Category Archives: Health Insurance

Health insurance rule change: Cashless treatment at any hospital from today; how to get it, charges

The General Insurance Council (GIC) in consultation with general and health insurance companies has launched ‘Cashless Everywhere’ initiative to extend the cashless treatment at all hospitals. Health insurance policyholders can now avail of cashless facilities even at hospitals that are not in the network of the insurers.

What is the new rule? How to get cashless treatment at any hospital? ET Wealth Online explains.

Cashless hospitalisation under health insurance: What is going to change?

Until now, a health insurance policyholder could get cashless treatment only at network hospitals with whom the insurance company has tied up. The insurance company settled medical expenses directly with the network hospital. If it is a non-network hospital, the policyholder had to pay the entire amount from his pocket and then go through the cumbersome claim reimbursement process.

Under the ‘Cashless Everywhere’ system, the policyholder can get treated in any hospital they choose through cashless hospitalisation facility. Even if the hospital is not in the network of the insurance company, the insurer will still settle the bill at the hospital, allowing the policyholder to avail of cashless treatment.

Cashless Everywhere: How to get cashless medical treatment at non-network hospitals?

To get ‘Cashless Everywhere’ facility at a non-empanelled hospital, according to the guidelines set by the GIC, there are three rules that health insurance policyholders need to keep in mind:

1) For elective procedures, the customer should inform the insurance company at least 48 hours before the admission.

2) For emergency treatment, the customer should inform the insurance company within 48 hours of admission.

3) The claim should be admissible as per the terms of the policy and the cashless facility should be admissible as per the operating guidelines of the insurance company.

Do keep in mind that the charges at the non-network hospital will be based on the rates that the hospital charges to the existing empanelled insurers.

The cashless facility at non-network hospitals will be effective immediately, says the General Insurance Council on January 24, 2024.

Hospitals with 15 beds, and registered with the respective state health authorities under the Clinical Establishment Act can offer cashless hospitalisation now.

ET Wealth Online first reported about it on December 23, 2023.

Cashless Everywhere facility: How will it benefit health insurance customers?

Currently, 63% of customers opt for cashless claims while the others have to apply for reimbursement claims as they might be admitted to hospitals that are outside their insurer or third-party network, according to the press release by the General Insurance Council.

Earlier, if a customer went to a non-network hospital for his treatment, he needed to pay first and got it reimbursed from his insurance later. In such cases, the onus of collecting documents required for an insurance claim rested solely with the customer. A significant portion of claims filed for reimbursement went through multiple query cycles due to want of critical documents for which a customer would have to coordinate with the hospital multiple times. This often made the reimbursement process lengthy and stressful for many policyholders.

“We feel this puts a significant amount of stress on their finances and makes the process long and cumbersome. We wanted to make the whole journey of claims a frictionless process, which will not just improve the policyholder’s experience but will build greater trust in the system. This we feel will encourage more customers to opt for health insurance,” said Tapan Singhel, MD and CEO of Bajaj Allianz General Insurance.

“The ‘Cashless Everywhere’ initiative not only curtails out-of-pocket expenses during hospitalization but also eliminates the cumbersome reimbursement process. This would also reduce the chances of reimbursement rejection, which too pose a financial burden on the policyholders. This initiative will additionally benefit individuals residing in tier 2 and tier 3 regions, especially those in remote areas across the country. Such proactive measures not only foster a win-win scenario for customers and insurers but also contribute to the mitigation of fraudulent activities,” said Siddharth Singhal, Business Head – Health Insurance at Policybazaar.com.

“Cashless Everywhere” initiative stands as a groundbreaking measure within the health insurance industry by the regulatory body. It empowers policyholders to access treatment in any of the approximately 40,000 hospitals nationwide, providing a cashless facility, even outside the insurance network,” he added.

“This industry wide collaboration is not only beneficial for policyholders but also signifies a positive shift in the health insurance industry,” said Rudraraju Rajgopal, Executive Vice President & National Head – Accident & Health Claims, TATA AIG General Insurance, Company Limited.

