Step-by-Step Guide to Switching Health Insurance Without Losing Benefits
Health insurance is one of the most important parts of your personal financial plan. A medical emergency can strike without warning — and when it does, it has the power to wipe out your years of savings in just a few days.
That’s where health insurance steps in — to protect you, your family, and your finances.
But here’s the reality:
You may have bought a health insurance policy thinking you're covered, only to discover later that it's filled with hidden terms like co-payments, deductibles, sub-limits, long waiting periods, or room rent capping. These clauses can force you to pay a large portion of your hospital bills out of pocket — right when you need the insurance the most.
Maybe you bought a cheaper plan without realizing what was excluded. Or maybe a persuasive agent convinced you without clearly explaining the fine print. And now, you're worried whether your policy will truly support you during a medical crisis.
The good news is: you’re not stuck with a bad policy forever.
If your current health insurance comes with limiting clauses that could cost you later, you can switch to a better one — at the time of renewal. And if you're unsure about what’s hidden in your policy, don’t worry — our team can review it for you, absolutely free.
In this blog post, you’ll learn when and how to switch your health insurance policy, what to watch out for, and how to make sure you're truly protected when it matters most.
Understand the Fine Print: Health Insurance Jargons That Can Hurt Your Claim
Before you think about switching your health insurance, it’s important to understand some of the common clauses that may limit your claim amount. These terms often look harmless in the policy document — but can leave you paying a big chunk of your hospital bill from your own pocket.
Let’s break them down in simple language:
1. Co-payment
Co-pay means you agree to pay a fixed percentage of your hospital bill, and the insurer pays the rest.
Example:
If your policy has a 20% co-pay, and your hospital bill is ₹4 lakh, then:
- The insurer will pay 80% = ₹3.2 lakh
- You will pay 20% = ₹80,000 out of your own pocket
Sometimes policies with co-pay clauses seem cheaper at first — but during an emergency, they can become expensive very quickly.
2. Deductible
A deductible is a fixed amount that you must pay first before your insurance starts covering the remaining amount.
Example:
If your policy has a ₹40,000 deductible, and your hospital bill is ₹4 lakh, you’ll first have to pay ₹40,000 yourself. Only then will your insurer cover the rest (₹3.6 lakh in this case).
Some policies include deductibles to reduce premiums — but make sure you’re financially prepared for that upfront cost.
3. Waiting Periods
Most health insurance plans have waiting periods for pre-existing conditions and certain illnesses like hernia, kidney stones, or joint replacements.
These waiting periods could be:
- 2 years
- 3 years
- Or even 4 years
During this time, those specific illnesses will not be covered by your insurer.
What you can do:
- Buy health insurance early, before you develop any conditions
- Choose a policy with minimal or zero waiting periods
- Look for plans with riders that reduce or eliminate the waiting period
4. Sub-limits and Room Rent Capping
Many policies come with restrictions on how much you can claim for specific expenses. These are called sub-limits.
One common sub-limit is room rent capping.
Example:
If your policy allows ₹5,000 per day room rent, but you choose a room that costs ₹7,000 per day for 5 days:
- Hospital bill for room: ₹7,000 x 5 = ₹35,000
- Insurer will pay: ₹5,000 x 5 = ₹25,000
- You’ll pay the balance ₹10,000 from your pocket
Also, if you exceed the room rent cap, it could affect your entire claim — because hospitals may charge higher rates for tests, doctor visits, and procedures in higher-category rooms.
Sub-limits may also apply to treatments like cataract, knee replacement, or maternity. For example, your policy may only cover ₹30,000 for cataract surgery — even if your sum insured is much higher.
5. Coverage Inadequacy: Is Your Health Insurance Still Enough?
With medical inflation rising year after year, the cost of healthcare is skyrocketing. A surgery that once cost ₹3 lakh a few years ago can now easily set you back ₹10 lakh or more.
So while your ₹5 lakh health insurance may have seemed sufficient in the past, it might fall short during a real medical emergency today.
If you’re feeling unsure about whether your current coverage can truly protect you, it’s a good reason to consider switching your policy and upgrading to a higher sum insured — one that matches today’s medical costs and offers peace of mind for the future.
These clauses may not seem important at the time of buying the policy — but they matter a lot during claim settlement.
Want to Fix Your Health Insurance? Here's How to Switch It the Right Way
So, you’ve realized your current health insurance policy has some serious drawbacks — maybe it includes co-payments, sub-limits, or long waiting periods. The good news is: you can fix this without starting over.
Thanks to the Insurance Regulatory and Development Authority of India (IRDAI), you have the right to port your health insurance policy.
This means you can switch to a better plan at the time of renewal — one that offers wider coverage, fewer restrictions, and better benefits — without losing the advantages you've already earned in your existing policy.
What Benefits Do You Keep When You Port Your Policy?
When you port your policy, you don't lose all the progress you've made with your current insurer. Some key benefits are carried forward to your new plan:
1. Waiting Period Credit on Pre-Existing Conditions (PEDs)
If you’ve already completed 2 years with your current policy, and your new insurer requires a 2-year waiting period for PEDs, the waiting period is waived off — you won’t need to serve it again.
2. No Claim Bonus (NCB)
Your accumulated NCB (No Claim Bonus) also gets transferred to the new insurer. This ensures you continue to enjoy a higher sum insured without interruption.
What Happens If You Increase Your Coverage While Porting?
