I have been with the same health insurance company for six years. I am not satisfied with their service and want to switch to another insurer. I am worried that if I switch, I will lose the waiting period benefits I have already served, including for my pre-existing conditions. Is there a way to port my policy without starting the waiting period all over again?
– Name withheld on request
Yes, you can switch health insurers through the portability facility mandated by the Insurance Regulatory and Development Authority of India (Irdai). Portability allows you to transfer your accrued waiting period credits to a new insurer, including the waiting period already served for pre-existing conditions. The new insurer is required to give you credit for the years already completed with your existing insurer.
To initiate portability, apply to your new insurer at least 45 days before your renewal date. You will need to submit a portability form, your existing policy details, and your claim history. The new insurer will evaluate your application and may accept, reject, or offer modified terms.
Key conditions
A few important points to keep in mind:
I am 38 years old and bought a term insurance policy of ₹50 lakh seven years ago when my annual income was around ₹10 lakh. My income has since grown to ₹18 lakh a year. I have two young children and a home loan outstanding. I now feel my cover is inadequate. Can I increase the sum assured on my existing policy, or do I need to buy a new one? What is the best approach?
– Name withheld on request
Most term insurance policies do not permit an increase in sum assured after issuance. You will need to buy a separate additional term plan to bridge the gap. Buying a second policy alongside your existing one is common and straightforward.
How much is enough?
A standard rule of thumb is to carry life cover of at least ten times your annual income. With your current income of ₹18 lakh and an outstanding home loan, you should ideally have total cover of at least ₹2 crore.
After accounting for your existing ₹50 lakh policy, you need an additional ₹1.5 crore of cover. Factor in the outstanding loan amount separately and add that to your coverage requirement.
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