Did you know that around 10% of policyholders saw their renewal prices jump by 30% or more, yet only half could afford to pay the full amount? Many people do not realise that loyalty to one insurer does not always mean better deals.
In fact, a careful comparison of coverage, benefits, and premiums can often reveal a smarter, more affordable health insurance policy. So, before you hit that renewal button, let us explore how to compare health insurance plans effectively.
10 Parameters to Compare Health Insurance Plans Before Renewal
Below are 10 parameters that will help you compare health insurance plans during renewal.
- Sum Insured
Always ensure that the maximum coverage amount you receive when you go for health insurance policy renewal is adequate. Take into account your city’s healthcare costs as well as potential medical expenses and rising healthcare inflation in India, which is currently at 12-14% per year.
- Premiums and Coverage
Balance your affordability with comprehensive coverage. If you have a limited budget, then you can go for a basic health insurance policy that covers essential hospitalisation expenses and emergency care. Later, you can upgrade to a comprehensive policy with added benefits, such as critical illness protection.
- Inclusions and Exclusions
Always read the inclusions and exclusions of the health insurance plan. Pay close attention to the changes in your new policy document at the time of health insurance policy renewal. This can prevent you from petty claim rejections in the future. Additionally, review the policy fine print for specific exclusions that might impact you.
- Waiting Periods
Remember to check the waiting periods for specific illnesses and pre-existing conditions. Many health insurance policy documents mention waiting periods. Always select a plan with shorter waiting periods.
- Coverage Limits and Co-payments Clauses
Look for plans with no or minimal coverage limits on specific expenses, such as room rent. Moreover, always try to minimise your financial burden when making a claim. You can do this by looking for a health insurance policy where you pay a very minimal portion of the bill.
- No-Claim Bonus (NCB)
Check if the plan offers a favourable NCB. Whether it is in the form of an increase in sum insured or a premium discount for a claim-free year, make sure that the insurer provides NCB. You should also ensure that you do not lose accumulated benefits if you get your health insurance policy renewal from a different insurer.
- Renewability
Over 70% of old people in India suffer from a chronic illness. Always opt for a plan with lifelong renewability, as continuous coverage is vital in old age, when medical needs are higher.
- Claim Settlement Ratio (CSR)
You should choose an insurer with a consistently high CSR, as it indicates reliability and efficient claim processing. A high CSR also indicates a lower chance of your health insurance claim being rejected.
- Network Hospitals
During healthcare emergencies, access to cashless claim settlements can mean a lot. It can reduce a lot of your stress and provide time for you and your family to heal. Therefore, always verify that the insurer has an extensive network of hospitals, especially those in your vicinity, to easily access cashless treatment.
- Customer Reviews and Reputation
Never forget to get a true and genuine idea of the insurance provider. Read online reviews and seek feedback from friends or family about their experience with the insurer’s customer service and claim process.
3 Things That You Need to Work on Before Renewing Your Health Insurance Policy
You should always compare different plans and options for health insurance. Moreover, you also make sure that you are evaluating your needs appropriately. Here are a few things that you can keep in mind before renewing your health insurance policy:
- Review Your Health Status
During the time of health insurance policy renewal, personally note any new medical conditions you are facing or might face. Pay attention to the changes in your existing health conditions and analyse potential health risks based on family history. This can help you get better coverage during renewal.
- Consider Lifestyle Changes
Take into account any significant life events that might happen. Marriage, new dependents/children, or a new job may require you to change your coverage. You can choose from a range of plans, including family floater plans, maternity benefits, and more.
- Evaluate Your Coverage Requirements
Determine if you need additional benefits, such as critical illness cover or coverage for alternative treatments. This can enhance your health insurance policy during renewal. For instance, adjusting your policy to a higher sum due to medical inflation in your area.
Bottom Line
To compare plans effectively before renewing your health insurance policy, assess your current and future healthcare needs, and review key policy parameters. By thoroughly reviewing these factors, you can select a health insurance plan that best fits your current needs at the time of renewal.
