Advantages & Disadvantages of Health Insurance Portability

What is Health Insurance Portability?

Health insurance portability is a feature that allows you to transfer your health insurance plan from one insurer to another without losing certain benefits, such as the no-claim bonus and waiting periods for pre-existing conditions.

The insurance regulatory and development authority of India offers mediclaim portability to every policyholder who is looking for:

1. A higher sum insured provides extended coverage.

2. A new plan that meets the evolving healthcare needs.

3. Proximity of network hospitals.

4. A simple and hassle-free claim settlement experience.

What are the Advantages and Disadvantages of Health Insurance Portability?

Knowing the rules of health insurance portability is only one aspect of the process. Before you make your final decision, it is important to first understand the health insurance portability benefits and drawbacks.

Advantages of Health Insurance Portability

Here are some advantages and benefits of porting health insurance policy:

1. Extended Coverage for Changing Healthcare Needs

Your healthcare needs keep evolving with every year, and as you grow older, you might need extended coverage. In such a case, without being stuck to the plan you purchased years ago, you can easily port it to a new plan with a different insurance company.

2. Continued Benefits of Your Existing Policy

One of the biggest fears with health insurance portability is losing the benefits of the existing policy. However, this is not the truth. When you choose to port your health care plan to a new one, certain accumulated benefits under your existing plan also get ported. These benefits can include no claim bonus, waiting period for different health conditions, etc.

3. Access to Better and Reliable Services

If you feel that the current insurance provider is failing to offer you reliable services like a seamless claim settlement, modern features like fitness and wellness benefits, etc., you can port to a different insurer and enjoy such benefits and a lot more.

4. A Chance to Manage the Premium Better

Health insurance portability allows you to change to a new plan and get a chance to lower the premium. If you research well enough, you might get extended coverage at a lower premium than your current plan.

Pro Tip: Trust Jio Insurance Broking to explore and compare health insurance policies before porting.

Disadvantages of Health Insurance Portability

Here are some disadvantages of health insurance portability:

1. Portability Allowed Only On Renewal

Health insurance portability is allowed only at the time of the policy renewal date. If you want to switch your policy in the middle of the policy year, it is not allowed.

2. Might Lose Some Benefits

Typically, health insurance companies let you port certain benefits of your current policy; this might not apply to all benefits. For instance, you might end up losing loyalty benefits that you have accumulated with your present insurer.

3. Underwriting Risks

When you decide to port your health plan to a new insurance company, the insurer performs the underwriting process. This process involves a review of your claim and medical history. This can impact the policy coverage and premium significantly.

4. Chances of Higher Premium for New Coverage

Porting a health plan has the risk of premium hikes. This can be because of different reasons, like:

• The new insurance plan offers coverage as an add-on to the base coverage of your current plan.

• Your medical stance has changed either due to age, new medical conditions, etc.

Things to Keep in Mind While Porting Your Health Plan

If you have decided to port your health plan, there are a few things you must bear in mind to avoid any hassle or confusion in the future:

1. Understand the Coverage and Exclusion

Make sure to check the coverage of the new policy and be mindful of the exclusions as well. This is crucial to ensure that all your medical needs are covered under the new plan.

2. Know Timeline to Raise Portability Request

Remember that you can raise a health insurance portability request not more than 45 days before the renewal date of your existing policy. If you fail to raise a request within these 45 days, you might have to wait another year to port your health plan.

3. Check the Claim Settlement Process

Check the claim settlement process of the new insurance provider and be sure that you are comfortable with it. Additionally, you should check the annual claims settlement ratio report issued by the Insurance Regulatory and Development Authority of India.

What is the claim settlement ratio? The claim settlement ratio is the number of claims settled by the insurance company divided by the total number of claims raised.

To Sum Up

Health insurance portability is one of the most unique and efficient features of health insurance. It ensures that your medical needs are protected just the way you want. Rather than feeling stuck with your current health plan, you can port it to a new one. Be mindful of the cons.

If you are looking for a health insurance policy that offers adequate coverage at an affordable premium, you can head to Jio Insurance Broking. Here, you can find the best health insurance policies from reputable insurance companies.

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