Here’s why switching health insurance policy to maximise health benefits can be a wise decision

A health insurance policy helps to meet unforeseen medical expenses. However, the medical needs have changed dynamically with modern lifestyle and those who are stuck with decade-old health insurance policies may not find appropriate financial protection. Older policies may not have taken into consideration the inflation factor and the nature of diagnosis for certain diseases.

Therefore, switching an existing health insurance policy would be a wiser decision to maximise the benefits and get the most out of the premium paid.

Which switching option to consider?

There are two options for you to consider while switching a health policy. You can choose to port or migrate an existing health insurance plan. Porting refers to choosing a plan under a different insurer and it is ideal if you're not satisfied with the existing policy and the services provided by the current insurer. On the other hand, migrating refers to choosing a new policy under the same insurer in case you're happy with the services provided, but are disappointed with the policy terms.

What improvements should you look for while switching a health policy?

While choosing a new health insurance plan or upgrading your existing policy, look for the following features:

Better services: In case you're migrating due to poor services by existing insurer, make sure that the new insurance company provides better services. Check reviews for factors like customer service or claim processing and decide on taking up the policy.

Wider coverage: Since most health insurance policies offer restricted coverage, while switching try looking for policies that provide wider coverage and lower the chances of you paying from your pocket in case of a medical emergency. Make sure that there are no room-rent sub-limits and try opting for policies that provide day care or OPD coverage in case you're diagnosed with a chronic disease.

Cost-effective premium: Try looking for better services and features for the same or lower premium. However, if the features are exceptionally beneficial then opting for a higher premium wouldn't harm you.

Advantages of switching a health insurance policy

·     Better features at the same or lower premium.

·     Wider coverage helps you to save money on medical expenses for certain diseases

·     Improved services if you choose the right insurer.

·     Eradication of time-bound exclusions

Disadvantages of switching a health insurance policy

·     Fresh underwriting and waiting periods every time you shift to a new health insurance plan or a new insurer.

·     Permanent exclusions, especially for those with existing illnesses.

Even though there are a few drawbacks of switching a health plan, the benefits make up for it as you're offered with better value of the premiums paid. Switching an existing health insurance plan should depend on your medical needs and it’s advisable to consider all associated factors before taking the final decision.