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7 reasons to review your health insurance plan annually

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Health insurance offers coverage to the policyholders and their families financially against uncertainties.

7 reasons to review your health insurance plan annually
Health insurance offers coverage to the policyholders and their families financially against uncertainties. However, to draw the best from the health insurance policy, choosing a suitable insurance product in line with the changing healthcare needs is paramount.
One of the effective ways to get the best from the policy is to review it. Reviewing the policy closely helps policyholders in standing closer to a tailor-made product, especially at the time of the purchase.
Reviewing the insurance portfolio is significant because their requirements keep changing through different junctures of lives, ranging from changes in assets to liabilities, etc.
Here are a few benefits to why reviewing health insurance is of utmost importance (As compiled by InsuranceDekho):
New features
With the help of the digital transformation of businesses, new-age insurance companies are introducing some more innovative insurance solutions digitally. They are adding more products with newer features and benefits every year.
By conducting a review of the policy, policyholders can come to know about these new entrants in the health insurance space.
No claim bonus
Almost every reputable insurer offers a good percentage of No Claim Bonus (NCB) for every claim-free year. This bonus can range between 100 percent to 150 percent.
Skipping reviewing the policy means there are chances that policyholders may miss out on these NCB benefits or receive less NCB. In such a case, they may end up paying higher premiums.
Pre-existing diseases (PED)
Failing to review health policy could lead to impacting the PED. For instance, say 2-year waiting period is applicable for the disease like cataract. By reviewing the plan on a yearly basis, policyholders might come to know about an insurance company that is providing customers with a much lower waiting period on the pre-existing diseases than their existing insurer and that too at lower premiums.
Health condition
It may be that the current insurer is not covering lifestyle diseases like diabetes, whereas there are certain policies that do or give an option to add diabetes to the policy coverage benefits. Reviewing the policy before renewing it can help policyholders in porting policy or choosing the one that covers lifestyle diseases.
Lifestyle changes
Plenty of things influence the health condition such as age, work environment, lack of exercise, stress level, diet, living conditions, habits (smoking, and many behavioral factors). The costs of health care are greatly affected by lifestyle changes. With the possibility of developing various diseases year on year, it’s wise to review the health insurance policy and customize it accordingly.
Coverage and premium
Competition in the health insurance industry is intense. Due to the fierce competition, insurance companies tend to revise coverage benefits for more diseases and ailments. For example, no cover under health insurance was available for cataracts, but it is now covered under daycare treatment.
Marriage and parenthood
Some changes happen in every phase of life and so does health insurance. The policy needs changes with some major events taking place in life. For example, a policyholder is single when he/she bought the policy but got married at the time of renewal of the policy. So, now he/she has additional responsibilities. In this condition, the policyholder needs to enhance cover and opt for a family floater to meet all healthcare needs under one umbrella.
In addition, if the policyholder is planning a family or on way to parenthood, re-evaluating healthcare needs is necessary. It’s good to review the plan and make sure if there is an option to cover newborn baby expenses at the time of the plan’s renewal.
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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