Source- Economictimes

How to save big on your health insurance premium

Having higher medical coverage is the order of the day. That’s because medical costs are rising faster than average inflation. With medical treatment set to grow at 8.6 per cent this year, as per Global Medical Trends Survey of 2023, a hospital bill of Rs 5 lakh today will double in eight years’ time. Hence the need for higher medical coverage.

But a higher insurance policy is accompanied with affordability issues, more so because premiums increase with age. Since this can burn a hole in your pocket, we explore four options that can save a sizable chunk on your premiums.

Option 1: Basic medical policy

If health cover: Rs 15 lakh. The insurer will cover your medical bill up to Rs 15 lakh.

Option 2: Basic policy with deductible

If health cover: Rs 15 lakh; Deductible: Rs 25,000. You pay the initial Rs 25,000 before your insurance policy kicks in.

Option 3: Basic policy with super top-up

If base health cover: Rs 5 lakh; Super top-up: Rs 15 lakh. The super top-up will come into effect once you exhaust the basic plan.

Option 4: Basic policy with deductibles and super top-up

If base health cover: Rs 5 lakh; Deductible: Rs 25,000; Super top-up: Rs 15 lakh. You first pay the deductible from your pocket, then exhaust your basic policy and finally use the super top-up policy.

Now that we understand the four options, let’s consider which plans will give you significant health coverage at a lower premium. To provide a real-life example, we considered HDFC Ergo. Refer to the table ‘Four ways to get a health cover’.

Four ways to get a health cover

Clearly, the basic policy with deductibles and super top-ups (Option 4) can save you 37-39 per cent on your annual premiums compared to a vanilla health policy (Option 1). That said, each of these policies has its share of pros and cons.

Basic medical policy (Option 1)
Pros: Convenient and no complications.
Cons: Annual premiums are very high.

Basic policy with deductibles (Option 2)
Pros: 15-25 per cent lower premiums than option 1.
Cons: Need to pay deductible amount from your pocket. Not all insurers provide this option.

Basic policy with super top-up (Option 3)
Pros: 18-22 per cent lower premiums than option 1. Treated as two policies; helps you and your spouse save tax.
Cons: Super top-ups come with a few strings attached, such as limits on hospital room rent. Treated as two policies, so need to file your claim twice.

Basic policy + Deductible + Super top-up (Option 4)
Pros: Pay the most affordable premiums. Treated as two policies; helps you and your spouse save tax.
Cons: Pay the deductible amount from your pocket. Treated as two policies, so need to file your claim twice. Super top-up plans can insert sub-limits, such as a cap on hospital room rent.

What you can do

We think all four options are viable and usable. You can pick the one that suits you best.

• Choose a basic health policy if you prefer convenience over cost.

• Choose a basic plan with deductibles provided the limited options you get here suit you on other dimensions. For most people, a small deductible component won’t burn a big hole and yet reduce your annual premium by a considerable amount.
  Additionally, a lot of people can be financially vulnerable to one major episode of hospitalisation, and that is exactly what health insurance is there for. Even though there’s a small deductible, the utility of a large health policy remains intact.

• Choose a basic plan with a super top-up if you want to:
  a) enhance your health coverage and protect yourself from galloping medical inflation.
  b) get additional tax benefits. Since a basic plan and a super top-up plan are considered separate policies, you and your partner can individually claim tax benefits of up to Rs 50,000 (under Section 80C).The best practice is to buy a super top-up plan from the same insurer. However, check the super top-up’s fine print, as they may have certain sub-limits and clauses.

• Choose a basic plan with deductibles and a super top-up if you are looking to pay the most affordable annual premium and receive benefits mentioned in the above point, but of course, with certain conditions that come attached with a super top-up plan as explained above.

Source- Valueresearchonline

Tax Benefits Of Health Insurance Plans

With increasing pollution, sedentary lifestyles, and little to no time being spent on wellness, health insurance has become an important component of all our lives. An adequate health insurance cover can be extremely helpful in times of emergencies. Not just financial freedom and better peace of mind, but health insurance also offers great tax* saving benefits.

