Why you must renew your Health Insurance Plan?

There can no longer be any doubt in the minds of  people regarding the importance of  buying health insurance coverage for themselves and their loved ones. The increased likelihood of hospitalization due to COVID-19, critical illnesses and skyrocketing medical costs has prompted the majority of Indians to sign up for health insurance.   A health insurance policy covers the insured member's medical expenses for the duration of the policy year. These medical expenses include  cost of day-care treatment, domiciliary hospitalization, pre- and post-hospitalization, and so on, depending on the type of health insurance policy chosen. 

Thus, considering such conditions, we must assess the risks that may arise if the worst occurs. Evaluating potential risks involves putting together a sufficient financial cushion to safeguard the future. However, as important it is to buy a health plan, it is equally important for you to get timely renewal for it as well.  When you renew your health insurance policy on time, you ensure that all of your benefits remain intact and that none of the provisions expires. You can easily renew your health insurance policy online using the insurer's website or any of the online insurance platforms in just a few clicks. Following are some of the reasons why one must not miss on their health insurance renewal. 

1. No Coverage 

If you do not renew your health insurance by the renewal date, your coverage will become inactive. This means, any claim filed during that period will be immediately denied by the insurer and you will have to cover for the hospitalization expenses from your own pocket. Even though every insurer offers a grace period to reinstate an expired insurance policy, you will be unable to file a claim during this time or until your coverage is renewed. Further, if you do not renew your coverage within the grace period, it will lapse, and your only option will be to purchase a new health insurance policy, compromising the benefits of your existing policies. Moreover, given the rising risk of critical illnesses and skyrocketing medical costs, you should not take the chance of remaining uncovered as you never know when you are in need of a health plan.

2. No-Claim Bonus

No-claim bonus is another significant benefit that you may lose out if you do not renew your health insurance policy within the specified time frame. It is not always necessary that if you purchase health insurance coverage, you will file a claim every year. The insurer will reward you with a no-claim bonus for each year you have not filed a claim. In addition to that, the bonus could come in the form of a higher sum insured on your existing health insurance policy or a discount on your health insurance renewal premium. You can only get a no-claim  bonus benefit if you renew your policy during the specified time period. If you do not renew your policy within the given timeframe, your NCB will expire.

3. Medical check-ups

Yet another disadvantage of not renewing your health insurance plan on time is, before insuring you, your health insurance provider may require you to undergo a detailed medical examination. If you keep renewing your insurance, a medical exam may not be required every time. However, if your coverage has lapsed, your insurer may wish to re-evaluate your health conditions before issuing a new policy. This process may cause the purchase to be delayed even longer, leaving you exposed to financial losses in case of a medical emergency.

4. Increased waiting period

When you buy a new health insurance policy, you must wait for a certain amount of time before filing a claim. While there is no waiting period for accident-related hospitalisation, there is an initial 30-day waiting period for illnesses. Further, there is a 2- to 4-year waiting period for pre-existing conditions and other common conditions such as maternity coverage, knee replacement surgery, cataract surgery etc, subject to the policy you have chosen. Now, if you do not renew your policy and let it lapse, the waiting period you served will be wasted because you will have to purchase a new health insurance coverage. This is due to the fact that a lapsed policy cannot be renewed, and you must purchase a new policy.