Benefits of Health Insurance Portability
Published On May 01, 2021, Updated On May 02, 2021
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Customers in the telecom industry recently received a boon when a new regulation enabled mobile number portability from one service provider to another. It was nothing short of a revolution with a two-fold profit. One, a customer no longer wanted to change their mobile phone number when terminating service with their current provider.
Benefits Of Health Insurance Portability
Two, the service provider became more adamant about providing high-quality services to customers. The bonuses were mostly for the benefit of the consumers. That is what the convenience of portability entails. The good news is that you have a similar privilege in your health insurance as well, if you are conscious. That means you can switch your policy to a new insurer while retaining nearly all of your benefits.
The following are some of the most important advantages of health insurance portability:
- Almost all pre-existing condition clauses will be taken into account by the new insurer – including the time passed until all diseases are covered.
- The minimum initial waiting period can be waived by the new insurer before no coverage is offered.
- Other bonuses and the minimum amount insured will, for the most part, remain unchanged when you switch insurers. You may also opt to increase your guaranteed number.
- The new insurer may offer you additional benefits for switching, such as access to new products and expanded coverage that may be superior to your current policy.
- Although the premium will be high, it is also possible that it will be low. As a result, it's a plus.
- Transferring your health insurance policy from one insurer to another, though, is subject to a few restrictions.
Transferring your health insurance policy from one insurer to another, though, is subject to a few restrictions.
- If you don't pay your premiums on time, your portability application can be denied.
- It's possible that the new insurer would charge you a higher premium than the existing one.
- The request for portability must be sent at least 45 days before the policy's renewal date.
- Only at the time of policy renewal will the policy be transferred.
Health Insurance Portability Exception
During the insurance cycle, the patient receives credit for pre-existing illness waiting periods. The Regulatory and Development Authority (IRDA) has required that the new insurer accept the credit benefit and the waiting period for product portability – but only if the policy has been in force for at least a year with timely premium payments and no defaults.
If you are covered in a high-risk category, the new insurer has the authority to charge a higher premium as part of their underwriting guidelines, regardless of the length of your policy or your daily premium payments. In addition, if you are eligible for a no-claim payment from your current insurer, the bonus will not be paid to you. Furthermore, the new insurer may have its own set of terms and conditions, which may or may not include anticipated benefits. So, before you make the move, make sure you do your homework.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.