Renewing your health insurance plan in time is just as important as getting the right one. It is an essential financial asset, and its timely renewal gives you uninterrupted coverage. Renewing your Health policy on time ensures that you continue to enjoy the benefits of the plan uninterrupted and stay worry-free. Additionally, you can also avail tax benefits for the premium paid under Section 80D of the Income Tax Act. And conveniently, just as you can buy health insurance online or offline, health insurance renewal can also be done online or offline.
What Does "Renewing" a Health Insurance Policy Mean
Your health insurance policy works similarly to a yearly subscription. You pay the premium, update relevant details, and extend your coverage for another year, staying protected against medical expenses.
Automatic renewal vs re-application
| Feature | Automatic Renewal | Re-application |
| Process | Policy renews automatically upon timely premium payment via auto-debit or standing instructions. | Requires a new application process, potentially with new paperwork, health declarations, or medical tests. |
| Convenience | Highly convenient, reduces the risk of forgetting the renewal date. | It can be more involved and time-consuming. |
| When it occurs | When the policy is maintained without lapse, and the premium is paid on time. | Typically, in cases of policy lapse, changes in coverage, or switching insurers. |
| Documentation | Minimal, usually just ensuring funds are available for auto-debit. | It can involve significant new documentation and declarations. |
| Health Review | Generally, not required if the policy is continuous. | May require new health declarations or medical tests. |
Key dates & deadlines to know
Health insurance policies usually come with a renewal date mentioned in the policy document. If you miss this date, it can cause a lapse in coverage, with a grace period of 15-30 days allowed by insurers. Regardless, claims are not typically covered in this grace period. So it is advised to track your renewal dates carefully to avoid any disruptions.
Why Renewal Is Important
Renwal plays an important role in ensuring financial security. Every time you pay premiums on time, you ensure more compliance from the insurers' end.
Avoiding coverage gaps
Any illness or accident during the lapse period can cost you a lot of money. All you need to do to avoid that is to pay your premium and renew your health insurance in time.
Keeping premiums and benefits up to date
When you renew your policy, you also sign up for new benefits, add-ons, and updated adjustments. You also get to review if your plan still aligns with what you need.
Staying compliant with regulations
Lapses can be problematic while filing taxes, travelling abroad, or submitting documents to an employer. Renewal helps you comply with such requirements and avoid these issues.
Key Factors to Review Before You Renew
Before you renew, you should review your policy in detail. This gives you a chance to reassess your plan and see if it is serving the needful.
Claims history & your usage
When renewing your plan, you should review the previous year to see the number of claims you made. A higher number of claims might indicate you need higher coverage, while minimal use could mean that you can explore lower-cost options that balance your needs with your coverage.
Changes in health needs (you, your family)
When choosing a health insurance policy or renewing it, you should select the amount with care since it covers for a year all medical expenses, and check if the premium is affordable for you. Insurance providers offer competitive premium rates, so before you renew, compare the policy premiums of rival companies to see which benefits under the policy are more affordable for you.
Premiums, deductibles, copays, and other costs
Shifting your focus from the premium, you should review your deductibles (what you pay before insurance kicks in), copayments (your share of the bill), and the maximum amount you can pay out of your pocket.
Network of hospitals/doctors & provider changes
Check the network of hospitals and doctors that the insurance company has tie-ups with to know where you can get cashless treatment. It's better to go to a hospital in the network that offers treatment without making you pay cash, since the insurer would settle medical bills with them directly.
How to Compare Renewal Options
When renewing, you're in a window to re-evaluate your current plan or your current insurer. Switching insurers at renewal can save you money and give you better coverage.
Same insurer: what changes might happen
- You might see an increase in premiums, promising further benefits
- Some benefits may be updated to more suitable or attractive options.
- New add-ons could be available. It would be smart to review the insurer's renewal notice carefully to avoid surprises.
Alternative plans: what to look for
| Feature | Description |
| Sum insured vs. premium value | Comparison of the coverage amount with the cost of the insurance. |
| Coverage for pre-existing conditions | Whether the policy covers health conditions that existed before the policy started. |
| Waiting periods for specific treatments | The duration you need to wait before you can claim for certain medical procedures. |
| Customer service reputation and claim settlement ratio | The insurer's reputation for customer support and the percentage of claims they approve. |
Checking extra/ancillary benefits (telemedicine, wellness, mental health)
- Telemedicine consultations: Insurers often tie up with telemedicine companies to provide medical advice, diagnosis, and consultations remotely. Insurance plans cover these benefits as extra perks and help customers access these services without extra costs or at discounted rates.
- Wellness programs like gym memberships or preventive checkups at wellness centres are usually available at cheaper rates or for free.
- Mental health coverage is increasingly vital in today's world. Insurers collaborate with mental health wellness centres and consultants to give you discounted offers or limited free consultations per year.
Tips for a Smooth Renewal Process
Renewing doesn't have to be stressful. You can take your time and plan your renewal process after considering every criterion. Here's a checklist to get started:
Start early & set reminders
Mark your renewal date on your calendar and set reminders a month in advance. This gives you time to compare options and avoid last-minute stress.
Get all documents & health records ready
Have your ID proof, past medical reports, and policy documents organized. If you're making changes, insurers may ask for updated health records.
Ask questions & clarify hidden costs
Don't hesitate to reach out to your insurer or agent. Confirm if there are any hidden charges, loading (extra premium for claims history), or limitations on new benefits.
What Happens If You Don't Renew On Time
The consequences of missing your renewal deadline can be serious. Practically, you're placed in a lapse zone, where the insurer won't cover medical expenses, and you risk paying out of your own pocket.
Gaps in coverage & waiting periods
A policy cannot be renewed after it expires. If you don't renew your health insurance policy by the due date, the insurance provider gives you a grace period of 15 days to prevent the policy from expiring. If you renew the policy before its expiry, you will continue to receive benefits and won't need to undergo a new medical exam. The renewal premium is also considerably lower than the standard one, so it's best to renew it before the renewal date.
Possible increase in premiums or limited options
A lapse can also mean higher premiums when you reapply, since insurers may re-evaluate your risk. In some cases, older individuals or those with health conditions might face limited renewal options.
Conclusion
Renewing your health insurance policy is an investment in your future. Understanding the process can secure continuous coverage and remain stress-free. And that is where Manipal Cigna comes in. With different plans to choose from and designated health insurance experts, you can rest assured. Timely renewal of plans provides benefits like health check-up benefits, access to over 15000 hospitals, and unlimited restoration of Sum Insured in a policy year.
Visit www.manipalcigna.com or talk to our Health Insurance Experts to learn more.
Frequently Asked Questions (FAQs)
Can I renew if I had claims last year?
Yes, as long as you have paid your premium on time, you can renew your policy. But insurers might adjust your premium or apply an extra premium depending on the number of claims you made last year.
Will premiums always go up?
Not always, because some insurers reward claim-free years with no-claim bonuses. This could mean higher coverage at only slightly increased cost.
Is renewal automatic every year?
It depends on whether you have set up auto-debit with your insurer. By default, premium payments are manual, so you should check your policy terms to confirm.
