Pros and Cons of Health Insurance Portability
The common reasons that force most people to switch health insurance providers, let’s discuss the pros and cons of health insurance portability.
- 1.There is a customization option that comes with portability through which you can easily modify the policy as per your requirements and lifestyle.
- 2.The existing amount will be clubbed with no claim bonus to calculate a new sum insured.
- 3.All the benefits of your existing plan will remain in force, even after you opt for portability.
- 4.Because of the high competition, insurance companies provide existing benefits at lower premiums.
- 1.You can opt for portability only when the renewal date is approaching.
- 2.You can choose only similar kinds of products.
- 3.Usually, additional benefits can result in higher premiums.
- 4.If you want to move from group plans to individual plans, then you might have to lose some advantages that you enjoy with your existing plans.
Health Insurance Portability Rules
- Permitted Policy Types
An insured can port only similar policies. For example, if a policyholder is entitled to a reimbursement policy, then he can only port to another reimbursement policy or from one top-up plan to another. However, a family or an individual health plan can also be ported into a similar policy.
- Permitted Company Type
A policyholder can port his/her insurance plan from any general or specialized insurance company to the other.
- Permitted Renewal
Health Insurance Portability is allowed only at the time of renewal. Also, it is important to renew your health plan on time without any breaks to take advantage of the same.
- Permitted Intimation
Those who wish to port their health insurance first need to inform the existing insurance company in writing, which should be provided 45 days before the renewal date of the current insurance policy.
- Sum Insured
Policyholders are allowed to ask for an increase in the minimum sum insured at the time of portability. However, its approval depends upon the insurance company.
Within three days of the application, the company will inform you regarding your portability request.
- Premiums And Bonuses
As per the insurer’s specific underwriting norms, they are free to levy premiums. Therefore, the premiums may vary. However, those who come under the high-risk category may have to pay a higher premium on porting.
- Grace Period
In case the application of porting is under-process, then the applicants are eligible for a grace period of 30 days. During this time, the insured has to pay the premium on a pro-rata basis to avail of this feature. As per the IRDA guidelines, the insured cannot be forced to pay the premium for the whole year.
- Porting Charges
There are no charges for Health insurance portability.