How to renew health insurance plan

A health insurance policy typically provides coverage for a year. It must be renewed before expiry so that you are covered in case of a medical emergency. 

Failure to do so can result in disadvantages like out-of-pocket medical expenses, loss of accrued benefits, and higher premiums for new policies. However, timely health insurance renewal can avoid these issues.

Renewing policies online takes only a few minutes. The article will explain the steps and factors that will help you with the renewal process.

Benefits of renewing health insurance before expiry

Here are the benefits of renewing medical insurance before it expires.

• Continued coverage

Medical issues can be unpredictable. If you pay the premium amount before the due date, you receive coverage without missing any days in between. You can raise a claim as soon as the policy is renewed.

• Accrued benefit

Benefits like the no-claim bonus are only carried over when you continue renewing the policy on time. Over the years, the bonus can help increase the sum assured or get discounts on premiums.

• Tax savings on premium

Under Section 80D of the Income Tax Act, individuals can claim up to Rs. 25,000 in tax deductions on health insurance premiums.

• Lifetime renewability

According to IRDAI, once a health insurance policy is accepted and is renewed without any breaks, the policy is then lifelong renewable. Your policy renewal cannot be denied based on age.

Grace period for health insurance renewal

If you fail to pay the premium before your health insurance expires, you can still renew the policy during the grace period. Most insurance providers offer a grace period of 15 to 30 days, starting after the premium due date.

If you successfully renew the policy during the grace period, benefits like coverage for pre-existing diseases will continue. Please note that during the grace period, health insurance coverage will not be available. You cannot raise claims during this period.

Disadvantages of failing to renew health insurance

If you miss the renewal due date, here are the insurance disadvantages you may have to face.

• No coverage

An inactive health insurance policy means paying out of pocket for medical expenses. This can be a significant financial setback.

• Undergo health screening

When applying for a new policy, you may have to undergo health screening. If a new condition is detected, it can lead to higher premiums and longer waiting periods.

• Higher premiums

The premium for health insurance may increase with age due to a higher risk of diseases and health problems. For example, if you get a ₹10 lakh cover at a premium amount of ₹6,200 to ₹11,970 at the age of 35, the same plan can cost you between ₹6,931 and ₹14,948 at age 45. This is an indicative number to highlight how your health complications and vulnerability to illness can impact your health insurance premium with age. So, renewing your current plan makes more sense than defaulting on the previous one and buying a new one later. 

• Waiting Period

Medical insurance typically has a 30-day to four-year waiting period for pre-existing conditions. The clock on the waiting period will be reset with a lapsed or new policy. You will have to continue paying out of pocket for such conditions.

Things to know when renewing health insurance

• You cannot make claims during the grace period.
• You can switch to another insurance provider at the time of renewal.
• Re-evaluate your insurance needs by considering your lifestyle, family history, and rising healthcare costs.
• If there is no change to the sum insured, the insurer cannot call you for a medical examination at the time of renewal.

Steps to renew health insurance on PhonePe

Here are the health insurance renewal steps with the PhonePe app.

Step 1: Open the PhonePe app and navigate to the Insurance section.

Step 2: Tap on Insurance Renewal. Next, select the insurance category (in this case, it will be health).

Step 3: Find your insurance provider on the list and tap their name.

Step 4: Enter your policy number (Some providers may also require your date of birth). Tap on Confirm. You may see details like customer name, premium amount, and due date if you have active health insurance.

Step 5: You can complete the payment through a debit/credit card or a UPI account. Once the payment goes through, your policy renewal process is complete.

Key Takeaways

Online platforms simplify the health insurance renewal process. Paying the premium before the due date can provide benefits such as continued coverage, no-claim bonuses, and lifetime renewability.

Failure to renew a health policy can leave you unprotected, and buying a new policy as you age can be expensive. Thus, make the most of online tools and renew your health insurance within minutes.

For a convenient and streamlined insurance buying experience, consider using platforms like PhonePe.