My wife DOB Oct 58,has health insurance from a reputed Health Insurance provider with cover of 3 lakh ( NCB 78000) since 2009. In the last renewal premium paid was Rs. 38000 for covering 2022-24. Now the renewal premium demanded for 2024-26 for 3 lakh is raised to Rs.73000/. On checking with the Insurance provider the reason is--- change of tier 65-70 Yr. copay change and price escalation etc. . They are unable to give details of various heads on which this increase is attributed. It is difficult to digest the two fold increase of premium!

Ans: It is very unfortunate that you are unable to obtain a higher limit at the age when it is required the most. This is the precise reason why health insurance needs to be taken at an early age with sufficient coverage. It is easy to enroll with higher Sum Insured and better covers at early age than after crossing 60 years of age.

Usually, the insurance cover is limited beyond this age. Due to unavailability of higher health insurance coverage the best option for you is to spend less and save more with most of your savings allocated towards liquid assets to meet emergency medical spends.

Ans: It's understandable that you're concerned about the increasing premiums and the perceived lack of benefits in your current insurance policy. Here are some steps you can consider:

• Review Your Policy Documents: Make sure to thoroughly review your insurance policy documents. Understand the terms and conditions, coverage details, and any clauses related to premium increases. It's essential to be aware of the specifics of your current policy before making any decisions.
• Compare Policies: Compare the benefits and premiums of your current policy with those offered by other insurance providers in the market. Look for policies that provide similar or better coverage at a more reasonable cost. Take into account the coverage for both term insurance and health insurance.
• Contact Your Current Provider: Reach out to HDFC Life and ERGO to discuss your concerns. Inquire about the reasons for the premium increase and whether there are any options to customise your policy to better suit your needs without compromising coverage. Sometimes, providers may have different plans or options that could better fit your requirements.
• Explore Portability Again: Since you mentioned that Star Health denied portability, consider reaching out to other insurance providers to explore portability options. Different providers may have different policies on porting combined policies, and it's worth checking with multiple companies.
• Seek Professional Advice: Consult with a financial advisor or insurance expert to get personalised advice based on your specific situation. They can help you understand the nuances of your policy, assess your needs, and guide you on the best course of action.
• Consider Separate Policies: If portability remains challenging, you may explore the option of having separate term insurance and health insurance policies from different providers. This way, you can tailor each policy to your specific needs and potentially save on costs.
• Stay Informed About Regulatory Changes: Keep yourself informed about any regulatory changes in the insurance industry that may impact your policy. Sometimes, regulatory changes can affect premium calculations or portability options.

Remember that making changes to insurance policies requires careful consideration, and it's crucial to ensure that you maintain adequate coverage for your family's needs. Always read the terms and conditions of any new policy thoroughly before making a decision. If needed, seek legal or financial advice to make an informed decision.

Ans: Sanjib, I understand your concern about the significant increase in the health insurance premium for your parents. A 40% hike is substantial, especially when managing finances for retired or aging parents. Your father, aged 64, has diabetes, and your mother, aged 61, has been managing high blood pressure for a decade. Health insurance is crucial for them, and choosing the right provider is essential.

Evaluating Your Current Health Insurance

Long-term Relationship

You have maintained the current health insurance for six years, which is commendable. This continuity provides benefits like reduced waiting periods for pre-existing conditions.

Health Conditions

Considering your parents' medical history, including diabetes and hypertension, it's crucial to have a comprehensive policy that covers these conditions without excessive restrictions or exclusions.

Increased Premium

The 40% increase in premium can strain your budget. Evaluating the reasons behind this hike is necessary. Insurers often raise premiums due to increased claims or changes in their underwriting policy.

Exploring the Option to Port Insurance

Portability Rules

Health insurance portability allows you to switch insurers without losing benefits like waiting periods for pre-existing conditions. This is regulated by the Insurance Regulatory and Development Authority of India (IRDAI).

Comparing New Providers

While other insurers offer lower premiums, it's essential to compare the coverage, benefits, and exclusions. A lower premium might come with reduced benefits or higher co-payments.

