Go from illness to wellness with quick premium renewal
Accumulated no-claim bonus and advantage of having crossed waiting period are lost if you fail to do so
The Covid-19 pandemic has taught Indians not just the significance of buying health insurance but also renewing their policy on time.
A recent study by Policybazaar showed that in 2021-22, 85 per cent of their customers renewed their family-floater policies, and 80 per cent renewed their individual health policies, on time. Furthermore, 60 per cent chose to bolster their coverage with riders.
Lifelong renewability benefit
Timely renewal allows policyholders to avail of the benefit of lifelong renewability.
Kapil Mehta, co-founder, Securenow Insurance Broker, says, “If you don’t renew on time, and you have developed a health condition, the insurer can refuse to renew your policy. It can’t do so if you renew on time.”
Renewing on time is also essential if you wish to port or buy a top-up.
“Porting can only be done 45-60 days before the date of expiration,” says Amit Chhabra, headhealth insurance, Policybazaar.
Failure to renew means you have no coverage. The no-claim bonus (NCB) accumulated in the policy is lost. You may also have crossed the waiting period for pre-existing diseases. This benefit is also lost.
Buying a new policy would mean undergoing fresh underwriting.
Fortify coverage with riders
Many customers nowadays opt for riders at the time of renewal. One rider you could consider is critical illness.
Dilshad Billimoria, board member, Association of Registered Investment Advisers, says, “This rider can help cover the heavy costs that arise in the case of critical illness. It pays a lump sum on diagnosis. This is over and above hospitalisation. It can also substitute for a loss in income.”
Most health policies don’t cover the cost of consumables (syringes, gloves, etc).
Naval Goel, chief executive officer and founder of Policyx.com, says, “Pre-pandemic, consumables accounted for 3-5 per cent of the medical bill. Now, their share has increased to 25-30 per cent.”
Having this rider will mean you don’t have to pay for this expense from your pocket.
Policyholders who don’t make an insurance claim in a particular year are rewarded with an NCB. “Nowadays add-ons are available that can enable bonus accrual at an accelerated rate,” says Ashish Yadav, head of products, Manipalcigna Health Insurance Company.
Avail of wellness discount
Many health insurance policies now come with wellness benefits — reward points the insured collects by undertaking fitness activities, such as walking. These points can be used at the time of renewal to get a discount on the premium.
Younger people, in particular, can make the most of this feature.
Debashish Roy, associate director, Anand Rathi Insurance Brokers, says, “Buy a health policy at a young age. Since the probability of making a claim is lower, you will avail of NCB. In addition, you can accumulate wellness points to get a discount on the premium.”
These wellness points can also be used to avail of medical tests and check-ups at network hospitals.
“You could get a discount of 2040 per cent on these services,” says Mehta.
Port to policy which has better features
Even if the last date for policy renewal has elapsed, you still have the grace period.
“If you pay within the grace period, you can keep the policy alive and enjoy all the continuity benefits,” says Yadav.
The grace period is 10 days for policies where the premium is paid monthly, and 30 days where it is paid quarterly, half-yearly or annually.
Policies with better features are launched every year. Consider porting to one of them at the time of renewal. “Some health providers are offering newer plans with reduced premiums for a similar sum insured. Check them out,” says Billimoria.
You could also look for a policy offering guaranteed bonuses.
“Each year your sum insured goes up by a certain percentage at no additional cost. This will protect you against medical inflation. This bonus is offered, irrespective of whether claims are made,” adds Yadav.