In this guide, we’ll explain every detail of transferring your health insurance policy, why you need to transfer it, the process for doing so, and some key things to consider when choosing health coverage for you and your family during the process.
Public health has traditionally been well served by the Medicare system, but health insurance has been a crucial element of personal finance to address financial problems during a hospitalization. However, depending on one’s changing needs over a period of time, the type of health insurance plan one chooses may not meet their needs. Now, this is where health insurance portability can come in handy for an individual. Transferring simply means moving your health insurance policy from one insurance company to another, and by doing so, you may retain the benefits earned from your previous insurer, which will include waiting periods, no-claim bonuses, and coverage limits.
In this guide, we’ll explain every detail of transferring your health insurance policy, why you need to transfer it, the process for doing so, and some key things to consider when choosing health coverage for you and your family during the process.
This can also have the following benefits, especially if you are dissatisfied with your current health insurance company in terms of services offered, premiums charged, or plans available. Here are some key reasons why portability may be a good idea:
1. Better coverage options
As you get older, you may find that your health care needs need more attention that your current plan cannot provide; This is where a completely different policy could come in handy. Policy portability allows you to shop for a new health insurance policy that fits your current needs. For example, if you have added members to your family or if you previously did not need maternity or critical illness cover, it could be helpful to move to a plan where these additional add-ons have affordable premiums. You can choose from the various family health insurance plans available to meet your needs.
2. Improved customer service
Many people pay little attention to customer service when choosing their insurance company, but this can be a big help in the long run. Generally, the portability option allows the customer to switch to a provider with an improved and efficient customer service system, in case the existing company is not satisfactory in terms of complaint handling. Some of the modern insurers are directing their efforts towards the quick and efficient claims approval and handling process as this aspect makes the entire process easier.
3. Profitable premiums
Your current insurer may have increased premium rates or you may feel that the premium you are paying is not worth the coverage you receive. This could be reason enough to transfer and you can still keep your benefits while transferring to an insurer that offers affordable premiums for better coverage.
4. Retain No Claim Bonus (NCB)
A no claims bonus (NCB) is a discount that arises from the fact that no claims have been made during the policy year and this bonus usually continues to be earned. When you transfer your health insurance, the NCB can be retained and therefore when you want to reduce your premium rates or upgrade your cover without incurring any additional costs, you can do so. This helps ensure that you are not stripped of any bonuses earned for being a claims-free driver.
5. Pre-existing condition benefits
Additionally, portability can sometimes be used to reduce the waiting period for pre-existing conditions, if the new insurance provider you choose has a shorter waiting period for your condition. You should know that when changing insurance companies, some of them may consult the history of the previous insurance company. If you completed a particular period with them regarding your pre-existing conditions, your new insurer may consider the same waiting period and start with the remaining days.
About Health Insurance Portability: Process
Switching health plans is easy, but it takes some planning when you want to transfer your health insurance. Below is a step-by-step guide to help you navigate the process:
Step 1: Evaluate your existing health insurance policy
Before porting, it is necessary to study your current health insurance policy in detail. Find out what type of coverage you have, for how much and what it provides. This is important as it will help you make a decision about what to expect from a new policy, such as; enhanced family health insurance or a lower policy rate.
Step 2: Differences between insurance and health plans at various insurance companies
The final decision is to take out your policy and find better deals that you can switch to. It also approves different types of health insurance plans offered by different insurance companies.
Step 3: Notify your existing insurer
You must notify your current insurer of your intention to transfer the policy at least 45 days before the renewal date of the particular policy. This is because this is enough time for the new insurer to receive your application and the old insurer to send your policy details to the new insurer. This notification must be made in writing, preferably in an email or letter.
Step 4: Request transfer to another company
Once you have selected your new insurer, request the transfer by submitting the necessary documents, including:
Proposal form
Details of existing policy (premium, cover, NCB, etc.)
Medical history (if necessary)
Any other document requested by the insurer
Your new insurer will evaluate the documents and provide you with a transfer request, which includes details of your coverage options, premiums and terms. If your current insurer has restrictions or exclusions, the new insurer will let you know.
Step 5: Undergo medical tests (if necessary)
The insurer may require you to undergo a medical examination depending on your age, medical history and company requirements. The new insurer then uses these results to determine if you have a risk that will result in a premium. The insurer can test all family members over a certain age for family health insurance plans.
Step 6: Get Transfer Request Approved
It takes a while (on average 15 days) once you make a transfer request to the new insurer for review. They will approve your application if everything is in order and your policy will be transferred. If they can’t answer anything right away, they will let you know if there is a problem or if they need anything else.
Step 7: Receive your new policy and confirm continued benefits
Once you have submitted your transfer application and are approved, you will get your new health insurance policy. Make sure the new policy contains everything you get in the old one, such as waiting period for pre-existing conditions and No Claim Bonus (NCB). You will maintain our continuity benefits and will be able to continue using the new health insurance plan without interruption.
Conclusion
One way to ensure you get the best health insurance coverage at the most competitive price is by transferring your health insurance policy. Portability of your health insurance gives you the opportunity to get a better premium, better coverage, and better customer service that fits your needs.
When transferring, be sure to take a close look at the umbrella policy you currently have, explore other plans, and choose an insurer with whom you and your family will have full coverage. It is especially useful for those growing their families, as family health insurance plans are available in a single policy that covers everyone.
By taking the right steps and choosing the right policy, you can ensure that your health insurance continues to offer the protection you need while saving you money in the long run.
Disclaimer: The above information is for illustrative purposes only. For more details, please consult the policy wording and prospectus before finalizing the sale.
(This article is part of the consumer connect initiative of IndiaDotCom Pvt Lt, a paid publishing programme. IDPL claims no editorial involvement and assumes no responsibility for errors or omissions in the content of the article.)
The article mentioned above is a Brand Desk article or whatever the client has confirmed. This article is a paid publication and has no journalistic/editorial involvement from IDPL.
