Given the rising medical costs today, a health insurance policy has almost become mandatory for all to buy. Health insurance, like your car insurance policy, needs to be renewed annually. Even though most insurance companies send you reminders about renewing your health policy; it is ultimately your responsibility to do so in time.
While renewing your policy, you can continue with the same insurance company or switch to another. Thus, it is important to consider and compare various health policies on offer and then select the best one. We list five important things that you must consider at the time of renewing your policy. Check it out:
- Assess your health and insurance requirement
One year is a long time for your health can go upwards or downwards depending on your age, lifestyle and how well you have been taking care of your health. It does not make sense to simply continue with your existing policy. Depending on all existing health conditions, you can adjust your health coverage accordingly.
- Type of Policy
Plenty of things can change in a year. You could get married or have a child or any other such situation. Thus, the renewal time is the best time to access if you would like to have a group policy or an individual one. For instance, if you are getting divorced, you might want to switch your group policy to an individual one. Thus, depending on your needs, you can decide on the type of policy you would like to switch to or retain for the following year.
- Review your insurance provider
Renewing your medical insurance annually does have its perks. You can not only review the terms and conditions of your existing policy but can also take a critical look at your insurance provider. You have the flexibility to switch to a different insurance company without losing the benefits of your existing policy like the no-claim bonus.
Even if you are happy with your insurance provider, it still pays to research all available health policies available in the market and compare them on various parameters and features. This way, you can select the health policy with maximum benefits and minimum premium amount. You are likely to be in an advantageous position by making an informed choice.
- Review the benefits and features
We already talked about comparing various features and benefits offered by the health policies offered by different vendors. It is important to compare various features and benefits before making the final choice. Few of these include:
- No claim bonus- This is the amount you receive from the insurance company for not claiming any insurance during the past year. Different insurance providers pay a different percentage. This amount helps in lowering your payable premium amount.
- Various available discounts and benefits – Not many know but there are various discounts that you can avail like gym discounts, discounts on weight loss programs, discounts on contact lenses and glasses, OPD benefits, covered annual physical examinations, etc. These are perks that you can take advantage of easily but often need to dig it out from the insurance provider.
- Deductible – This is the amount that you need to pay from your pocket for treatment before the insurance company pays for your medical bills. The higher is your deductible, the lower is the premium amount you need to pay.
- Co-pay or co-insurance- This is the amount that you need to bear after paying your deductible. It is an option that you may take or leave depending on your financial condition.
- Out-of-pocket-max– It is the maximum cumulative amount that you need to pay in case of any medical treatment. It includes the deductible, co-pay and all other expenses. It should be affordable to you.
- The Network of cashless treatment– One of the biggest advantages of present-day health policies is cashless treatment in their selected network of hospitals. It is imperative that you look into the network and find at least a couple of hospitals that are in your vicinity and you can comfortably avail treatment there.
- Add-on covers – This refers to extra coverage apart from the base coverage. It could mean extra cover for critical illness, maternity benefits, etc. You need to access your requirements and then make an educated decision.
- Premium – Finally, this is the amount that you need to pay each month, quarterly, half-yearly or annually. If you pay cumulatively, you are liable to get a discount. Thus, it must be looked into as well.
- Renewal on the time
Finally, you must renew your policy in time. If you do not renew your policy within the grace period, you would lose all the benefits and perks collected. In case you are porting your policy, you need to follow all regulations and ensure you are not losing on your benefits. Even a day’s delay might prove fatal.
Wrapping up
Buying health insurance has become the need of the hour. Making an educated renewal by keeping the above considerations in mind help you reap the maximum benefits out of it.