Health Insurance: Everyone is porting their health policies, should you do the same?


Whenever you invest in a product or service, you ensure that it provides maximum benefits in the long run. Maximizing long-term benefits involves thinking beyond immediate gains; Meaning, a price has been chosen that will last and continue to give benefits in the future also. This approach applies not only to our general financial investments but also to health insurance.


In today's world when medical costs are rising, investing in health insurance is a necessity. Additionally, the COVID-19 outbreak has raised awareness of the importance of health insurance and the need for adequate protection, better features, and services. Due to this understanding, many people are also porting their policies.

Health insurance assures immediate financial support to the policyholder in a medical emergency. However, deficiencies in the policy's features, value, and the insurer's services often put the policyholder in a difficult situation. In such a situation, health insurance portability works as a protection. The Insurance Regulatory and Development Authority of India (IRDAI) introduced health insurance portability in 2011 for people who were not satisfied with the service or protection provided by their insurer.

With health insurance portability you can easily shift the policy from one insurer to another without losing out on the existing benefits of the policy. With so many health insurance options available in the market, choosing the best policy can be a daunting task.

You should port to a new insurer only if the new policy offers attractive benefits and can meet the health needs that the existing policy cannot meet. Adding the bonus of the existing policy to the sum assured of the new policy can increase the value of the new policy. This article explores in depth the most important aspects of health insurance porting.

How to port health insurance?
When porting health insurance, you should ensure that your plan has an indemnity cover, whereby one party compensates the other for the expenses incurred. Additionally, you should inform the existing insurance company about policy porting at least 45 days before the expiry of the existing policy. Most insurance policies allow policyholders to port their health insurance policy at the time of renewal.

If the required waiting period of your existing health insurance policy has been completed, you can port the policy. Some insurance providers allow policyholders to port a health insurance policy if they have not made any claims during a particular period. To port the policy, similar coverage must be offered by your chosen insurance provider.

Steps to port an insurance policy
Fill out the IRDA Portability Form, this can be done before the renewal of your policy.
Contact the new insurer you wish to join. You will then share the different types of health plans.
Select a plan and submit the required documents. They will then contact your previous insurer for medical records.
Your new insurer must accept the proposal within 15 days after you submit all the required documents including the insurance portability form.
Once the offer is accepted, you will have to pay the premium for the new policy.


Should you port your health insurance?
There are many advantages and disadvantages of porting health insurance. On a positive note, a major benefit of porting health insurance is the ability to upgrade your plan to add more protection and better features at competitive prices. This option allows customization and ensures that your health insurance plan suits your needs. Additionally, all the benefits of your existing plan will remain intact during the porting process.
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