Seven Factors to Consider while porting Health Insurance Policy

Let us say you have been paying higher premiums against your existing health policy. After consideration, you have decided to port to enjoy lower premiums.

Some insurance companies hesitate to approve portability applications for senior citizens, the sole reason being that with increasing age chances of developing health conditions rises.

Health insurance portability lets you port or transfer credits you have accumulated for time-bound exclusions and pre-existing conditions seamlessly.

You can opt for this facility when you want to switch from one plan to another under the same insurer or move to another insurance provider. All you need to do is apply to the insurance provider of your choice at least 45 days prior to the renewal date of your existing policy.

However, there are certain conditions attached to this facility. Here are seven factors that you may consider while opting to port your health insurance policy.

Waiting period

Health insurance policies have waiting periods which usually consist of three timelines—30 days for fresh policies, up to two years for specified diseases, and up to four years for pre-existing diseases. If you are planning to port your policy to another insurer, make sure that you take note of the new policy’s waiting period. Also, if you are looking for a higher cover, you may need to serve the complete waiting period for pre-existing diseases.

Coverage offered by new insurer

Let us say you have been paying higher premiums against your existing health policy. After consideration, you have decided to port to enjoy lower premiums. However, some insurance companies can resort to reducing the coverage, albeit offering lower premiums compared to your existing policy. So, check the insurance cover before switching to a new insurance service provider.

Portability application timeline

You need to apply 45 days before your policy expires and not before 60 days of the expiry date. Keep this timeline in mind to avoid your application getting rejected. Also, the insurance regulator has to provide insurance claim and other details within 7-15 days of submission of your portability form.

Your age

Some insurance companies hesitate to approve portability applications for senior citizens, the sole reason being that with increasing age chances of developing health conditions rises. Also, certain insurers levy high loading costs if they see the applicant is above 55 years.

What you can port

You can port the waiting periods or time-bound exclusions along with no claim bonus on the existing policy with this facility.

Increasing sum assured

You can always seek an increase in the sum assured when applying for portability. However, this is solely at the discretion of the underwriter. If you seek a hike of 100%, there are chances of your application getting rejected. Also, if you seek to port a single member out of a floater cover with a significant increase in the sum assured, you may directly fall under the scrutiny of the new service provider. This usually happens when you are looking to enhance your cover with an adverse health condition.

Faulty application

Make sure that you have filled in the form with the required details and have all the documents pertaining to your existing policy in place. Also, do not forget the application timeline. You have the highest chances of approval for porting your existing insurance if you are below 50 years and have a clean claim record. It will help you maximize insurance benefits while paying lower premiums. Make sure to compare all your options thoroughly, and do not forget to go through the fine print of the new insurance company before signing up.