Portability is transferring your health insurance policy from one provider to another for various reasons. Here are a few factors that typically influence a policyholder’s decision to switch health insurance plans:
Things To Consider Before Porting
Check out the item to which you want to transfer your policy. It should primarily offer comparable advantages or a few special extras that make it comprehensive in light of your needs. Consider product features like room rent, co-pays, waiting periods, and pre-existing conditions.*
Observe The Policy Type
Look over the different policy options. You can select a Family floater or a multi-individual policy, for instance, if your current policy is Individual and you want to add members.
Look at the waiting period of the policy. When porting a health insurance policy, the said waiting period should ideally be waived off in your new policy on the specified Sum insured because you will have already spent a few years in your existing policy, say two years.*
Unutilised Cumulative Bonus
People frequently need to be aware of this important factor when transferring policies. A Cumulative Bonus that has accrued on your policy must be transferred to the newly ported health insurance. *
How to accomplish that:
- The unutilised cumulative bonus shall increase the aggregate Sum insured. Consider a scenario in which your current SI is Rs. 5 lakh and your cumulative bonus (CB) is Rs. 1.5 lakh. To continue receiving the benefits of the policy’s waiting period, the total Sum insured for a newly ported policy must be at least Rs 6.5 lakh (5 lakhs + 1.5 lakhs), and the Sum above may be used for subsequent claims. *
- For example, many unknowingly selected the Existing Base Sum Insured only for the New Ported Policy for five lacs. The entire cumulative bonus, however, is forfeited in the same transaction. *
Optional Sum Insured
As mentioned in point 4, the Sum insured chosen should at least equal the Base Sum Insured of the Policy plus any Unused Cumulative Bonus. *
Additionally, the Sum Insured may be raised above this figure. Assume that the Sum of the existing base and unused CB is approximately 15 lacs over two years and that the new policy’s Sum Insured is 25 lacs.
Look for extra features that will help to expand the scope of your current policy, such as those that cover Consumables, include a cumulative bonus shield, and raise your Sum Insured. However, because they are more expensive, you should only add them if necessary and add value. A health insurance premium calculator is an easy-to-use tool to determine the premium you would need to pay.*
Remember to give your prior insurer plenty of notice before the renewal. Make sure you have the renewal notice on hand to give to a different insurer as part of the paperwork for verifying policy specifics like the insured Sum, the members covered, the cumulative bonus, etc. Additionally, the policy type to be ported in, claim information with the current policies, and policies for the previous two years must be submitted.*
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.