subject: Need, importance and benefits of switching Health Insurance [print this page] Need, importance and benefits of switching Health Insurance
Need:If you are not satisfied with the services of your health insurer, what should you do? Earlier nothing, but now from 1stof July thanks to Health Insurance Portability, you will be able to switch to another health insurer without losing any of the benefits that your current health insurer provides.
Importance:If you want to shift from one place to another, that is, relocating, there is a chance that due to lack of insurers' office providing necessary policy service at the new location. Secondly, if you are shifting from one organization to another organization many times you losehealth insurance cover due to lack of portability of the health insurance policies especially loss of Pre Existing Diseases (PED).
Benefits:It is essential to protect the policyholders against discontinuity and consequential loss of PED cover by making the health insurance plans portable across theinsurance companies thus IRDA has allowed health insurance to be portable from 1stJuly.
The portability will ensure that the policyholder is not tied to one single insurer throughout his life for fear of losing the cover of PED.
Policyholders who have chronic illnesses like cataract, hysterectomy etc can "carry forward" the credit gained for pre-existing conditions in terms of waiting period enjoyed with previous insurance company, as per the new portability guidelines. (For example if under a previous policy, the condition was excluded from coverage for two years and under a new plan with a different insurer the exclusion period for the same condition is three years, the new health insurance policy can only exclude the condition from coverage for one extra year).
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