Group Health Insurance: When a person changes or leaves the job, they often do not realize that their company’s group health insurance policy automatically terminates on the same day.
In such a situation, if any medical emergency arises, it is time to bear the entire cost of treatment from your own pocket. However, there is good news for you! You can port your group plan to an individual or family floater policy and that too without losing the old benefits.
How exactly does the policy porting process work?
Policy porting means that you exit your company’s group policy and enter a retail policy of any insurance company. This process helps you preserve the benefits of your old policy in the new policy.
You need to apply for this process at least 45 days before the expiry of your group policy.
After you apply, the new insurance company determines the premium for your new policy by considering your medical background and age.
Once approved, your new plan starts immediately without any interruption in the old policy.
What are the benefits of porting?
The most important benefit of the porting process is that your waiting period and your previous claim record are transferred to the new policy.
For example, if you have completed a 2-year waiting period in a group policy, that period is also counted in your new retail plan. If your new policy has a waiting period of 4 years and you have completed 3 years in the old policy, you will now have to complete only 1 year of the waiting period.
This gives you proper coverage for claims from day one in the new policy. The terms and conditions of the new policy may be slightly different, such as room rent limits or co-payment rules.
Avoid these mistakes, otherwise you will miss the opportunity!
The biggest mistake people make when changing jobs is to port their policies. They start the process after leaving their jobs, which causes the policy to lapse and the porting opportunity is gone forever. Therefore, it is best to start the porting process 45 to 60 days before you leave your job. Keep your old policy documents and claim history ready and read all the terms and conditions of the new policy carefully.
Is it possible to increase the coverage?
If you want to increase your sum insured (coverage amount) while porting, you can do so, but it requires medical underwriting. The insurance company may conduct medical examinations on you, impose a different waiting period on the increased amount, or charge a higher premium. Continuity is guaranteed only on the old coverage amount (and bonuses).
This process of preserving the benefits of your old policy in the new policy is very useful for you. Therefore, it is important to start this process before leaving your job for your financial security.
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