Here’s some useful information that can help you save some tax from your health insurance.

Section 80D of the Income Tax Act

The Indian government offers benefits to citizens with health insurance. Here’s how you and your family can avail them:

• For yourself, spouse and dependent children: Under Section 80D of the Income Tax Act, 1961, insured citizens under the age of 60 can avail a deduction of up to ₹ 25,000 from taxable income in a financial year on health insurance premiums paid for self, spouse and dependent children. If the age of insured is 60 years or more, the deduction limit increases to up to ₹ 50,000 in a financial year

• For parents: You can claim an additional tax* benefit of up to ₹ 25,000 for the health insurance premium paid for your parents. The limit increases to ₹ 50,000 if your parents are 60 years or older

• For Hindu Undivided Family (HUF): HUFs can avail tax* deduction for all members of the family. However, the overall limit for the entire family cannot exceed ₹ 25,000

How to claim benefits under Income Tax Act on health insurance premium paid?

Here are some important things to note while claiming benefits:

• You will need a copy of your insurance policy and a payment receipt of the premiums paid in the financial year

• Both these documents should specify your name

• In case you are availing benefits for a spouse, child, or parent, make sure the documents specify their names

Important notes

• For cash payments: As per government rules, you can only avail tax* deduction for health insurance premiums that are paid via cheque, demand draft, credit card, and internet banking under Section 80D. If you pay your insurance premiums in cash, you will not be able to avail the deduction. However, cash payments for preventive check-ups can be done to avail deduction under Sector 80D

• For group health insurance: You cannot claim tax* deduction for group health insurance policies. Only individual health insurance policies are covered under Section 80D

Conclusion
Being insured is extremely important for ensuring your wellbeing as well as that of your loved ones. Make sure that you get one as soon as you can for all the members of your family. It not only offers tax* saving, but will also provide a financial stability in case of health emergencies.

Source: Iciciprulife

What Is Coinsurance In Health Insurance?

How Does Coinsurance Work?
Coinsurance is the percentage of the treatment cost that you have to bear before the insurer starts covering the medical expenses. It is a form of cost-sharing between you and the insurance provider. The coinsurance is usually a fixed percentage of the treatment cost. However, the coinsurance terms only apply after you (the policyholder) have surpassed the deductible amount applicable under your plan. Let’s understand how coinsurance works with an example.

Understanding Coinsurance With an Example
Let us assume that the coinsurance term of your health insurance plan is in the 80/20 ratio and that your plan has an annual out-of-pocket deductible of ₹2,000. Now, say that you suddenly require an urgent surgery early in the year that will cost you ₹50,000. Since you may not have met your deductible amount this early in the policy period, you will first pay the ₹2,000 of the total bill.

After meeting the deductible of ₹2,000, you will then be responsible only for the coinsurance payment i.e., 20% of the remaining bill amount, which will be ₹9,600 (20% of ₹48,000). Your health insurance provider will cover the remaining 80% of the treatment cost. Later in the year, if you need to undergo another medical treatment, your coinsurance clause will come into effect immediately as you have already met your annual deductible.

How Does Coinsurance Benefit the Policyholder?
If you are considering buying a health insurance plan with coinsurance, the main benefit it offers you is lower premiums. If you opt for coinsurance in health insurance, where you pay a fixed percentage of your medical costs, your insurance premiums towards the policy will be lower. But it is recommended to consider the out-of-pocket expenses that you might have to bear every time you raise an insurance claim while opting for a plan with coinsurance.

How to Calculate Coinsurance Payments?
To calculate the coinsurance payment that you must bear, you need to understand the coinsurance rate applicable under your health plan. If the coinsurance is 20% of the medical costs, then you can first convert the percentage into a decimal. Hence, coinsurance of 20% would become 0.20 and coinsurance of 15% would become 0.15. Then, you can estimate the coinsurance payment in the following way:

Coinsurance Rate x (Total Cost of Bill – Deductible) = Amount to be Paid

Let’s take the example discussed above, with a coinsurance of 20%, a deductible of ₹2,000 and a total medical cost of ₹50,000.