If you're porting your policy and increasing your sum insured at the same time, be aware of one key point:
Let’s say:
- Your current coverage is ₹5 lakh
- You want to increase it to ₹10 lakh with the new insurer
In this case:
- The first ₹5 lakh will carry over all your benefits, including the waiting period credit
- The additional ₹5 lakh may come with a fresh waiting period, usually 2 to 4 years, depending on the insurer’s terms
So while you can upgrade, make sure to understand how the extra coverage will be treated.
Step-by-Step: How to Port Your Health Insurance Policy
Switching your health insurance policy may sound complicated, but the process is actually quite simple — as long as you follow the right steps and timelines.
Here’s a step-by-step guide to help you port your policy smoothly and without losing any of your benefits:
Step 1: Start the Process at Least 45 Days Before Renewal
You must initiate the porting request at least 45 days before your current policy’s renewal date, but not earlier than 60 days. This gives the new insurer enough time to process your application and assess your risk profile.
⏳ Missing this window might result in denial of the portability request — so mark your calendar!
Step 2: Choose the Right Insurer and Plan
Do your research or consult with a financial advisor to find a policy that:
- Offers better coverage
- Has minimal sub-limits or co-payments
- Comes with a lower or zero waiting period
- Matches your budget and health needs
Don’t just look for lower premiums — focus on value and long-term protection.
Step 3: Submit a Portability Request
Reach out to the new insurer and request a portability form. Along with this, you’ll need to submit:
- Existing policy documents
- Renewal notice or latest premium receipt
- Identity and address proof
- Medical history (if required)
- Any other details requested by the new insurer
The new insurer will initiate the process via the IRDAI's health insurance portability portal.
Step 4: Wait for Underwriting Approval
After receiving your details, the new insurer will evaluate:
- Your existing coverage
- Your claim history
- Any pre-existing health conditions
- Medical reports (in some cases)
They may request a fresh medical check-up, depending on your age and health profile.
📝 Note: The new insurer has to respond within 15 days — else they are obliged to accept the portability request by default.
Step 5: Policy Issuance and Continuity of Benefits
Once approved:
- Your new policy will be issued with continuity benefits
- You’ll receive a fresh policy document from the new insurer
- All accumulated benefits like waiting period credits and NCB will be carried forward
You’re now officially covered under your new, improved plan!
💡 Pro Tip:
Always review your new policy document thoroughly. Confirm that:
- Your old policy duration has been considered
- Your NCB has been carried over
- Any sub-limits or new clauses are clearly understood
Final Takeaway: Don't Let the Wrong Policy Hurt You When It Matters Most
Health insurance is more than just a checkbox in your financial plan — it's your first line of defense against rising medical costs and unexpected emergencies.
If your current policy has hidden clauses like co-payment, high deductibles, room rent capping, or long waiting periods, you don’t have to stay stuck with it. Thanks to IRDAI’s portability benefit, you now have the freedom to switch to a better plan — without losing the benefits you've already earned.
✅ You keep your waiting period credit
✅ Your No Claim Bonus continues
✅ You get the chance to upgrade your coverage with fewer restrictions
But here’s the key: you must act before your policy renews. Start the porting process at least 45 days before your renewal date.
💬 Need Help Understanding Your Policy?
You may already have health insurance — but do you know what's actually covered?
If you're unsure or confused about the fine print, you're not alone. Many people don’t realize the limitations until it’s too late.
📩 Good news: We're offering a FREE Health Insurance Policy Review.
Drop us a message, and we’ll help you:
- Understand your current coverage
- Spot risky clauses
- Recommend better options tailored to your needs
💡 Remember:
"Your investment might compound — but so will medical costs and inflation. Make sure your health insurance keeps pace."
💬 Frequently Asked Questions (FAQs)
1. What is health insurance portability?
Health insurance portability allows you to switch from one insurance provider to another at the time of policy renewal — without losing benefits like waiting periods or No Claim Bonus (NCB).
2. Can you port your policy anytime during the year?
No. You can only port your health insurance at the time of renewal, and you must initiate the request at least 45 days before the renewal date.
3. Will you lose your waiting period benefits if you switch insurers?
No. If you’ve already completed part or all of your waiting period with your current insurer, that time is credited to your new policy, provided you port correctly.
4. What happens to your No Claim Bonus (NCB) when you port?
Your NCB is carried forward to the new insurer and reflected as an enhanced sum insured in your new policy — so you don’t lose the reward for staying healthy.
5. Can you increase your coverage while porting your health insurance?
Yes, you can. But the additional coverage may come with a fresh waiting period, while your existing coverage retains its benefits.
6. Are there any risks in porting your policy?
If you don’t meet the 45-day timeline, or if you fail to disclose medical history properly, your porting request could be rejected. Always be accurate and apply in time.
7. Will the new insurer accept your port request automatically?
Not always. The new insurer may evaluate your medical history, claims record, and current policy details. If everything checks out, your request is usually accepted.
8. Should you consult a professional before porting your policy?
Yes! Understanding the fine print can be tricky. A financial advisor or insurance expert can help you compare plans, read clauses, and choose a policy that truly protects you.
9. What are some common hidden clauses to watch out for in your policy?
Watch for terms like:
- Co-payment
- Deductibles
- Sub-limits on treatments
- Room rent capping
- Long waiting periods
These can lead to out-of-pocket expenses even if you're insured.
10. How can you request a free insurance policy review?
Simple! Just drop a message to our team. We’ll review your current policy, explain the fine print, and help you decide whether a switch is the right move — at no cost to you.
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