Current times have a growing sense of uncertainty, especially when it comes to health. In such a situation, every person must have adequate health care. Since the outbreak of the COVID-19 pandemic, awareness on health insurance has increased. As a result, a large number of people invested in different types of healthcare plans. However, there are cases where their chosen policy or the insurance company frustrates the policyholders by not providing the required coverage or desired support when needed. Such situations may force policyholders to buy health insurance from an insurance company with a better track record.
Although the opportunity to purchase a new plan is always available, many are unaware that it is possible to port a health insurance plan from one company to another just like mobile number porting. But an important question is that should you consider porting your insurance policy instead of buying a new plan?
Why consider porting?
When it comes to porting, there are multiple reasons you can consider over buying a new plan. For example, when your current insurance company does not provide the support you need, the appropriate solution to your problems, adequate coverage for specific medical issues, or has a lack of transparency or disclosure regarding the coverage of the policy. You should also pay attention to the coverage you are receiving from your insurance provider and then compare the benefits that other insurers offer for the same price.
If your current plan only covers a single person and you want to include your spouse in your plan after marriage, job change or change of address, you should consider porting your policy to a new insurance provider. Make sure to read the policy documents carefully before porting to another plan. The reason for that is that it is possible that credit like time limits, exemptions, or pre-existing diseases may be transferred from your current plan. Moreover, you can port into an insurance provider that offers a health insurance app in India.
Important points to consider before porting
- Pre-existing diseases
Policyholders with pre-existing diseases (PEDs) should first check whether it is possible to port the new insurer and whether the insurer needs pre-medical screening. Most of the new policies have a waiting period of up to 4 years for the PED, during which time the subscriber will not be able to claim any coverage for the pre-existing illnesses. On the other hand, porting might include continuation benefits. For example, the new insurance provider might waive off your existing waiting period.
For example, if one of your policies is 4 years old, your PED-related waiting period for most of the current plan should have ended. When you port this policy to the new insurer, they might not resume your waiting period. Instead, it treats you as if you have already spent 4 years on the new health policy. However, many insurance companies are reluctant to accept porting with PED as the risk of hospitalization is high.
- Age when porting
Most insurance companies are reluctant to approve coverage for the elderly, given their sensitive health conditions and the risks involved. For senior citizens who cannot port their plan, it is recommended to consider purchasing an additional new plan. Needless to say, it is always better to port or buy health policy when you are young.
- Change in sum insured
There may be times when the new insurance company does not provide the exact amount of the guarantee as in the current policy. In such cases, the policyholder will have to select the nearest higher sum insured and the difference in the two amounts will be treated as a fresh application. This means that all terms and conditions like waiting period, sub-limits, etc. will apply to the additional amount.
A higher sum insured will be given to the policy if they fulfill the underwriting and medical criteria of the new insurance company. Depending on the new insurance company’s underwriting decision, the application may be accepted with equal or additional premium or may be rejected if the insurance risk appears to be too high.