Top Mistakes to Avoid When Renewing Your Health Insurance Policy

In our hectic lives, the possibility of falling ill is quite unpredictable and it consequently needs expensive treatments sometimes. Additionally, a loved one might be afflicted with a chronic ailment requiring long-term care. This is where health insurance comes into the picture. Health insurance is one of the most in-demand insurance today. It ensures that long-term treatment does not lead to financial ruin for families. By paying a nominal premium to the insurer, you can enrol in a Comprehensive Health Insurance Plan that protects your finances from the sudden costs of medical procedures. A large number of people have started buying health insurance at young ages, considering their current medical conditions. However, when it renewing their policies, many make common mistakes that can result in wasted money or inadequate support during emergencies. This blog highlights the common mistakes to avoid while renewing your health insurance.

Not renewing the policy on time

The health insurance policy becomes invalid if you do not renew it on time. You will not have insurance protection or benefits this way. It means you can not file claims or use benefits like cashless hospitalisation or reimbursement for medical bills. Some insurance providers may offer a 15–30 day Grace Period after the policy expires. You can pay the renewal premium and avoid coverage gaps during this time. However, the policy will lapse if you do not pay the premium within the grace period.

Not including family members in the policy

Adding family members to a health insurance policy covers the entire family, including your spouse, dependent children, dependent parents, and dependent parents-in-law. You can contact your insurance provider to add family members to a policy. You may need to provide the family member's name, age, and, medical history if asked. You may also need to pay an additional premium. Family health insurance plans are more economical than individual policies. Family health insurance plans allow you to manage a single policy for your entire family.

Dishonest about the health changes

Honesty is important when buying or renewing health insurance because it helps insurance companies assess the risk of providing coverage and accurately price your policy. Not disclosing pre-existing conditions can result in a denied claim or policy cancellation and could also be considered fraudulent. Hiding conditions can also affect the approval for future health insurance. Health conditions change with time hence it is important to keep track of your conditions and make sure the plan also covers your current conditions which are changing over time. Being honest also means being aware of all the conditions of your health insurance policy, such as waiting periods, co-payments, room rent, and coverage limits.

Not reassessing sum assured

Every year prices of various treatments and services in the healthcare sector increase due to inflation. Hence, it becomes compulsory for every policyholder to reassess the total insured sum. You must compare and select the appropriate amount insured for your health insurance policy. Compare prospective healthcare bills and charges to various sum-insured alternatives to pick a plan that meets your requirements and budget. If you choose a large sum insured for your health insurance, the insurance company will pay you more in the case of a claim. However, the greater coverage will need you to pay higher rates. Finally, review coverage advantages and exclusions to verify that you have enough coverage for your medical requirements.

Review The Terms and Conditions

Before paying the renewal premium, carefully review the specifics of your medical insurance plan. Make sure there are no revisions, as they require IRDAI clearance and should be notified well in advance. The terms and conditions of health insurance plans are regularly updated; while most of these modifications are minor, they could have a significant impact on the chosen coverage. It is best to review the terms and conditions of the insurance policy before renewing it to ensure that it is still the best fit for you.

Conclusion

Now you understand that simply purchasing health insurance policies is not enough. You must also renew them before they expire. Also, when renewing your health insurance, it is essential to reevaluate your insurance needs after taking into account various factors such as health conditions, the addition of a family member, and so on, so that you can include the necessary benefits in your policy or switch to another insurance policy or company. Health insurance coverage enables you to get the treatment without worrying about the cost at the time of discharge. Bajaj Allianz General Insurance Company offers many benefits under a health insurance policy such as Tax Benefits Under Section 80D of the Income Tax Act, 1961*, pre and post-hospitalisation benefits, critical illness cover, and more.   *Tax benefit is subject to change in tax laws ‘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.’