0.20 x (₹50,000 – ₹2,000) = ₹9,600

Thus, the amount you are required to pay after covering the deductible is ₹9,600. However, you must remember that you need not consider the health insurance deductible component after you have cleared it during the policy term.

Wrapping Up
Even though opting for coinsurance offers you lower health insurance premiums, your out-of-pocket expenses during medical treatments will go up with such a cost-sharing clause. This can lead to an unnecessary financial burden during medical emergencies. Hence, you must compare health insurance plans available in the market before buying a policy, read all the terms of the health insurance plan you are opting for, and make an informed decision.

Source: Bajajfinserv

All you need to know about restoration benefit in health insurance

The restoration benefit in health insurance is a feature that reinstates the total sum insured in case it gets exhausted any time within the policy period.

After enduring a long and eventful period of COVID-19, it’s natural to ponder over the adequacy of your health insurance cover. Whether the plan can cover prolonged hospitalisation or will it fall short if more family members need it? Many policyholders second-guess their choice of plan, given the current times. Bring in the soaring medical inflation into the picture and the possibility of exhausting your sum insured in a single hospitalisation doesn’t seem so far-fetched after all. This is where the restoration benefit in health insurance comes to your rescue. It’s the simplest way to add an extra layer of protection for yourself and your loved ones against an expected medical crisis – or perhaps more.

The restoration benefit in health insurance is a feature that reinstates the total sum insured in case it gets exhausted any time within the policy period. This feature has found many takers amongst the people who opt for family floater plans. This especially works for these plans because the sum insured is shared by the whole family, and the benefit stands to cover more than one family member’s hospitalisation expenses.

The restoration benefit option is an in-built feature in almost every other extensive health insurance plan. Here’s all you need to know about it and how to make the best of it.

How Restoration Benefit Works
Simply put, restoration benefit restores the original sum insured amount if the policyholder uses it up any time during the policy period. For instance, you have a family floater plan of Rs 5 lakh, and have to undergo a sudden surgery that exhausts Rs 4 lakh. Now, if any of the other family members need hospitalisation that costs another Rs 2 lakh, the balance of Rs 1 lakh will have to be paid out of your pocket. However, if you have the restoration benefit feature in your policy, the original amount of Rs 5 lakh would be replenished as soon as the sum insured is exhausted in full.

Types of Restoration Benefits
There are two kinds of restoration benefits –

# Complete exhaustion – Here, the restoration benefits come into the picture only when the whole sum insured gets exhausted. If the entire sum is not exhausted, the benefit won’t get triggered and the policyholder would have to pay the balance amount out of pocket. Suppose, you have a cover of Rs 5 lakh and your heart surgery uses up Rs 4 lakh. Now, if you need Rs 2 lakh additionally for an unrelated claim in the same year, the restoration benefit won’t get triggered because your original sum insured is not completely exhausted.

# Partial exhaustion – Under this, the benefits can be availed even if some amount of sum insured gets used up. Some insurers offer to cover a second claim amount even if there’s some amount left from your sum insured. Take the above case here, and the restoration benefit will get triggered in case of partial exhaustion. So, your second claim will be covered as well even if you have Rs 1 lakh left out of your original sum insured.

Check with your insurer on the terms and conditions of both these types and opt for the one that best fits your needs. Also, your family history comes as an important deciding factor before choosing the restoration benefit.

What To Check Before Opting For It
Here’s your checklist before opting for restoration benefit in your health plan:

# The restoration benefit feature makes the premium costlier. Don’t forget to ask how this is going to affect your premium.

# The most important rule to remember is that restoration benefit gets triggered only for unrelated medical claims. Suppose you exhaust your sum insured over a heart surgery, then usually the restoration benefit will not cover a second heart-related claim in the same year. Understand from your insurer the type of claim they will cover and also the quantum of restoration benefit that will be covered. For instance, Aditya Birla Capital offers a restoration cover of 150% of the sum insured for a non-related illness for a cover of Rs 5 lakh. However, Max Bupa Health Insurance offers unlimited restoration of the sum insured for related as well as non-related illness for the same cover of Rs 5 lakh.

