Health risks are an inevitable part of life. Given the current circumstances, it has become even more crucial to be financially protected against medical emergencies. A health insurance plan is designed to reduce the burden of medical expenses on the insured person. It contractually binds the insurer to pay for the insured person’s healthcare-related costs.
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When you are covered with health insurance, you can remain adequately protected under medical emergencies. However, your requirements from the policy may not stay the same throughout your life. In fact, a person’s health is most susceptible to changes within a short span.
Therefore, making it a habit to review your health insurance plan each year can help in optimizing the benefits. Let’s discuss the following reasons in detail to understand better the purpose of reviewing:
- New Policy Benefits
The purpose of financial instruments like health insurance is to cater to the health-related costs in a person’s life. These policies have to remain relevant to the evolving needs of the customer for effective protection. Therefore, new products with better benefits and features are introduced from time to time to ensure that.
When you examine your existing health insurance plan against the new features, it gives you a clearer perspective on your requirements. In a few cases, your insurance provider may be offering additional benefits under the health insurance policy. You can buy health insurance plan that is best suited to your demands by staying updated
- Changes in Lifestyle
Your health conditions are affected by a multitude of things such as age, physical activity, environmental conditions, stress levels, eating habits, and general lifestyle. Other than that, habits such as smoking can lead to increased risk exposure to medical issues.
These lifestyle factors play a key role in determining the cost of health insurance. Since the insurer is essentially covering for risks associated with the insured person, they carry out a thorough risk assessment at the time of purchase.
As you grow older or introduce certain habits in your lifestyle, it may increase the possibility of developing medical conditions. This is a crucial reason why you should evaluate the value of your health insurance plan each year.
- Increasing Healthcare Costs
The cost of healthcare in India is rising at an astonishing pace. In such conditions, it may be unwise to depend on your savings entirely. As medical prices increase, making sure that your health insurance provides sufficient coverage is essential.
In case the support from health insurance is not adequate in a time of need, it can result in tremendous financial pressure. Therefore, analyzing if your health insurance plan is meeting the current requirements is advisable.
- Different Life Stage
At various stages in life, the financial requirements also go through significant changes. Not to mention that your health will also be affected as time goes by. For instance, major life events such as marriage or the birth of a child require a reassessment of your financial plans for the future.
In case you were unmarried at the time of buying health insurance, your priorities might have been vastly different at the time. The additional responsibilities in life require an enhanced health insurance plan, giving your family suitable coverage. You can find health insurance plans that cover your whole family under one policy.
- No Claim Bonus
Most insurance providers offer a No Claim Bonus to the policyholders if they don’t claim the policy for a year. This bonus ranges between 10 percent and 100 percent, depending on the claim-free years.
You might miss out on the No Claim Bonus if you skip the review of your health insurance at the end of the year. Consequently, you might end up paying higher premiums unnecessarily. Hence, availing of the No Claim Bonus after each claim-free year can reduce your financial burden.
- Competitive Pricing
As different types of health insurance plans are introduced in the market, there is competitive pricing to attract more customers. This can mean better benefits at a lower cost for you as the policyholder. By reviewing the health insurance regularly, you can evaluate the cost-effective alternatives and choose accordingly.