your health insurance to another policy or insurer. Now, portability might look like a better option if you are looking for better services and benefits. However, it is essential that you consider the following checks before opting for a portability service:
- Medical history
Your application mightbe rejected if there are any pre-existing diseases. It might also be rejected if there is any health problem that requires frequent hospital visits. Insurers might ask you to go through some pre-policy medical tests if you are above the age of 45 years. The new insurer can reject the application if you have any lifestyle-related diseases like diabetes or blood pressure.
- Waiting period
There are 3 types of waiting periods in the medical insurance policy. First one is 30 days that stands for fresh or new policies. The second one is for diseases such as kidney stones and appendicitis that are covered after a period of 1 or 2 years. The third waiting period is of 4 years for pre-existing ailments like the type 2 diabetes and heart diseases. Let us understand by example.
The waiting periods of 30 days and 2 years will not be applicable if you want to port a 3-year old policy after 2 years. Since you have already completed 3 years with the previous insurer, you will have to wait for 1 year for claiming pre-existing conditions. It is also recommended that you understand the fine print to know all about the insurance claim process.
People tend to port their policies because of low premiums or to receive better coverage and more services. But, in the process of fulfilling this need, insurers might not provide the same coverage. Due to this, in the long run, people end up paying more to cover their needs.
You must make sure that you have all the documents of the previous insurer before applying for portability. As per the rules, you must apply for portability at least 45 days before the date of health insurance renewal.
Portability is sure to maximize your benefits. But, you must check mentioned details in the above list, so you don’t face any rejection. Also, make sure that you apply for portability at the right time. Keeping in mind the above factors, you can enjoy the benefits of portability.