How to Renew Your Group Health Insurance Policy with tips for Choosing the Right Coverage and Getting the Best Value
Renewing your group health insurance policy is an important task that should not be taken lightly. Your employees' health and well-being depend on having adequate coverage, and it is essential to choose a policy that meets the needs of your team.
Are you new to this space? Check out: The Beginner's Guide To Choosing The Right Group Health Policy For Your Employees
Every health insurance plan has a set period of validity—one, two, or three years—after which it needs to be renewed. But what happens if you fail to renew your coverage on time? Continue reading to find out.
What happens if your insurance renewal is not processed on time?
After the specified time period ends, health insurance renewals should be done on a regular basis. Here are some potential consequences of failing to renew a health insurance policy on time:
- You will lose coverage under that policy and will not be able to use it to pay for medical expenses.
- You may have to pay for medical expenses out of pocket.
- If you decide to purchase a new policy, you may have to pay an extra premium.
- Any waiting periods for coverage under a new policy will start over again.
- You may be unable to get coverage for certain pre-existing conditions until after a waiting period has passed.
- You may have to undergo a medical exam in order to qualify for a new policy.
Five Benefits of Renewing Your Health Insurance Policy Before It Expires
There are several benefits to renewing your health insurance policy before it expires:
- Continuous coverage: Renewing your Group Health Insurance policy before it expires ensures that your employees will have continuous protection against unexpected medical expenses. This is important because having a gap in your coverage could lead to higher premiums or even a denial of coverage for a member of your team, especially if they develop a serious health condition during the gap. Without continuous coverage, your employees may be unable to get a new policy due to pre-existing conditions or age limits set by insurance companies.
- Avoid underwriting: Underwriting is the process by which insurance companies assess your risk level and determine your premium rate. If you renew your policy before it expires, you may be able to avoid underwriting altogether, which could save you money on your premiums.
- Tax Benefits: Renewing your policy before it expires allows you to continue receiving tax benefits under Section 80D of the Income Tax Act, 1961. This can help you save money on your taxes and offset the cost of your insurance premiums.
- Stable Premiums: Health insurance premiums can fluctuate from year to year. As you age, the cost of health insurance tends to increase. If you are younger when you first purchase a health insurance policy, your premiums will generally be lower. If you allow your existing health insurance policy to expire, you may not be able to get a new policy at the same premium rate. This can make it more expensive to get coverage as you get older. To avoid paying higher premiums, it's important to renew your health insurance policy before it expires. This can help you maintain a stable premium rate and avoid paying more for coverage as you age.
- Maintain Your NCB Discount by Keeping Your Policy Active: No Claim Bonus, or NCB, is a discount that is applied to your insurance policy when you don't make any claims during the policy period. This discount can increase the amount of coverage you have under your policy. It's important to note that if you let your policy lapse, you will lose your NCB discount. To make sure you don't lose your NCB, it's important to renew your policy on time.
Continue reading: Advantages Of Group Health Insurance
Now that we’ve covered the importance of renewing your team’s insurance on time, let’s understand how you can ensure a smooth insurance renewal journey.
Six things to keep in mind while renewing your health insurance policy
Renewing a group health insurance policy can be a complex and time-consuming process, especially if you have a large group of employees to cover. Here are six important things to keep in mind while renewing your group health insurance policy:
- Review your current policy: Before renewing your policy, take the time to review your current coverage to see if it is still adequate for your needs. Consider any changes that have occurred in your company, such as an increase in the number of employees or changes in their health needs, and make sure your policy still meets those requirements.
- Compare policies from different insurers: Don't just renew your current policy without shopping around for other options. You may be able to find a better policy from another insurer that provides better coverage at a lower cost. Make sure to compare the coverage, premium, and terms and conditions of each policy you consider.
- Assess your employee’s needs: It's important to take into account the health needs of your employees and their dependents when choosing a policy. Consider factors such as age, health conditions, and lifestyle when selecting coverage options.
- Consider the network of healthcare providers: When choosing a health insurance policy, consider the network of healthcare providers that are covered under the policy. It's important to ensure that your employees have access to a wide range of quality healthcare providers in order to receive the best care possible.
- Work with an insurance agent: Consider working with an insurance agent who specializes in group health insurance. They can help you compare policies, understand the fine print, and select a policy that meets your company's needs. They can also help you navigate the renewal process and address any questions or concerns that may arise.
- Explore a super-top-up plan: A super-top-up plan is a type of health insurance policy that provides additional coverage above and beyond your existing policy. This can be a useful option to consider when renewing your health insurance policy, particularly if you have high medical expenses or are concerned about potential gaps in your coverage.
A super-top-up plan works by covering the costs of medical treatment that exceed a certain threshold, known as the deductible. For example, if your deductible is $50,000 and you incur medical expenses of $80,000, the super-top-up plan would cover the remaining $30,000.
There are several factors to consider when exploring a super-top-up plan:
- Deductible: Choose a deductible that is appropriate for your needs and budget. A higher deductible can lower the premium costs, but it will also mean that you will have to pay more out-of-pocket before the super-top-up plan kicks in.
- Coverage: Consider the types of medical expenses that are covered by the super-top-up plan and whether they align with your needs.
- Cost: Compare the premiums, deductibles, and copays of the super-top-up plan to those of your existing policy to determine the overall value of the coverage.
By carefully considering these factors, you can choose a super-top-up plan that provides the additional coverage you need at a cost that is reasonable for your budget.
To learn more about super-top-ups and how they work, check out this blog: What’s So "Super" About Super Top-Ups?
Documents required to buy/renew health insurance plans in India
When it comes to purchasing or renewing a health insurance plan in India, there are a number of documents that are required. These documents can vary from one insurance company to another and may be subject to change at different stages of the process.
To give you an idea, here is a list of some of the most common documents that are typically needed:
For GMC (Group Medical Coverage):
- Last Year's policy document - This is a record of your previous health insurance policy, which provides important information such as your policy number, coverage details, and premium amount.
- Claims MIS and Dump (Excel) - This document contains information about the claims you have made in the past, including the date of the claim, the amount claimed, and the status of the claim (whether it was approved or denied).
- Claims Analysis (Pdf) - This document provides an in-depth analysis of your claims history, including the types of claims you have made, the amounts claimed, and the outcomes of the claims. It is helpful to provide claims information for the past three years, as this can help you get better quotes from insurers.
- Active employee & dependent data - This document contains information about the active employees and their dependents, including their names, ages, and other demographic information.
For GPA (Group Personal Accident):
- Last Year's policy document - This document serves as a record of your previous health insurance policy and is used to verify your coverage history.
- Claims details for the past 3 years - This document provides information about the claims you have made in the past, including the date of the claim, the amount claimed, and the status of the claim (whether it was approved or denied).
- Employee demographics along with designation and sum insured - This document contains important information about the employees, including their names, ages, designations, and the amount of insurance coverage they are eligible for.
These are some of the most commonly required documents when it comes to purchasing or renewing a health insurance plan in India. It is important to verify the specific requirements of your insurance company, as the list of required documents may differ.
In conclusion, renewing your group health insurance policy is an important task that requires careful consideration. By following the steps outlined in this guide, you can ensure that you choose the right coverage for your team and get the best value for your policy.
If you're ready to renew your group health insurance policy, our team of experts is here to help. We can guide you through the process, answer any questions you may have, and help you choose the coverage that is right for your team. Simply click the button below to book a free demo call, and we'll be in touch with you.