# Check with your insurer on the relevant conditions that apply for the same or different illnesses for different family members.

# The restoration sum insured usually cannot be carried forward to the next year even if you do not use it till its validity.

# Check if the benefit will trigger if the sum insured gets exhausted in a single claim or if it works in the case of multiple claims as well.

# Lastly, don’t just depend on restoration benefit for your protection. Rather, always opt for a higher sum insured to ensure your plan can take care of medical emergencies.

Source: Financialexpress

What Is Global Health Insurance Cover?

If you enjoy travelling or have a job that requires you to make frequent trips to different countries, you probably are well-versed with various cultures, cuisines and may even know a couple of foreign languages. And there is very little that can actually hold back someone who loves travelling. Take the pandemic, for example; no sooner were the vaccines introduced than the foreign borders started welcoming foreign visitors – with stringent safety COVID-19 protocols in place, of course!

But despite all of the precautions and planning, a trip cannot always go the way intended. This is why you will always need a health insurance plan that will offer you adequate coverage when you are travelling to another country. You may already be familiar enough with medical insurance that takes care of your medical emergencies or hospitalisation bills within India; however, have you thought about how it can be possible to tackle the expenses of getting medical treatment abroad?

What is the Global/Worldwide Cover?

A global/worldwide cover in your health insurance plan offers coverage for medical treatment that you choose to get abroad. Hence, if you are diagnosed with a disease, ailment or condition in India but opt for medical treatment and healthcare services in another country, these costs will be covered by the global cover. The global health insurance coverage ensures that you can avail of quality healthcare facilities in another country and do not have to foot expensive bills that you may incur as a result of this.

Features of a Global Health Insurance Cover

Choosing the best international health insurance in India can be a tough choice, considering that the cost of getting medical treatment abroad needs adequate health insurance coverage. There can be several problems arising from the lack of sufficient global health insurance coverage, which can either lead you to spend a lot of money from your own pocket or settle for mediocre healthcare services. Since both the situations are equally unappealing, here’s a look at what a typical health insurance plan with a worldwide cover should offer:

• •  Adequate coverage – The purpose of having a global health insurance cover is to ensure that you do not have to compromise on getting access to good or even private healthcare facilities or hospitalisation when abroad. Hence, consider an affordable health insurance plan that offers sufficient coverage.

• •  Pre-existing diseases cover – If you have previously suffered from chronic illnesses, diabetes or a heart condition, ensure that your global health insurance coverage can secure you against the high costs of emergency treatment in a foreign country if the need arises.

• • Medical evacuation coverage – The cost of transportation by ambulance or a rescue helicopter, in case of a severe accident, can be quite expensive when you are in another country due to the currency exchange rates. Therefore, your health plan with a global cover should be able to take care of these costs.

• • Repatriation or Evacuation – Travelling to and from a foreign country to India for a series of medical procedures can be as expensive as the medical treatment itself. However, if your global health cover secures these costs, then the necessary travel between the two countries can be covered under the plan

• • Emergency room charges – A global health cover should be comprehensive enough to cover a range of medical situations, subject to certain exclusions. However, if there is a sudden emergency while you’re travelling abroad, the cost of medical emergency care should be covered in your policy.

• • OPD charges – When abroad on a short holiday or trip, you may suffer an accidental but minor injury at some point. In this case, hospitalisation may not be necessary. But even the smallest procedure or the visiting charges in foreign hospitals can be costly. Therefore, your policy should be able to cover that.

• • Diagnostics – Running diagnostic tests for a second medical opinion or other medical purposes can get very expensive. If you are being treated in a country that offers advanced and hi-tech medical equipment, you should be aware that the costs of these tests can be unexpectedly high. Therefore, check if your global health insurance coverage can cover the costs of these tests.

• • Other medical requirements – The global cover you choose for your health insurance plan should have some provisions for maternity benefit or dental benefitcoverage needs or even access to mental healthcare services. When choosing a worldwide cover with your health insurance plan, be sure to look into these details and explore the coverage in depth.

