What to Check When Porting Your Health Insurance Policy?

According to the IRDAI, all policyholders have the right to port their health insurance policies from one insurance provider to another. And, when you port your policy, you also get to transfer your accumulated bonus and waiting periods, so you won’t be starting from scratch.

There are many reasons why you might consider porting your health insurance, such as if you’re not happy with your current health insurance provider, or you find a better plan out there. But, what should you consider when porting your health insurance policy?

1. Check the Type of Policy

Remember that you can only port your current health insurance policy, to a similar type of policy. You cannot completely change the coverage, plan or type of policy while making the switch. For example, you can’t shift from individual health insurance to a family health insurance.

However, it is still important to thoroughly understand the coverages and exclusions of the new policy so that you don’t have any surprises. Also check the new plan’s co-payments, room restrictions, deductions, and sub-limits.

2. Inform Your Previous Insurer

It’s important for you to notify your current insurance company that you plan on porting your policy before you shift. This must be done in writing, and at least 45 days prior to (and not before 60 days) your policy is due for renewal.

Don’t forget to mention the insurance company to which you want to shift, as well as any other details that might be required. Once you have informed your current insurance company, they will acknowledge your request to port your health insurance within 3 days.

3. Ensure There Are no Gaps

You can only port your health insurance at the time of policy renewal. Since you need to inform your current insurer at least 45-days before renewal, you will need to have finalized a new policy before this time. So, don’t wait until the last moment to port your cover.

Additionally, if your policy has lapsed, your proposal to port might be rejected, and you will have to get a new health insurance policy from scratch. This means that you will lose your benefits like waiting periods and cumulative bonuses, and you may also be left unprotected in case of a medical emergency.

4. An Additional Grace Period

After you apply for a new health insurance policy, your new insurer will have to let you know if it has been accepted or rejected within 15 days.

While your health insurance porting is under process, you are entitled to get a 30-day grace period. During this period, you still have time to renew your existing policy if the new insurer fails to inform you in time. This is to ensure that that you have continuous coverage.

5. Increased Sum Insured

Generally, when you port your health insurance, it is the responsibility of your new insurer to give you a sum insured that at least matches the one you had previously. Therefore, if you had an insurance of ₹5 lakh while porting to a new insurer you should still have that much.

But, you can also opt to increase your sum insured while porting your policy. This will need to be approved by your new health insurance provider, and they might require you to have a waiting period before you can use the additional SI. So, if you increase your SI from ₹5 lakh to ₹7 lakh, you’ll be entitled to coverage up to ₹5 lakh during the waiting period, and the additional ₹2 lakh will be available after that.

6. Check the Premium

A lot of people decide to port their health insurance policy because they find one with a lower premium. However, while it is always great to find ways to save money, sometimes the lowest premium isn’t the best option. Ensure that the policy is offering you all the coverage, features, and benefits for your healthcare needs, otherwise, you might end up paying more at the time of a health emergency.

7. Coverage and Add-Ons

Another major reason that people might wish to port their health insurance is when another health insurance provider offers better coverage or benefits than the current one. For example, if you’re looking for a maternity add-on cover but your current health insurance doesn’t have this, you might wish to find a provider who does.

Just remember to evaluate all the benefits, coverage, and add-ons from at least three insurers before you port your policy so that you can make sure you’re getting the best option.

8. Waiting Periods

We have already mentioned that when you port your health insurance policy, you can also transfer your waiting periods. This means that you won’t have to go through the waiting periods for anything that was covered under your previous policy, including specific illnesses or pre-existing diseases.

However, if you have opted for a new coverage while porting, and this also has a waiting period (for example a new maternity cover) then you will have to complete this new waiting period with your new insurer.

9. Consider Your Age

As a person gets older, the chances of health risks are more likely to increase. This means that they will need more care for illnesses, injuries, and other medical conditions, and accordingly, their health insurance premiums will also increase.

So it is important to consider your age while porting a health insurance policy, as you might end up paying a much higher premium than your current policy due to loading. This is especially true if you’re above 60, as the insurer might be reluctant to approve your porting application.

10. Medical History

If you have any medical conditions or health problems that require frequent hospital visits (such as heart problems, diabetes, renal failure, or high blood pressure) in the time since you bought your previous health insurance, a new insurer might end up rejecting your portability request, as they will label you a high-risk individual.

In addition to this, a new insurer might also ask you to undergo medical tests (especially if you are above 45 years of age), which will uncover any new medical conditions that may have emerged. In such cases, it might be better to stick with your current insurer who is already be covering you for these issues.

A health insurance is an essential financial safeguard in case of unexpected medical emergencies. It helps you protect your hard-earned savings and also enables you to get the best medical treatment without worrying too much about the cost.

But, if you’re not satisfied with the health insurance policy you currently have it might be time for a change. While it is very easy to port your health insurance policy (and carry forward your benefits) these days, remember to keep these points in mind before porting your health insurance policy to ensure that you get the best coverage you can.