Benjamin Franklin said, "Early to bed and early to rise makes a man healthy, wealthy and wise." These wise words have improved our lives in many ways. But we can all agree that adhering to such wisdom and routine has become a lot more difficult in this fast-paced time. Despite getting exercise and following a healthy diet, people fall sick sometimes. Even in the absence of illness, sometimes a minor accident can also land someone in the hospital. And with the rising healthcare expenses, having health insurance becomes more important than ever in such scenarios.
In our ever-changing lives, nothing is permanent. We grow up, meet new people, events in our lives change, and with that, our needs change, demands change. When change is the only constant, why should the health insurance policy be the same? Should it not undergo a review? It should!
Now, if you have any doubts in mind regarding why you must review your health insurance plans annually, we will clear them out. Please keep reading.
1. Changing lifestyle
Over the last few decades, our lives have gradually become tech-dependent. However, the changes are happening at a tremendous pace in recent times. A global pandemic has disrupted our lives, forcing us to adapt to a sedentary lifestyle. A year-old health insurance policy may not suffice to deal with the present necessities in such a scenario. Therefore, reviewing your health insurance before the time of renewal becomes crucial.
2. Pre-existing diseases
When buying a health insurance policy, you must have noticed that there are waiting periods for some diseases, such as diabetes, hypertension, etc. These are called pre-existing diseases (PEDs), and the waiting period for these generally lasts 2-4 years. Within this period, the incumbent or the policyholder doesn't get insurance cover for that disease.
When you review your health insurance plan, it helps you learn and understand the pre-existing waiting period better. If you have been diagnosed with any such disease, you can notify your insurer about the same.
3. Changing life events
As time passed by, some of us grew up, and some grew old. You can probably look back in time and realize how much things have changed in your life. Major life events like getting married, becoming a parent, changing jobs, and changing cities, etc., demand a lot more than there is. For example, after marriage, the number of family members may increase.
The case is quite similar to your health insurance policy; it was probably enough a year ago, but now it's not. Therefore, before the renewal time, you should review your health insurance plan. You can add new members, such as a spouse or child, into your policy at the time of renewal.
4. Ensure adequate cover
As science progressed, the Indian healthcare system witnessed a rise in the use of advanced machinery. Rigorous research in medical science has invented technologies that can diagnose diseases at an early stage. However, such advanced treatments don't come cheap. Review your health insurance policy to ensure that it provides adequate cover, should you ever need them. For instance, you can look at the family health insurance, which covers modern treatments.
Not only advanced treatment, but the overall healthcare service has also become a lot expensive these days. Consider reviewing your health insurance policy before you renew it. It is vital to learn if your health insurance covers most diseases, whether the waiting period is less, or if the premiums are justified.
5. Grab the additional sum insured
Suppose you haven't made a single claim during your insurance cover period. In that case, you are more likely to get an additional sum insured (ASI) upon renewal of your health insurance policy. Every reputed insurance company follows this practice to incentivize the insurance buyer. Every year, you must review your health insurance policy to rip the benefit of ASI, which can go as high as 100% - 150%.
Failing to review your health insurance policy, you will not only lose out on your ASI benefits but may also end up going for a medical check up again.
6. New add-ons and covers
Insurance companies are launching new products and services every year to outperform their competitors. It means you can get improved services, new riders, better cover, etc., by paying the same or a little higher premium. For e.g. ICICI Lombard Complete Health Insurance recently got upgraded with lots of new add-ons, including Air Ambulance, Worldwide Cover, etc. Only an annual review of your health insurance can get you the best deal.
Standing at this point in the article, we hope you have learnt the importance of reviewing your health insurance plans. Nonetheless, to help you further in the cause, here are some quick tips that you should keep in mind:
- Review the health insurance plan your employer provides you and ensure it offers adequate health coverage.
- Check the cost of critical medical care, e.g., treatment for cancer, heart diseases, fractures, childbirth, accidental cover, etc.
- Review the co-payment clauses.
- Check whether the insurance provider has a good claim settlement ratio for the last 5 years.
- Enquire about the network of cashless healthcare facilities, i.e., hospitals, diagnostic centres, etc.
- If you are going to live in another city, consider the cost of healthcare in the new city.