Are you stuck with a health insurance policy that feels more like a financial burden than financial assurance? Well, health insurance, undoubtedly, is a critical part of financial planning, owing to the protection it offers against high medical costs while ensuring timely and quality treatment. Is your current health insurance plan no longer suitable for your needs? In such cases, what should you do? Is there an option to port your health insurance to another insurer without losing your accumulated benefits? Of course, there is an option.
Let's talk about everything you need to know before making the move!
What Is Health Insurance Portability?
Health Insurance Portability is a process that lets you switch from one health insurance plan to another without losing benefits like waiting period credit, No Claim Bonus (NCB), and free medical check-ups.
Common Reasons Behind Porting Health Insurance
Policyholders happen to port their health insurance for several reasons, including the following:
- Better Coverage Options: Does your current plan offer limited coverage or lack important features like critical illness riders, maternity benefits, or higher room rent limits? With portability, you can upgrade to a better plan without starting from ground zero again.
- Inadequate Service: In case, Are you disappointed with the delayed claim processing with your current policy? You can choose to switch your insurance provider.
- Lower Premium for Similar Benefits: Do you feel that your premiums are too high for the extent of coverage the plan offers? In today's cut-throat competitive market, you are most likely to find an insurance provider that offers the same or better coverage for a lower premium.
- Addition of Family Members: Are you planning to move from an individual plan to an Individual & Floater Cover option? With portability, you can not only switch but also retain benefits while restructuring your coverage.
Porting Health Insurance - Important Things to Keep in Mind
Are you planning to port your health insurance lately? There are several factors you must keep in mind to avoid surprises (bitter ones, of course) later. Jokes apart - let's read on!
- Portability Can Only Be Done at Renewal: You cannot port a policy mid-term. You should apply for portability with your current insurance provider at least 45 days before the renewal date of your current plan. However, make sure it is no earlier than 60 days in advance.
- Your Existing Benefits Are Protected: When you port an existing health insurance policy, several benefits, such as waiting period credits for pre-existing diseases, NCB, etc., are carried forward to the new policy, provided there is no lapse in coverage.
- The New Insurer Will Do Risk Analysis: Simply opting for health insurance portability does not mean acceptance from the new insurer right away. The new insurance company is likely to review your application, medical history, and claim record (if any) before approving your application to port. Moreover, they can also put certain conditions or adjust premiums based on risk assessment.
- Sum Insured and Bonus Transfer: The new insurer will keep your current sum insured plus any no-claim bonus accumulated intact. However, any additional coverage may be subject to fresh waiting periods.
- Policy Terms and Conditions May Differ: Although you will retain certain benefits, the new policy will follow its own terms and conditions. So, make it a thumb rule to read the fine print carefully before signing up.
Port Your Health Insurance Plan - The Process
Take a look at the pointers below to have a clear idea about the steps you need to follow to port an existing health policy:
- Step 1: Compare Plans - Research and shortlist insurance providers in the first place. And while comparing multiple insurance companies, do consider parameters like coverage features, premium amount, claim settlement ratio (CSR), network hospitals, and additional benefits (if any). It will help you find a plan that meets your needs.
- Step 2: Apply for Portability - Fill in the portability application at least 45 days from the current policy’s renewal date. Always make sure to provide all details about the new insurance provider.
- Step 3: Fill out the Portability Form - Always ensure that relevant documentation is done in the first place. All details must be correct on the proposal and portability application. Attach policy copies, renewal notice, and claim history (if any) along with the form.
- Step 4: Record Transfer Between Now and New - Your ‘present’ insurance company will share all the relevant policy details and claim history with the 'new' one through the IRDAI portal for review.
- Step 5: Medical Test - The insurance company with whom you want to port your existing health insurance will likely do a medical test, if needed. It mainly depends on your age, health, and sum insured.
- Step 6: Acceptance- Once your portability request is accepted by the new insurance company, you will need to make the payment towards the premium. Always make a note that there is no gap between the old and new policy to retain continuity benefits.
The Benefits of Porting Your Health Insurance
Let’s take you through the best benefits of health insurance portability:
No Reset On Waiting Period: If you have already completed a waiting period with your old insurance provider, the accumulated period is likely to be carried over to your new provider. This way, you do not need to start all over again.
Example: If your old health plan had a 2-year waiting period and you’ve already completed it, when you switch to a new insurer, you don’t need to wait again; coverage starts right away
Freedom to Choose What Fits: According to your wish, you can switch plans that fit well with your current health requirements and financial situation.
Better Benefits: It helps you in upgrading plans with improvised features, such as useful add-ons, wellness perks, and higher coverage options.
Tailored to Your Needs: You can also adjust your policy type according to your needs. For example, you have an individual cover now. With portability at hand, you can move to an Individual & Floater Cover, or the other way around.
Final Words
Health insurance portability is a powerful benefit for policyholders. It lets you switch to a health insurance policy that aligns with your needs. And the best part is - you do not have to lose the years of benefits - like waiting period credit, No Claim Bonus (NCB), and others you have already accrued.
However, before you port your health insurance from the now to the new, make sure to take time to compare your options, and start the process early to ensure zero gap in policy continuity.
FAQs
Do all insurers accept portability requests?
Insurers have the right to reject a portability request based on their underwriting guidelines, claim history, and health risk assessment.
How long does it take for porting to be completed?
It typically takes around 15 to 30 days to complete the process.
If I switch from Insurer A to Insurer B, will my premium remain the same as my old policy?
Not necessarily. Your policy premium depends on the new insurance provider’s pricing, which usually depends on your age, health condition, and sum insured.
What documents are needed for health insurance porting?
The documents you would need are - your current policy documents, ID proof, address proof, and medical history (if applicable).