How to Choose Global Health Insurance in India?

When choosing the best medical insurance policy for yourself, always ensure that your health insurance plan has a provision for covering overseas treatment. Or you can also avail of the Tata AIG Worldwide Cover on your health insurance plan if you want to be able to cover the cost of medical treatment in a foreign country. Since an international health insurance plan can get quite expensive, the addition of this simple cover can ensure that you can avail yourself of medical treatments both inside and outside of India.

With this cover, you need not worry about the rising expenses of medical care and hospitalisation if you are diagnosed with an ailment or condition in India but choose to receive medical care abroad.

However, these few points you will need to keep in mind when choosing an affordable health insurance plan that offers a global cover.

• • Ensure that your global health insurance cover offers cashless benefits where your insurance company can settle the bills with the hospital. The Tata AIG Global Cover offers reimbursement for medical facilities availed; however, the cashless benefit may be considered in some cases.

• • You can also get health insurance tax benefits with your global health insurance plan. Under Section 80D, you can claim a deduction of up to ₹25,000 if you are below the age of 60 years.

• • Most of the major expenses in global healthcare come from inpatient and daycare hospitalisation. Our Global Cover ensures that you are covered for these huge expenses if you have to be hospitalised during your treatment.

• • You can avail of the cumulative bonus on your health insurance global cover if you do not file any claims. Hence, when there is a need for you to utilise the worldwide cover, the basic sum insured of the global cover, along with the cumulative bonus of up to a maximum of 100% of the coverage, can be used.

• • Look out for a hassle-free claim settlement process from your insurance provider. Even though you will have received treatment abroad, back home, we will ensure that our quick and convenient online claim settlement process will help you out.

With this basic but essential checklist, you should be able to find a suitable health insurance plan that enables you to add a global cover.

Conclusion
International medical insurance can be very expensive, but if you compare health insurance plans, you will be able to find the right amount of health coverage at affordable rates. Moreover, the Worldwide Cover add-on in your health insurance policy ensures that while you can avail of healthcare facilities inside India, you can also opt for medical care in another country if needed

Source: Tata AIG

Is Health Insurance Premium a waste of Money?

A lot of people think that paying health insurance premiums is a waste of money.

After all, why pay the premiums for years and years, and what if nothing happens? After all, our grandparents never had any health insurance and they are in perfect health. Why pay for something which is an imaginary risk? These health insurance companies are here to just make money, fool customers with their fancy presentations and brochures, and reject claims finally.

Why not just save that money or enjoy life!.. Some people also give a nice example of how they can save up the premiums each year and if after 10 yrs, there is some hospitalization, they can use the money to pay the bills.

This is exactly how millions of investors feel and that’s one reason why insurance penetration is so low in our country. I am sure you must have met someone in your office or in your family who just reject the idea of taking the health insurance, because “Company ka cover to hai na” types of remarks

I see two big reasons why many people think this way!

Reason #1 – Transactional Benefit Mentality

A lot of people have a transactional benefit mentality, where they want to get some tangible benefit the moment they pay.

• Like you pay for a movie, and you watch it.
• You pay for apples, and you get it.
• You buy a TV on Amazon, and it gets delivered!

What do you get when you pay your health insurance premium? What do you get?

A PROMISE!!

That’s all, a promise that your medical bills will be taken care of in the future, only if it arises?

It’s very hard for these people to see benefits in terms of probabilities and future possibilities. It’s all about a short-term mindset and no ability to visualize the future.

This is even true for many investors who buy health insurance premiums, but eventually, they let expire the policy because they feel frustrated looking at their premiums go waste!

Reason #2 – Fake confidence of “Nothing will happen to me”

I don’t know how some people have this super confidence in themselves that “nothing will happen to me”

People don’t say it, but many people truly believe that there are fewer chances of anything bad happening to THEM.. It all happens to others.

