Health insurance just saw a major change happening when Health Insurance
portability was introduced. Portability of health insurance allows a person to migrate to a different health insurance provider without losing on the benefits. But why is it considered such an important thing and why is it being seen as a major facility?
Why you may need portability. If you are dissatisfied with your insurance provider –
Reasons for dissatisfaction can be many; you had trouble in claims, you don’t get renewal notices you don’t get Policy
documents after renewal or you don’t get required assistance at the time of need. You would want to change the health insurance provider for better services
You are being transferred –
If you have to shift to an area where your current insurance provider does not have a network or the services are not within easy reach, you may want to change your insurance provider. You may want cover for illnesses that are excluded in your current policy –
Every insurance company has an Exclusions
list. You may want cover for illnesses that are not covered in your existing health insurance but other insurance companies may be covering them. Changing Jobs –
If you are changing your job and have only the employee offered health insurance, you were left with no health cover. Portability allows shifting to individual cover from a group health insurance and also keep the continuity benefits In this case the rules applicable will be of the individual policy without any extra benefits that you may have enjoyed in the group policy. Policy renewal age –
You may want to switch to another insurance company that offers higher renewal age or offers lifelong health insurance renewal. For better Coverage on other features –
you may want to change the health insurance provider to get better options of specific features like room rent capping, ambulance charges or daily cash availability etc.
While earlier if you had to change the health insurance provider the only option was to buy a new policy and go through all the window periods and waiting periods. Now, with portability a lot of the benefits, gained in existing health policy, are carried on to the new policy. The duration that you have been Insured
is taken into consideration by the Insurer
you are migrating to. Benefits of portability:
•Window period of the new insurance (30-180 days as it may be as per the policy) is waived off.
•For the pre existing diseases waiting period, the duration you have been insured is considered.
•In case of specific illnesses excluded for first few years, the duration you have been insured is considered.
•Insurance cover increased over the time with existing health insurance provider is accepted as the sum Assured
by the new insurer.
You may have reasons that you wish to change your medical insurance
provider and portability has allowed most of the important benefits to be transferred. Yet you need to take care of certain things as this time you may not get the free look period. Compare your existing policy with the others available in the market and weigh them before you take the decision.