The health insurance policy has become a must-have for every individual. There are different types of health insurance plans like individual health insurance, family floater insurance plans, critical illness health insurance plans, etc. Even the companies are offering group health insurance plans that provide coverage of the employees’ medical expenses. Based on an individual’s requirements, they can make the right choices.
As much as it is important to invest in the health insurance plan, it is equally important to renew the policy before it expires.
Why should you renew the health insurance policy before expiry?
- Peace of Mind – Since medical and health insurance costs are on a high rise, having a health insurance policy will give you peace of mind.
- Tax Benefits – Having a health insurance policy will also give you tax benefit in addition to peace of mind. As per Section 80D of the Income Tax Act, 1961, the health insurance policyholder becomes eligible for a tax exemption if they continue availing the health insurance policy. But for this, you must renew the policy on time.
- Insurance becomes Expensive with Age – Another important factor that you must take into account is that, with ageing, insurance also becomes expensive. To avoid this situation, you can opt for renewing the health insurance policy. It offers continuous protection as per the terms and conditions on which you had invested in the policy.
Steps to Renew the Health Insurance Policy
The insurance renewal process has become very simple; you can either opt for offline insurance renewal or get into the online mode. For the offline process, you must meet the insurance agent and discuss with them the policy renewal. They will let you know the right protocol. The next way to renew the health insurance policy is by visiting the website of the insurance provider. Most of the companies now offer online insurance renewal provisions. Here is how you go about it:
- Visit the official portal of the insurance company
- The next step is to enter the previous health insurance policy number and the registered mobile number
- Now, you have to check the policy detail and the policy renewal premium
- Once you have decided, you can make the payment online via credit or debit card or by net banking
Key factors to consider before going ahead with policy renewal
- Take into account your requirements- When you are renewing the health insurance policy, you must also acquaint yourself if there are any new-born diseases for which you might need additional coverage. The best way would be to read the policy or speak to your SPOC, who may guide you in this process.
- Portability option- Before going ahead with the policy renewal, you must check whether the company is offering the leverage to shift your policy plan to a different insurance provider. As per the guidelines of the IRDAI, in case the policyholder is not satisfied with the insurance provider and their services, they can switch to a different insurance provider. But this option is only available at the time of renewal of the policy and that too by informing the insurance provider 45 days prior to the scheduled date of expiry of the policy.
- Review the terms- Before going ahead with the policy renewal, you must check all the terms and conditions. The renewal reminder is sent 45 days prior to the expiry of the policy. The policyholder must check all the details before going ahead with their decision.
Make sure that you renew the plan before the date of expiry of the policy. Usually, the policyholder gives you a grace period of 30 days before the policy lapses. So, make sure that you assess all the details properly before making the final call.