Why You Should Review your Health Insurance Plan Every Year

Look back on the last two years and think about how your life has altered. Besides the effects of the COVID-19 pandemic, there are sure to be quite a few other shifts as well. As a wise Greek philosopher said, "Change is the only constant in life." Our perspectives, experiences and needs change year after year. So at such times, it is essential to look for the best health insurance policies and review your existing health insurance plan, at least annually.

Health insurance policy aims to give you or your loved one financial protection so you can meet medical costs in case of unforeseen circumstances. An annual health insurance review can help you explore more suitable options for your needs or give you reassurance that you have picked the best family health insurance package available.

This article will list and explain the essential reasons to review health insurance plans regularly:

1. New features and benefits

The Indian insurance industry is expanding every day. Due to digital transformation, organisations are able to introduce more innovative insurance solutions digitally. Along with this, an increasing number of people are realising the importance of having insurance policies. With so many new policies, and enhanced features and benefits introduced ever so often, it becomes important to review health insurance needs periodically. Conducting a review will keep you informed of new developments, determine new entrants in the space, explore new products, and even help you decide the best fit for you and your needs. 

2. Lifestyle changes

Your lifestyle plays a significant role in shaping your health. A plethora of factors, such as diet and exercise, habits like smoking, your living conditions, exposure to stress, your work environment, your age, frequent travel, etc., influence your health. And any lifestyle changes affect your healthcare cost. With increasing age, your susceptibility to various diseases gets higher. Thus, an annual review of health insurance policies can ensure that you have a plan that suits your changing lifestyle, so you can reap health insurance benefits to the maximum extent. 

3. Change in the phase of life

Every stage of your life comes with changes such as that in your marital status, getting a promotion, starting a family, etc. With these changes, it is wise to review your health insurance and choose a health insurance plan that meets those needs.

For instance, you may have purchased your first insurance policy when you were single. And perhaps you got married before it was time to renew that policy. So now you would need to enhance your cover and pick a family health insurance plan to meet the healthcare needs of your spouse as well. Similarly, if you are planning to start a family, it is necessary to re-evaluate your healthcare needs and maybe go for some add-on features, keeping in mind the addition of a new family member.

4. Rise in healthcare costs

Over the past few years, the healthcare system in India has seen vast improvement. Although for the better, this advancement has in turn increased healthcare costs and hospitalisation expenses. In times of a medical emergency, the hefty expenses eat into your hard-earned savings as you have to spend money from your own pocket. Incurring such expenses can shake your financial stability, but this can be easily remedied by taking the right precautions. With health insurance claims and cashless health insurance, you don’t have to worry about paying off these high expenses from your pocket. The insurer will handle all the costs while you focus on the right kind of healthcare. But to ensure this, you need to review your policy and keep it up to date.

5. You lose on the discounts

Nearly every insurer offers a No Claim Bonus (NCB) of up to 50% for every claim-free year when you renew your policy. If you don’t renew your policy, you lose these discounts. If you don’t review your health insurance policy, not only would you miss out on NCB benefits, but you may even receive a lesser sum and land up paying higher premiums.

Interestingly, discounts given include those for adding family members to your existing policy. You can even avail a specified discount if you purchase a policy and pay a few years’ premium at one go. Plus, there are different value-added services like OPD packages, health checkups, mental awareness programs, etc. which insurers offer and if you don’t review your health insurance policy, you may miss these freebies or offers. 

In conclusion

As life unfolds, your circumstances may change and so should your insurance plan. One of the most striking features of the Covid-19 pandemic has been the role played by insurance. From having a risk-cover for meeting hospital expenses to protecting your income for the benefit of surviving family members, the importance of health insurance has never been clearer. With health insurance plans becoming more and more customisable, consistent reviews help uncover any inadequacies at the earliest as well as ensure that you have got wholesome protection and coverage at your time of need.