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

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...

Time-tested methods to pick a good mutual fund

Proper understanding of a fund is important as it enables investors to keep a tab on its actual performance THERE are various types of mutual funds and one way of segregating them is on the basis of active or passive management. Th is makes the understanding of the nature of the fund easy for a lot of investors, as it shows the basis on which investment decisions will be made. Some funds also have a mixture of both active and passive management. Su ch funds need to be considered carefully if they are to be selected as an investment avenue. Here is a look at the manner in which such funds operate and its impact on decision-making. Mixture : The selection of the portfolio of an equity oriented mutual fund can be done in an active manner. The fund manager can take the decision about which stocks should be bought and sold by the fund. On the other hand, there can be a passive fund where the decision making is not in the hands of the fund manager as a specific index is followed for...

Save Tax With Mutual Funds

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       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...

Diversification is key to gain more

Even those who prefer debt for its safety are looking at more options    It is not often that you find more than a couple of asset classes producing good returns at the same time. Invariably, assets such as gold and equity don't perform in tandem, and hence it was easier to allocate to them in line with the risk profile of the investors. In the last couple of quarters, however, more than one asset has turned attractive - gold, debt and equity. In line with the trend, you even have monthly income plans with a combination of more than two assets.    In the past, those who stuck to debt were a different class of investors who didn't wish to take risk with their money. The changing lifecycles and the growing integration of investment markets across the globe have pushed even individual investors to embrace the concept of asset allocation. Hence, you have individuals who were using debt to park profits being prepared to take advantage of other assets.    For instance, when the...
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