Buying health insurance is most likely going to be one of the most important financial decisions you will ever make. The reason it is an important decision is because simply any coverage won’t do. You need to do proper research to find the policy that suits your needs; one that caters to your specific health conditions, if any. This careful selection of coverage will ensure that you enjoy maximum protection during an illness and subsequent hospitalisation.
Now, it is equally important to renew your health insurance on time before coverage expires. If you miss out on doing so, you might lose out on the benefits of your policy. In this article, we have listed 4 reasons why you must always renew your health insurance before it expires.
- Risk of heavy bills in case of an illness
Perhaps the biggest reason why you should not let your health insurance lapse is because illness can happen at any time and leave you facing heavy bills. A single hospitalisation can wipe your savings clean. Therefore, make sure to set an annual reminder so that you do not miss out on your policy renewal date. Or, you may even ask your insurance provider to send you SMS or email alerts.
- Lapse of no-claim bonus
For every claim-free year, you receive a benefit known as the ‘no-claim bonus’ or NCB on your health insurance. This bonus might usually be given as an increase on your sum insured at no added cost. Thus, you enjoy added coverage at the same premium – a good benefit indeed considering how healthcare can be so costly. Now, if you let your policy lapse, you could lose out on this benefit. The loss would probably be a bit more if you have not made claims for several years and thus, accumulated a high NCB.
- New coverage means a new waiting period
Now, if your health insurance lapses and you buy a new policy, you would once again have to go through all the mandatory waiting periods that accompany coverage. This usually means that you will have a general waiting at the start of your policy and probably another waiting period of around 2 to 4 years before pre-existing diseases will get covered under your new policy.
- You could end up with a higher premium
Finally, if you buy a new policy, you will probably be reviewed as a fresh customer. Any benefits that you enjoyed till date might not hold, even if you choose to go with the same insurer. This might ultimately mean that you could end up with a higher premium on your health insurance. You may even be asked to undergo medical tests before getting covered again.
Looking at these reasons, it is advisable to renew your health insurance on time to always stay protected. Make sure that your loved ones too have adequate coverage. We hope that this article has helped you. Take care.