Health Insurance Buying vs Porting – Which is Better for You?

With the health uncertainties, having a health insurance policy is extremely important for every individual. Undoubtedly, with the ongoing pandemic, there has been an increase in the awareness and penetration of health insurance in India. Amidst all this, there are chances that you might not be convinced with your current health insurance plan or the insurer. You may think that you do not have sufficient coverage or support in the dire hours of crisis. Under circumstances like these, chances are that the policyholder may look for another plan or insurer. You must be aware of the concept of mobile porting. But did you know that you can also port health insurance plan from one company to another?

How Advisable is Health Insurance Porting?

Well, rather than buying a new health insurance plan you should first port the plan. Yes, health insurance portability is an option that people do have apprehensions about. Porting health insurance is helpful as it provides continuity benefits in aspects like a waiting period, NCB related increase in the sum insured. It also becomes prudent to know that porting may not be always certain. In case a new insurer is not willing to port any existing health plan, you might look at purchasing an additional policy simply to supplement the coverage. Porting also is on the premise of the willingness of a new insurer to port the existing plan, its conditions of underwriting, etc. In case the insurer does not will to port the plan or the underwriting conditions are excessive then buy an additional new plan. You can also stop the past policy once the waiting period of the new policy is over. It may require a high premium for the waiting period for both the new and existing plans. The biggest benefit is that you stay secured against any hospitalization expenses during the interim. You can now port your current policy to Bajaj Allianz General Insurance Company ensuring maximum benefits and sufficient coverage. * Standard T&C Apply

Important Points to be Considered Before Porting Health Insurance Plan

Now, here is a rundown below to understand those reasons that need to be considered before porting the health insurance plan:

Pre-existing Diseases

A policyholder with any pre-exiting ailment should check with the new insurer whether porting is possible or not. Also, check whether the insured needs to undergo any pre-medical screening. The new policies usually have a waiting period for any pre-existing diseases up to 03-04 years. During this time, the customer won't be able to make any expenses related to the claim. On the other hand, porting can happen with continuity benefits. It means once the waiting period waiver is spent. For instance, if you have a plan that is 03-04 years old, then the waiting period for the PED in the existing plan will be over mostly. So, when you port the plan into a new one, the new insurance company will not restart the waiting period. Rather, you will be treated as if you have spent the 03-04 years in the new plan itself. This may vary from insurer to insurer as per the terms and conditions.

Porting Age

Mostly the insurance companies are hesitant to sanction coverage for anyone who is aged on account of the health conditions and the risks related to it. So, in case a senior citizen wishes to port the medical insurance plan, should consider purchasing an additional new plan. Remember, it is always better to buy or port health insurance plans when you are young.

Change in Sum Insured

There could be chances where a new insurer may not offer the same sum insured as in the existing plan. Under such a situation, the insured should opt for the nearest high sum insured. The differential sum will be treated as if it’s a new applicant. It implies that the terms and conditions in the new plan will apply to the differential amount. A high sum insured needs to meet the medical and underwriting guidelines insured by the new insurance company. Depending on the insurers understating decision, it could be accepted or rejected. During porting, the existing plan needs to be active. Usually porting takes around 45-60 business days to come into effect. The time may vary from insurer to insurer. The insured person should ensure that process of porting health insurance is initiated beforehand, at least 45 days before the renewal date.

The Bottom Line

It is better to port an old health insurance plan when you wish to switch the insurer. Porting health insurance helps to enjoy better features, serviceability, and high coverage. The process of porting health insurance policies is usually seamless. Before, porting the health insurance plan always analyze the reasons for doing so. It is highly recommended to conduct market research before and check out the options available. Having sufficient health insurance coverage is prudent, choose a plan that fulfills all your requirements.   *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.