When it comes to financial planning, one of the most critical things to consider is health insurance. A good health insurance policy can help you cover any unforeseen medical expense that may arise due to illnesses, injuries, or accidents. The coverage includes everything from hospital bills and pre- and post-hospitalisation expenses to medication costs and consultation charges.

To keep a policy active and stay insured, it’s essential to keep renewing it on time. While many policyholders opt for automatic renewal to avoid any delays and policy lapses, others renew it after receiving several reminders from their insurer. However, it’s vital to take a pause and think through certain aspects of renewing your insurance to make sure you get maximum benefits. So, here is a list of some of the major factors to consider before renewing your medical coverage.

1. Think Again about the Sum Insured

Before it’s time for you to renew your health insurance policy, take a moment to evaluate its coverage and the assured sum. It’s time to assess whether or not it is adequate to cater to the rapidly rising healthcare costs. Almost every insurer provides policyholders with the option to increase their sum insured at the time of renewal. If you are eligible for a no-claim bonus (NCB), then your insurance provider will probably increase your coverage anyway. However, you can ask the insurer for further benefits. 

2. Reassess Coverage

As your age increases, your risk of developing ailments like diabetes and hypertension increases simultaneously. If the overall status of your health changes in any way, then you should inform your insurance provider about it at the time of renewal. By declaring new health problems as they develop, you can ensure maximum coverage for when you need it the most. In addition to this, there can be many other reasons for rethinking your coverage. For instance, there may be a change in the number of your dependents. Your parents might reach the senior citizen age or there may be a newborn in your family, creating the need for adding them to your policy.

3. Consider Top-ups

In some cases, during hospitalisation, your bill may exceed the amount covered by your policy. To address such situations, it is highly recommended to buy a top-up or super top-up plan, which can add to your existing policy. These top-ups can offer an additional sum, over and above the current policy amount. Consequently, if you find yourself maxing out on your insured sum, then you have a backup to fall back on. Purchasing a super top-up or top-up from the same insurance provider is always advisable. As a bonus, the premium paid for these top-ups is also tax deductible.

4. Take the Claim Settlement Experience into Account

Before you go ahead with renewing your existing health insurance policy, take into account the claim settlement experience and customer service offered by your insurer. Think about whether or not the customer service has been satisfactory. Also, take note of the insurer's network of clinics and hospitals that can provide straightforward cashless treatment. If you feel like the claim settlement experience with your insurance provider has not been up to the mark, then it's advisable to reconsider renewing the policy.

5. Think About Portability

There is a portability feature that enables you to transfer your existing policy to a new insurer without having to compromise on your bonuses or discounts. So, if you are dissatisfied with the service of your current policy provider, then you can choose to port the policy to a new insurance provider without worrying about discontinuing your current policy, waiting period, and any rewards you might have earned on your existing policy. Keep in mind that you can only port your health insurance policy at the time of renewal and you’ll have to notify your current insurer about the change 45 days prior to the renewal date.  

All in all, it is highly advisable to reassess and evaluate your insurance needs at the time of renewal to make sure you have the best possible coverage at affordable premiums. Renewal can serve as an excellent opportunity to adjust your policy based on your evolving healthcare needs.