What Mistakes to Avoid While Porting Health Insurance

The portability of health insurance means that a person who changes health insurance companies can keep the benefits he or she has earned, such as waiting period credits and accumulated bonuses. It can help you receive more coverage, better health care benefits, and better services. But the wrong moves in the portability process can have a negative impact on your policy coverage and claim settlement experience. Read on to understand the common health insurance portability mistakes and the important factors to consider before porting your policy.

Mistakes You Must Avoid During Health Insurance Portability

1. Filing a Delayed Portability Request

The biggest error policyholders make is waiting to make their portability request. Typically, insurance companies require that policyholders apply for portability when a policy is at least 30 days before its expiration date. Insurers may not accept last-minute applications.

2. Porting to a Health Insurance Plan with Limited Benefit

The goal of health insurance portability is to switch to a better health insurance policy and benefits. Many policyholders, however, pay attention to just the lower rates and not the key policy features. A plan that offers lower benefits with a narrow network of hospitals might not offer sufficient financial coverage in case of an emergency.

3. Not Utilising Your Accumulated Bonus

The health insurance portability advantage of transferring the no-claim bonus is a major one. Numerous policyholders don't know how to use this benefit effectively when transferring their policy. It is best to find a new sum insured that encompasses the base and the total amount of bonuses. This keeps you on waiting period benefits and maximises the coverage value.

4. Not revealing pre-existing diseases

All existing health conditions, including diabetes, high blood pressure, heart disease, and so on, need to be reported when switching health insurance plans. The party might lose the claim if the information provided is not accurate.

5. Cancelling the Previous Policy without Acknowledgement

The other common mistake is to cancel an existing policy without confirmation from the new one. Before granting the portability request, the new insurer may check your claims history and medical condition.

If you cancel your existing policy too early and the new application is declined, you could find that you have no health insurance at all. So, before you cancel your existing one, always wait for the policy approval and recognition.

Verify with the Points Below Before Porting a Health Insurance Policy

1. Age Limit and Claims History

Don't choose an insurance company that doesn't have the characteristics of lifelong renewal and secure coverage benefits. Some insurance companies might refuse to offer the portability options for senior citizens, or set up greater loading charges and co-payment policies with age and claims records.

2. Medical History

Medical history is a key factor when applying for portability. Recipients with serious pre-existing diseases and frequent hospitalisation records might be denied the application. Some candidates over 45 years of age might be required to undergo medical tests.

3. Waiting Period

Typical health insurance policies feature waiting times for certain diseases and pre-existing conditions. Portability allows you to continue your waiting period from the prior policy. However, there could be a waiting period if the sum insured is increased.

4. Sum Insured

If the amount insured is applied for with a significant amount of portability, you can expect to be scrutinized by the insurance company. One should select coverage depending on their health requirements, apart from factors like cashless hospitalisation and reimbursement benefits.

5. Premium Change

While lower premium plans might appear attractive, they might feature less coverage and limited benefits. Before importing your policy, check the policy coverage, exclusions, healthcare benefits, and premium.