Given the current pandemic, the age-old adage health is wealth is now more relevant than ever. COVID-19 has revealed just how vulnerable we can be to any illness, making it all the more important to secure yourself and your loved ones with a health insurance policy. And for those who already have one, renewing your health insurance plan on time provides you with uninterrupted peace of mind and other benefits like cashless treatments from an extensive network of hospitals. Let’s look at the advantages of renewing health insurance policies on schedule.
With Aditya Birla Health Insurance, you can remain protected from unexpected financial expenses that may come your way in case of a medical emergency. To avoid paying out-of-pocket for medical care, you must have health insurance coverage. And given that health-related issues often come unannounced, it is vital to renew your health insurance on time.
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Here are some reasons why you should renew your health insurance plan on time:
Interruption in Coverage
The insurer will provide coverage against hospitalisation costs until your health insurance plan remains active. A policy becomes inactive if you don’t renew it before its expiration date. Under a health insurance plan, any claim made while inactive policy will not be accepted and immediately denied by the insurer. Further, you also can’t file a claim during the 30-day grace period that every insurance company usually provides. With that in mind, you will only be able to file a claim once your policy has been re-activated.
To file a claim on a new health insurance coverage, you must complete a mandatory waiting period. There usually is a two- to four-year waiting time for pre-existing diseases, including maternity coverage, knee replacement surgery, cataracts, and more. Accident-related hospitalisation has no waiting time. However, COVID-19-related hospitalisation has a 15-day wait, and all other diseases have a 30-day wait time. Keeping in mind the waiting period for pre-existing illnesses, ensuring timely renewal of your health insurance policy is advisable. If you fail to pay the premium after the usual grace period, you will need new health insurance coverage. Your insurer, then, will not cover your hospitalisation costs for a pre-existing illness, and your wait time will once again start with the new insurance policy.
No Claim Bonus
A no-claim bonus is another benefit you may lose if you don’t renew your health insurance plan within the time limit. If you have health insurance coverage and haven’t made a claim in the premium term, it benefits you in the form of a no-claim bonus. It essentially allows you to either pay a lower premium in the subsequent year or increase your sum insured. Aditya Birla Health Insurance Plan allows you both these options – reducing your premium or increasing your coverage. However, if you don’t renew your policy within the allotted time. You won’t be able to take advantage of the no-claim incentive.
The premium that you pay for health insurance and critical illness makes a part of your annual income non-taxable. As long as you can provide sufficient proof in the form of premium certificates. According to the Income Tax Act of 1961, health insurance has tax advantages, just like life insurance.
Choose Higher Sum Insured
Policyholders may choose to enhance their insurance coverage at the time of their policy renewal. If the current amount insured has already exceeded the policy’s maximum sum insured, no additional increases in the sum insured are permitted. If this is the case, the policyholder also has the option of purchasing an additional amount protected under a Super Top-up Plan.
Insurance policies emphasise ‘Inclusions and Exclusions’ in their terms and conditions. In most cases, pre-existing conditions are clearly stated in the policy document. Some policies require a waiting period of up to 48 months before a pre-existing ailment or sickness may be claimed. This elapsed period gets reset when a policy expires, creating further delays before coverage for pre-existing conditions can be applied. It is therefore essential to continue renewing your health insurance plan. In fact, with an increase in age, the premium charged by most insurance companies is likely to get higher too. Therefore, it is vital to start investing in a health insurance plan early and continue renewing it on time.
Insurance Eligibility Maintained
Some insurance companies or plans also have restrictions concerning age. Given that age brings with it an increased risk of health-related concerns. You may not be eligible for certain health insurance plans. It is not the case with Aditya Birla Health Insurance Plan, as you get the privilege of lifetime renewability of the coverage.
The ongoing pandemic has opened our eyes to the importance of having a health insurance plan. The advantages of investing in a health insurance plan and ensuring its timely renewal are relatively straightforward – health is wealth, after all.