Your Money- Don’t let your health plan lapse

Your Money: Don’t let your health plan lapse

By Siddharth Singhal

Timely renewal of your health policy ensures continuous coverage, irrespective of your age or changing health status. The waiting period is covered and you do not have to face the risk of rejection because of age, medical history, lifestyle habits, etc.

Continued coverage

One of the significant perils of not having continued health insurance is that it leaves the person vulnerable to medical emergencies that may strike at any moment. This situation can lead to tremendous financial strain, especially with rising medical inflation. Thus, having continued coverage eliminates this possibility as it covers medical bills, essential illnesses, etc. More importantly, it also dismisses the likelihood of receiving inadequate medical care.

Covering for waiting periods

Waiting periods are not new to health insurance. Depending on one’s degree of pre-existing condition or the type of plan purchased, the waiting period can range anywhere from 30 to 90 days or two to four years. However, with timely renewals, you can comfortably manage this part and ensure that your health policy has you covered when you need it the most. So, renew your policy in time so that you are not without coverage in case an emergency strikes during this period.

Say no to high premiums and rejections

Increasing age doesn’t come without the perils of health issues. If you happen to miss renewing your policy on time, you can expect to pay a higher premium for it and, in some cases, even be required to undergo the medical check-up again. Furthermore, you may even face the risk of rejection owing to factors like age, medical history, lifestyle habits, etc.

No claim bonus benefit

There might be a period where your policy remains untouched. This is rewarded with a no-claims bonus discount which can range up to 100% in certain policies if you meet the fitness criteria of your insurer. This benefit, however, won’t last if you miss your timely renewal. The moment your policy lapses beyond grace period, you will lose out on your NCB and have to start afresh. Not renewing your policy comes with monetary losses; make sure you don’t face them.

Tax benefits

You can stand to save up to `75,000 under Section 80D if you have invested in health insurance for self and family, including senior citizen parents. However, to claim these deductions, you need to have an active policy. Skipping your renewal, especially around the tax season, could translate into you losing out on tax benefits too. Though tax relief shouldn’t be the primary reason for buying insurance, it sure is a key part of your financial planning.

(The writer is business head, Health Insurance, Policybazaar.com) Views are personal.