Pre-existing Conditions

Ensure the new provider covers diabetes and hypertension without new waiting periods. Confirm this before making any switch.

Benefits of Staying with the Current Provider

Accumulated Benefits

Staying with the current insurer means continuing to benefit from the accumulated waiting period, which might be fully exhausted for some conditions by now.

Policy Continuity

Continuity ensures your parents do not face new waiting periods or exclusions, which can be a risk when switching insurers.

Trusted Provider

If you are satisfied with the current insurer’s claim settlement process and customer service, it might be worth staying despite the higher premium.

Benefits of Porting to a New Provider

Cost Savings

Lower premiums with a new provider can offer immediate financial relief. This is particularly important if the premium hike strains your budget.

Potential Better Benefits

Some new policies might offer better or more comprehensive coverage, even at a lower premium. Evaluate the policy details carefully.

Healthy Competition

Porting can help you take advantage of competitive offers in the market. New insurers might offer attractive features to gain new customers.

Important Factors to Consider

Coverage and Benefits

Compare the coverage limits, room rent caps, and critical illness coverage of the current and new policies. Ensure the new policy matches or exceeds your current coverage.

Exclusions and Waiting Periods

Check the exclusions and waiting periods for pre-existing conditions with the new insurer. Ensure there are no hidden clauses that can affect future claims.

Network Hospitals

Ensure the new insurer has a robust network of hospitals in your area. Cashless treatment at preferred hospitals is a significant advantage.

Claim Settlement Ratio

Evaluate the claim settlement ratio of the new insurer. A higher ratio indicates better reliability and a smoother claims process.

Steps to Port Health Insurance

Research and Compare

Use online comparison tools to evaluate different health insurance policies. Look for reviews and ratings from existing policyholders.

Apply for Portability

Initiate the portability process at least 45 days before your current policy renewal date. This gives enough time to complete the process without a coverage lapse.

Submit Documents

Provide the necessary documents, including the previous policy details, claim history, and medical records. Complete all required forms accurately.

Wait for Approval

The new insurer will review your application and may request a medical check-up. Approval can take a few weeks, so plan accordingly.

Renew and Pay Premium

Once approved, pay the premium for the new policy. Ensure there is no coverage gap during the transition period.

Case Study: Porting vs. Staying

Let's consider a hypothetical example to illustrate the decision-making process.

Case Study: Staying with the Current Provider

Mr. Kumar, aged 65, with diabetes, and Mrs. Kumar, aged 62, with hypertension, have been with their current insurer for eight years. Their annual premium increased by 35%. They decided to stay because:

The current insurer covers their pre-existing conditions with no waiting period.
Claim settlements have been smooth, with timely reimbursements.
They value the peace of mind and continuity of coverage.
Case Study: Porting to a New Provider

Mr. Reddy, aged 63, with heart disease, and Mrs. Reddy, aged 60, with diabetes, faced a 40% premium hike. They decided to port because:

The new insurer offered a 25% lower premium with similar coverage.
The new policy had a lower co-payment for chronic conditions.
The new provider had a better hospital network in their city.
Long-term Considerations

Health Deterioration

As your parents age, their health may decline, leading to more frequent claims. Ensure the insurer has a good track record with senior citizens.

Financial Planning

Consider the long-term affordability of the premium. Opt for a policy that provides sustainable coverage without becoming a financial burden.

Emergency Coverage

Ensure the policy covers emergencies and offers cashless hospitalization in reputed hospitals. This reduces out-of-pocket expenses during critical times.

Conclusion

Porting your health insurance can offer financial benefits, but it requires careful evaluation. Compare the benefits, exclusions, and waiting periods of both current and new policies. Consider the long-term implications for your parents' health coverage. Staying with a trusted provider has its advantages, especially with pre-existing conditions. However, porting can provide cost savings and better benefits if chosen wisely. Regularly reviewing your policy and staying informed about market options ensures the best coverage for your parents.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in