When should you consider porting your health insurance policy?

Naveen (30-years-old) works as a client service manager in an advertising agency in Ahmedabad. Naveen purchased a health insurance policy for himself 3 years ago from an eminent health insurance provider. However, Naveen got married one year before, and now, he wants to purchase some additional coverage like maternity coverage because he is planning for a family. But his current insurance provider is not offering him adequate maternity coverage. Moreover, he is not happy with the service of his present insurer. So, in this situation, what should Naveen do? Naveen can port his health insurance policy to another established insurer, where he may get added benefits and high-quality services.

So, let’s discuss what health insurance portability is and when you should port your health insurance policy.

What is Health Insurance Portability?

These days, health insurance policies are playing pivotal roles in the life of people. Health insurance portability is an option that allows the insured policyholder to change his/her current insurance company by choosing another (possibly better) insurance company.

If you are not satisfied with your insurer and looking for better coverage, prices, or services, portability could be the utmost option. Then, if you find another medical insurance company that embraces you with all these things, you can migrate your policy through portability. Nowadays, most medical insurance companies are offering easy portability options to their policyholders so that everyone can avail themselves of the benefits of health insurance policies.

When do you consider portability?

You can consider portability in the below-mentioned cases:-

• You are getting poor services from your current insurer
• Your current insurance provider is not offering additional cover
• You can get better options from another company
• The policy documents are not transparent

You are getting poor services from your current insurer

At the beginning of your simple health plan, your insurer may promise you to offer the best quality services throughout your life. But if you notice that you are receiving inferior services from your insurer over a while, you must discard your insurer. If you are not satisfied with its services, there is no reason to continue with that insurer. You may also be dissatisfied with the claim settlement process of your insurer. If you are facing this issue, then you should opt for portability and switch to another insurer.

Your current insurance provider is not offering additional cover

If your present health insurance company can’t offer adequate coverage against your simple health insurance plan because of underwriting limitations, then you should consider portability. Likewise, suppose your existing health insurer can’t provide you sufficient cover against any particular health issue that is a cause of concern. In that case, portability could be the best option for you.

If you want to enhance your coverage for multifarious reasons, including the number of dependents, a new ailment, etc., and you are getting such an enhanced cover with another insurer, you should consider switching.

You can get better options from another company

Suppose you are getting a better deal from another insurer regarding renewal, policy premium, room rent limits, co-payment clauses, etc. In that case, switching could be the best option for you. In this steep competitive era, many medical insurance companies are offering similar services at cheaper premiums to get the customers’ attention.

The policy documents are not transparent

Sometimes, many insurance companies often include hidden clauses that you may not be aware of while buying the policy. But whenever you initiate a claim request, these clauses can create a wreck during health emergencies. Thus, you should migrate to another insurance provider that maintains transparency in their policy terms and conditions.

Whenever you are planning for portability, you must remember that you can port only to a like policy. So, for example, you can easily migrate from an individual plan to a family floater policy or from a general insurer to a health insurer. But you can’t switch from an indemnity plan to a critical illness plan.

Advantages of porting your health insurance policy

Let’s take a look at some of the benefits of porting.

• Customize the policy: by porting, you can customize or tailor-made your policy as per your requirements and needs. Thus, you can alter or change your policy to cope up with your existing healthcare needs.
• No Claim Bonus: If you have an accumulated “No Claim Bonus” with your existing insurer, then your new insurer will consider this discount and incorporate it into your new policy. The new insurer will calculate your premium based on this discount. By leading a wholesome lifestyle, you can enjoy the benefits of a no-claim bonus.
• Health insurance benefits: While switching to a new insurer, you can still enjoy all other benefits of your health insurance policy apart from no claim bonus. Portability encourages you to enjoy all the existing benefits and also avail of new ones from your new insurer.
• Premium: These days, the health insurance sector is teeming with competition. All leading insurance providers are trying to entice customers with lucrative policy plans. They want customers to purchase health insurance policies from them. So, if you port your existing policy to another insurer, your premium may lessen with enhanced benefits.

4 Reasons why insurance portability may get rejected by Company

There may be a few reasons why a person’s portability may get rejected by an insurer.

• Inadequate Information: This is the prime cause for rejection. Very often, policyholders won’t provide true and complete information to the new insurance company. Talk to your new insurer and ask them what documents they need for approval.
• Not submitting the documents in time: A policyholder should contact a new insurance company within a timeframe and apply for a switch. In the case of delay, your portability request may get declined by the new insurer.
• Claim History: If your claim history is not proper, then your request for portability may get rejected. An insurer has every right to reject the request in case of a fraudulent claim.

Now, you have an adequate idea of what portability is and what scenarios you should consider portability. For example, if you are a healthy person (with no claim history) below 45 years, you must consider portability to enhance your coverage and lessen your premium.