Health insurance has successfully transitioned from a nice-to-have product to a must-have commodity in the last year, owing to an increase in COVID-19 cases across the country. Many people have realized that the only way to protect themselves financially from the pandemic is to invest in a comprehensive health insurance plan.
As a result, the number of people renewing their health insurance policies this year is much higher than that in previous years, data compiled by Policybazaar said.
According to Sumit Chhabra, Head-Health Insurance, Policybazaar, 85 percent of all family-floater health insurance policies sold last year had their policies renewed before expiration. Similarly, Chhabra said that roughly 80 percent of customers with individual health insurance plans renewed their policies before the expiration date.
“Renewal rates for customers with health policies older than a year were 94 percent for individuals and 97 percent for family floater plans,” he added.
Such a high renewal rate, according to Chhabra, clearly indicates that while the initial decision to purchase a health insurance policy may have been influenced by the ongoing pandemic, people have gradually realized the role health insurance can play in securing the best possible health care facilities without having to worry about the cost.
By renewing the health insurance policy by the due date, policyholders can gain access to a slew of continuity benefits such as uninterrupted coverage, No-Claim Bonus benefits, and no new waiting period.