Is It Advisable to Port Your Health Insurance Policy?

A health insurance policy is a crucial financial safety net for medical emergencies. However, as you age, your healthcare needs may change, and you might require a different type of coverage for better financial security. If you switch to a new policy, you would typically need to endure a new waiting period and cover medical costs in an emergency.

This is where health insurance portability becomes useful. Portability allows you to change your insurance provider whenever you want without losing your existing benefits. Let’s learn whether it is advisable or not.

Is It Ideal to Port Health Insurance?

Porting health insurance is advisable when your current policy no longer meets your needs, such as when there is insufficient coverage or poor service. It allows you to switch insurers without losing existing benefits like waiting periods.

However, it depends on individual circumstances, such as new policy terms, premium changes, and continuity of coverage. You must evaluate both policies carefully before deciding whether you want to port your insurance policy or not.

Why Should You Consider Porting Your Health Insurance Policy?

Here are 9 reasons why you might want to think about porting your health insurance policy:

1. Find a Better Insurance Provider

If you are unhappy with your current insurance provider, be it for poor service or dissatisfaction with their offerings, porting your policy gives you the chance to choose a better insurer.

Look for an insurance provider known for excellent service and a smooth claim settlement process. If you have had issues with slow claim settlements before, check how efficiently new providers handle claims.

2. Get a More Competitive Premium

Even if you did not make any claims, you might have seen your premiums increase. With the option of portability, you do not have to accept this higher premium.

As competition among insurers grows, many offer discounts and better benefits. Health insurance portability could help you find a plan that offers more benefits at a lower cost.

3. Switch to an Insurer with a Larger Network of Hospitals

Having a wider network of hospitals means better access to cashless services during emergencies. If your current insurer does not have a broad network, porting can help you switch to one that does.

This means you will not need to worry about arranging funds for medical emergencies and can focus on your health instead.

4. Choose an Insurer With a Better Claim Settlement Ratio

When you port your policy, check the Claim Settlement Ratio of the new insurer. This ratio indicates how many claims an insurer settles compared to the total claims received.

A higher ratio means the insurer is reliable and customer-friendly, ensuring that your claims are processed smoothly.

5. Benefit from Continuity on Your Waiting Period

Health insurance policies often require waiting periods for specific illnesses or pre-existing conditions. One major advantage of porting is that you can keep your waiting period intact.

For instance, if you have completed 3 years of a 4-year waiting period with your current insurer, you only need to complete the remaining year with your new provider.

6. Carry Forward Your Accumulated Cumulative Bonus

Your Cumulative Bonus rewards you for maintaining good health. When you port your policy, you do not lose this bonus. It will be added to your new health insurance plan, allowing you to benefit from your healthy track record.

7. Customise Your New Policy

Porting allows you to tailor your new policy to better meet your needs. You can change the nominee, adjust the sum insured, or select a plan that focuses on specific health concerns. However, the ability to customise may vary depending on the new insurance provider.

8. Access Better Features

Different insurers offer various features in their plans. Some might include benefits like no room rent capping or road ambulance coverage, while others might offer air ambulance coverage or restoration benefits. Porting gives you the opportunity to choose a plan with features that best suit your requirements.

9. Find a More Transparent Service Provider

Many people are frustrated with hidden clauses and unclear terms from their current insurer. Porting your policy allows you to select a provider known for transparency and straightforward practices. Look for insurers with a digital approach for a more transparent and efficient service experience.

Key Things to Know Before Porting Your Health Insurance

The following are some important points you must remember before porting your health insurance:

● Pay Attention to Your Policy’s Expiry Date

Timing is crucial when porting your health insurance. You can only port your policy during the renewal period, so it is important to act on time.

Make sure to notify your current insurer at least 45 days before your policy renewal. Once your policy expires, the option to switch providers is no longer available.

● Be Transparent with Your New Insurer

Honesty is essential when dealing with your new health insurance provider. Be upfront about your claim history and medical records to prevent any delays or rejections in the porting process.

● Similar Plans May Offer Different Benefits

Even if you switch to a plan that looks similar to your current one, different insurers often offer varying features and perks. Be sure to carefully compare the benefits offered by the new provider before making your final decision.

What is the Procedure for Health Insurance Portability?

Here are the simple steps you need to follow to port your health insurance:

Step 1: Reach out to the new insurance company you want to switch to at least 45 days before your current policy is set to renew. You need to initiate the portability request in advance.

Step 2: Once your request is received, the new insurer will send you the proposal and portability forms. They will also provide information about the various health insurance plans they offer.

Step 3: Choose the health plan that fits your needs and fill out the proposal and portability forms. Submit these completed forms to the new insurance company.

Step 4: After receiving your forms, the new insurer will contact your current insurer to gather details like your claim history and medical records. They might also access this information from the IRDAI’s website.

Step 5: Your existing insurer will provide the necessary information through the IRDAI’s data-sharing portal within 7 working days. If there is any delay, the new insurer may hold off on making a decision about your portability request.

Step 6: The new insurer will review all the information and decide on your portability request within 15 days. If they make a decision within this timeframe, they are obligated to accept your portability application.

Health insurance portability offers you the flexibility to switch insurers without losing valuable benefits. Whether you seek better service, a lower premium, a broader network of hospitals, or enhanced features, porting your policy can meet your evolving needs. By following the above steps you can apply for portability, and secure a plan that suits your requirements.