FINDING A BETTER FIT

Switch health insurers at renewal to keep benefits such as waiting period and bonus, but weigh drawbacks

The significance of health insurance in financial planning has become more pronounced post-pandemic. Unplanned healthcare costs and medical inflation can lead to financial instability if one's savings are insufficient. This underscores the necessity of selecting a health insurance plan with adequate coverage, both in terms of the total sum assured and the comprehensiveness of the coverage.

Often, after purchasing a health insurance plan, policyholders might discover more favourable options - either from another insurer or within the same company - that offer better coverage for illnesses, lower premiums, higher sum assured, or superior claim services. This raises the question: is it possible for an individual to switch to a different health insurance provider or to another plan from the same insurer without forfeiting existing benefits?

One critical aspect of health insurance is the particularly valuable renewal benefits. These benefits include coverage of pre-existing conditions after a waiting period and loyalty bonuses in the form of additional sum insured.

Addressing this need for flexibility, the Insurance Regulatory and Development Authority of India (IRDAI) introduced health insurance portability in October ’11.

WHAT IS HEALTH INSURANCE PORTABILITY?