8 Major Reasons Why Reviewing Health Insurance is Paramount
Updated On Feb 12, 2021
Health insurance gives you the best way to cover you and your family financially against uncertainties. It enables you to avail protection against health hazards as well as save taxes. However, to draw the best from your health insurance, choosing a suitable insurance product in line with your changing health care needs is paramount.
One of the effective ways to get the best from your policy is to review it. Reviewing the policy closely helps you stand closer to a tailor-made product, especially at the time of purchase. Loads of options are available when it comes to a plan, but reviewing the insurance portfolio is significant because your requirements keep changing through different junctures in your lives, ranging from changes in your assets to liabilities, etc. That’s why it is crucial to design insurance portfolio and review it at regular intervals.
After all, a health insurance plan is a yearly renewable contract. When you skip to review it every year, you would miss out quite a few things.
1. New Features & Benefits
With the help of the digital transformation of businesses, new-age insurance companies are introducing some more innovative insurance solutions digitally. They are adding more products with newer features and benefits every year. At times, these products are tailored to cater to your current requirements. With conducting a review of the policy, you can come to know about these new entrants in the health insurance space. And these innovative features can come your way.
2. No Claim Bonus
Almost every reputable insurer offers a good percentage of No Claim Bonus (NCB) for every claim-free year. This bonus can range between 100% to 150%. If you skip reviewing the policy, chances are you miss out these NCB benefits or receive less NCB. In such a case, you may end up paying higher premiums.
3. Pre–Existing Diseases (PED)
Failing to review your health policy could lead to impacting your PED. For instance, say 2-year waiting period is applicable for the disease like cataract. By reviewing the plan on a yearly basis, you might come to know about an insurance company that is providing customers with a much lower waiting period on the pre-existing diseases than your existing insurer and that too at lower premiums.
4. Health Condition
It may be that your current insurer is not covering lifestyle disease like diabetes, whereas there are certain policies that do or give you an option to add diabetes to the policy coverage benefits. If you review your policy before renewing it, you can port your policy or choose the one that covers lifestyle diseases.
5. Lifestyle Changes
How you live your life shapes your health. Plenty of things influence your health condition such as age, work environment, lack of exercise, stress level, diet, living conditions, habits (smoking and many behavioral factors). The costs of health care are greatly affected by lifestyle changes. With the possibility of developing various diseases year on year, it’s wise to review the health insurance policy and customize it accordingly.
6. Coverage and Premium
Competition in the health insurance industry is intense. Due to the fierce competition, health insurance companies tend to revise coverage benefits for more diseases and ailments. For example, no cover under health insurance was available for cataract, but it is now covered under daycare treatment.
7. Marriage & Parenthood
Some changes happen in every phase of your life and so does health insurance. Your policy needs changes with some major events taking place in your life. For example, you were single when you bought your policy. But you got married at the time of renewal of the policy. So, now you have additional responsibilities. In this condition, you need to enhance your cover and opt for a family floater to meet all healthcare needs under one umbrella.
In addition, if you are planning a family or on your way to parenthood, re-evaluating your healthcare needs is necessary. It’s good to review your plan and make sure if there is an option to cover newborn baby expenses at the time of plan’s renewal.
Like in case of marriage and parenthood, you may tend to change your policy coverage when it comes to divorce. If you wish to remain single and don’t want any dependents, it necessitates a review of your health insurance portfolio to reduce the cover.
With the above information, we have reached a conclusion that reviewing health insurance is a must. If it’s skipped, you can get less than necessary. Change of job, marriage, retirement, parenthood are some of the major life-changing moments make reviewing health insurance paramount.