Health insurance: In view of skyrocketing medical costs, getting medical insurance cover is no longer a luxury but a necessity for most of us. Once you are tied to one insurer, you may get stifled for a variety of reasons. This could be because of high premiums, small coverage or restrictive clauses.
What can you do in such a case? Well, you could simply port your health insurance plan to another insurer. There are multiple reasons for which you could consider porting your insurance plan. Let us find more on this here.
I. Better coverage for the same premium: Sometimes, you want a better or higher coverage at the same insurance premium. In such a scenario, you may want to port your insurance plan.
“The main factor to consider is if the price and terms of the new insurer are significantly better. Over time, insurers can introduce products with new features or lower prices, and a good way to get access to these is through porting,” says Kapil Mehta, Co-founder, SecureNow.
“One driver to switch is inevitable premium optimisation. With new products coming out onto the market and competitive pricing options, switching sometimes gives policyholders a much broader cover in exchange for sustainable pricing,” says Arun Ramamurthy, Co-founder, Staywell.Health.
II. Change in life stage: One more reason to port the health insurance plan is a change in the life stage, for instance, marriage and children. “Life stage changes, such as a wedding or having children, are another key trigger, as they often require a higher sum insured or broader benefits. The biggest advantage of porting is that you can carry forward your continuity benefits, including waiting periods already served and accrued No Claim Bonus,” says Siddharth Singhal, Head, Health Insurance, Policybazaar
III. Restrictive clauses: Another reason could be that the restrictive clauses of your current plan have made it too unsavoury. For instance, the number of hospitals is small, some common ailments are not covered, etc.
“Porting also makes sense if your current plan has restrictive clauses like room rent limits or co-payments, as switching allows you to access policies with more flexible terms,” adds Singhal of Policybazaar.
IV. Bad experiences with claims: Another common reason for porting the insurance plan is that you had a bad experience with your insurer, which, explains one expert, motivated you to look for an alternative one.
“If someone had some claim experience that was less than satisfactory, whether it be delays, rejection of their claim, or service to deal with their claim experience, they may decide to port to an insurer with better transparency and claim settlement experience,” says Ramamurthy.
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