Skip to main content

What you need to know about Health Insurance Portability ?

What does 'Health Insurance Portability' mean?
Health Insurance policy holders, who are not satisfied with the services of the present provider, will be able to switch/change their service provider without losing the basic coverage of health insurance.
As per IRDA portability rules, consumers will get credit for the time already spent for covering the pre-existing disease along with bonus accrued to him from his past insurer.

What all benefits you can shift under 'Health Insurance Portability'?
Health Insurance Portability allows you to shift from one health insurance provider to another, without having to lose any of the benefits that your current health insurer provides. It includes -
1. The credit from the waiting period already completed can be carried forward to the new insurer.
2. Any bonus accrued to him (insured) from his past insurer.
3. The new insurer will provide some cover, at least up to the cumulated sum assured in the old insurance policy.

What happens if the customer applies to the new insurer does not have a similar policy?
If the new insurer does not have a similar policy, the policyholder will have to purchase one with a higher sum assured. Suppose a person with insurer A has a sum insured of Rs 3 lakh. When he shifts to insurer B. However, if insurer B has no product offering Rs 3 lakh as sum insured, he will have to offer the nearest higher slab of, say, Rs 4 lakh. While the premium will be charged on Rs 4 lakh, the portability benefits will be limited to Rs 3 lakh.

What happens if the customer applies for an increased sum insured in the new ported policy?
If the customer has a policy of sum insured of Rs. 4 Lakhs, and now he/she wants to port the policy to another insurance company with a higher sum insured of Rs. 10 Lakhs. The portability relief in waiting periods in the new policy would only be to the extent of Rs. 4 Lakhs sum insured. The waiting periods for the additional sum insured of Rs. 6 Lakhs would similar to a fresh policy.

What happens if the customer has holding an old policy for two years (which has waiting period for pre-existing conditions for 4 years)?
The policyholder will be able to carry over the waiting period with respect to pre-existing ailments. The waiting period for most pre-existing conditions is four years. So, say, the person wants to shift after a year itself. His waiting period for the pre-existing ailment will be three years with the new insurer.

I have bought a policy of sum insured of 2 lakh, a few years back and have cumulative bonus of Rs. 50,000; what would be the new sum insured after porting the policy to new insurer – 2 lakh or 2.5 lakh?
It would be 2.5 Lakh. For example - A person with insurer 'X' has a sum insured of Rs 2 lakh and cumulative bonus of Rs 50,000. When he shifts to insurer 'Y' his sum insured will automatically beRs 2.5 lakh. However, if insurer 'Y' has no product offering Rs 2.5 lakh as sum insured, it will have to offer the nearest higher slab of, say, Rs 3 lakh. While the premium will be charged on Rs 3 lakh, the portability benefits will be limited to Rs 2.5 lakh.

I have a health insurance policy from life insurer e.g. LIC; can I switch my policy under 'Health Insurance Portability'?
Currently, Health insurance portability will be limited ONLY to non-life insurers .

I am currently covered under Group Health Insurance Policy of my company; can I switch my policy under 'Health Insurance Portability'?
Currently portability will be allowed ONLY to individual health policies, which also includes family floater policies. For policyholders covered under Group Health Insurance policy first have to shift to individual health insurance to same insurer (from where they are covered under group policy) then in future they can port their policy to new insurer.

What things one need to watch out for?
The following are some of the conditions for which you should watch out, while switching your health insurance policy –
1. Maximum renewable age - Certain policies do not let you renew them after you reach a certain age.
2. Exclusions - Not all policies are same; certain exclusions are there in each policy. Check each one of them before you should switch.
3. Moving job - If you are moving jobs, then you can take advantage of portability.
4. Not all benefits continue - Not all policies are same; so check that all benefits that you are looking for are there in new policy.
 
Download Tax Free IDFC Long Term Infrastructure Bond and L&TLong Term Infrastructure Bond below:
 
 

Popular posts from this blog

Mirae Asset Healthcare Fund

Best SIP Funds to Invest Online   Mirae Asset Global Investments (India) has launched Mirae Asset Healthcare Fund. The NFO of the fund will be open from June 11, 2018 to June 25, 2018. Mirae Asset Healthcare Fund is an open-ended equity scheme investing in healthcare and allied sectors. The scheme will invest in Indian equities and equity related securities of companies that are likely to benefit either directly or indirectly from healthcare and allied sectors. The investment strategy of this scheme aims to maintain a concentrated portfolio of 30-40 stocks. Healthcare is a broad secular theme that includes pharma, hospitals, diagnostics, insurance and other allied sectors. The fund will have the flexibility to invest across markets capitalization and style in selecting investment opportunities within this theme. Neelesh Surana and Vrijesh Kasera will manage this fund. In a press release, Swarup Mohanty, CEO, Mirae Asset Global Inves...

How to Decide your asset allocation with Mutual Funds?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) How to Decide your asset allocation ? The funds that base their equity allocation on market valuation have given stable returns in the past. Pick these if you are a buy-and-forget investor. Small investors are often victims of greed and fear. When markets are rising, greed makes the small investor increase his exposure to stocks. And when stocks crash to low levels, fear makes him redeem his investments. But there are a few funds that avoid this risk by continuously changing the asset mix of their portfolios. Their allocation to equity is not based on the fund manager's outlook for the market, but on its valuations. Our top pick is the Franklin Templeton Dynamic PE Ratio Fund, a fund of funds that divides its corpus between two schemes from the same fund house-the...

GOLD ETFs

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   GOLD ETFs       Gold funds and ETFs have also lost the tax advantage they enjoyed over physical gold after the Budget changed the rules for long-term capital gains from non-equity funds.   Last year, gold exchange traded funds ( ETFs ) had gained a great deal from the depreciation in the rupee and the UPA government's move to impose additional levy on gold imports, making it an attractive option for investors. The landed price of the yellow metal had surged, pushing up the net asset value ( NAV ) of gold ETFs. However, the recent budget proposal by Finance Minister Arun Jaitley has thrown a spanner in the works for gold fund investors. The revised tax structure for all non-equity funds, includi...

IIFL NCDs

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India) IIFL NCDs IIF's six-year unsecured NCD 2012 Risk-wary investors should stay away from this issue, and even, risk-taking ones should think twice It is a public issue of unsecured redeemable non-convertible debentures ( NCDs ) by India Infoline Finance ( IIF ), an unlisted company, which is a 98.9 per cent subsidiary of India Infoline, a listed company. The issue seeks to raise Rs 250 crore with an option to retain over-subscription up to Rs 250 crore taking the total potential issue amount to Rs 500 crore. It will be open for public subscription from September 5 to September 18 with a minimum application size of Rs 5,000 in the form of five NCDs of face value Rs 1,000, TENURE & RATES: IIF will redeem the NCDs at the end of six years, and investors wanting out before six years will be able to sell the...

Tax saving tools to maximise returns

  An Individual can claim a deduction up to Rs 1 lakh U/S 80C of the Income-Tax Act, 1961 ('Act') by incurring a certain expenditure or making specified investments. Few of the popular schemes which are generally availed of by the individuals, inter-alia, include the following: Expenditure-Related Deductions Broadly, the expenditure-related deductions include tuition fees and home loan payments.    Tuition fees for full-time education in any Indian university, college, school, and educational institution, for any two children is eligible for deduction. However, development fees or donations are not considered.    The principal amount re-paid against a home loan to banks or certain category of employers is also eligible for deduction. Stamp duty, registration fees and other expenses incurred for the purpose of acquisition of such a house property are also eligible for deduction.    It should, however, be noted that the cost of renovation/house repairs after the completio...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now