I have lost one of my close friends and one more known person to COVID in the last 12 months, both below 40 yrs!. I was also admitted to the hospital in Nov 2020 as I was having cough and breathing issues. Both the people who died in Covid got admitted the same way with minor issues at first, and then it got worse and finally, they died.

I survived.

Remember that a person who dies in an accident or gets cancer has the same “Nothing will happen to me” kind of confidence 5 min before the event happens. We are all like that.

I feel it’s nothing but a lack of maturity and a bit idiotic to think that nothing will happen to me or my family because “we are careful”.

If you are careful, it’s just that the chances of something bad happening to you reduces a bit. That’s all, it does not get eliminated. Don’t live in the imaginary world.

Premiums are wasted if nothing happens?

It’s foolish to think that premiums get wasted if nothing happens to you.

• When you wear a mask, is it a waste if you didn’t catch COVID?

• Was the helmet a waste if you didn’t meet the accident?

What about the protection it provided you and you had that peace of mind?

In fact, the best thing is that your health insurance goes WASTE!.. I have tweeted the same some time back

3 levels of risks

In any area of life, you have various levels of risk.

You either accept the risk, reduce the risk or transfer the risk!

Health insurance is all about transferring the risk of very big hospital bills to insurers by choosing to pay a premium each year. If someone does not want to pay the premium, it means that they are accepting the risk that someday they may have to shell out a big sum of money for medical reasons.

And sometimes it can run into such a big amount that it can wipe out your years of effort. Sometimes you may get a disease that may require multiple or regular hospitalizations and it can really be crippling to your financial life.

So it’s up to you to decide if you want to accept these big risks or transfer them to the insurer (The cost part)

Is company cover enough?

I have already said this multiple times.

A company cover many times is not a full replacement for full-fledged health insurance which you buy yourself. At best you shall see the employer cover as a complimentary benefit because it can go away anytime. You also don’t know if it’s sufficient for you or not? And the worst, you cant depend on it after retirement, when you will need it the most!

Source: Jagoinvestor

Benefits of Porting Health Insurance Policy

Recently there was a boon for customers of telecom industry, when the new policy permitted the mobile number portability from one service provider to another. It was no less than a revolution that had a double sided benefit. One, a customer no more needed to change their cell number while quitting their current service provider.

Two, the service provider became more stringent towards quality services for the customers. Predominantly, the bonuses were all for the customers. That’s what the facility of portability comes with. If you are aware, the good news is that you have a similar luxury with your health insurance too. That means you can transfer your policy to another insurer keeping about all the benefits of your policy intact.

Some key benefits of health insurance portability are:

• Mostly, all the clauses for pre-existing diseases will be considered as is with the new insurer – including the time spent before all the diseases are covered

• The new insurer may waive off the minimum initial waiting period until no cover is provided

• By and large, there will be no change in other bonuses and the minimum sum insured, when you switch to a new insurer. In addition, you can choose to hike up your sum assured

• The new insurer may provide you with additional benefits for switching

• Introduction to new products and enhanced coverage that may be better than the existing one

• While the premium can be high, there is a possibility it can be low too. So it’s a plus

However, there are a few conditions in transferring your health insurance policy from your current insurer to another.

• You should be regular with paying your premiums – failing which your portability may be rejected

• The new insurer may charge you a higher premium than your current insurer

• The portability request must be placed at least 45 days prior to the policy renewal date

• The policy will be transferred only at the time of policy renewal

An exception you must know of

During the insurance period, the customer gains credit for the waiting period of pre-existing diseases. It has been mandated by Regulatory and Development Authority (IRDA) that the new insurer must consider the credit gain and the waiting period for the policy portability – only if the policy has been in continuation with timely premium payments and no defaults.

Minor limitations

If you are covered under a high risk category, regardless of your policy duration and regular premium payments, the new insurer has all the authority to charge a higher premium as part of their underwriting rules. Also if you are eligible for a no-claim bonus from your current insurer, the insurer may not consider paying you for that. In addition, the new insurer will have its own terms and conditions which may exclude expected benefits. So don’t forget to do a detailed research before you switch.

Source: Policybazaar