When Should You Upgrade Your Health Insurance Policy?

Staying healthy and fit is an ongoing process. One day you are healthy, and the next moment you are diagnosed with an illness. It may be shocking, but you need to get treated for it. While the increasing cost of healthcare facilities does not make it easier, a health insurance plan acts as a safety net to safeguard your finances.

Moreover, the coronavirus pandemic had made all of us vulnerable. Thus, it has become even more critical to buya health insurance policy. You cannot overlook the importance of one and form part of a successful financial planning process. With each year seeing newer plans coming with various features, your plan may not be satisfactory. Those contemplating switching their insurance policy, Insurance Regulatory and Development Authority of India (IRDAI) allows portability of plan. 

Here are some signs when you should upgrade your health insurance policy – 

Premium vis-a-vis coverage of your policy

Premium in comparison with the sum assured is the first thing to look when considering the change. If a different insurer offers similar features of your policy at a cheaper cost, it is advisable to make the switch. On the other hand, if better features which are useful for you healthcare needs are made available by the competitors, you should upgrade your policy. 

Inclusions and exclusions of the policy

Oversight or haste can sometimes land you insurance policies with a significant amount of sum insured but with a list of terms and conditions. In case you have such a policy, it is advisable to switch to an insurer with more transparent conduct. Moving to a transparent insurer will avoid limitations like room rent capping or co-payment at the claim. Further, insurance plans that cover daycare procedures go a long way as all treatments do not require hospitalisation for more than 24 hours. It is needless to say, that you should prefer a policy with lower exclusions while considering all the necessary inclusions. Explore plans such as critical illness insurance & health insurance for senior citizens to address= more specific inclusions.

Insurer’s reputation and claim settlement ratio

There are a myriad option of insurance companies to choose from. So do not go for an insurance company that offers the cheapest deal. Instead, do your research on the insurance company’s reputation. Visit the regulator’s website and check for its registration too. A reputed insurance company will have more satisfied customers which will help you get an idea about the claim settlement process. One metric that assists in comparing is the claim settlement ratio that signifies the number of claims settled to the applications received. 

Network hospitals

Using the cashless feature under your insurance policy is only possible at one of the network hospitals. So when you are upgrading your insurance policy, have a look for the list of network hospitals in your vicinity. This feature is beneficial when purchasing health insurance plans for family

Waiting period and renewability

A waiting period is a duration for which no claims can be made after purchasing the policy. While porting, ensure you do not have to serve the entire waiting period with the new insurer and only the incremental period. Lastly, do not forget to purchase plans with lifelong renewability. Not only help get coverage for a lifelong period, but also keeps your premiums in check.

To conclude, these are some of the noteworthy features to check when upgrading your insurance policy. Make a prudent choice and always stay insured.

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