Importance of Lifetime Renewability in Health Insurance

Health insurance plans are essential to afford costly medical treatment in a time of need. Even though people have become more conscious of their eating and lifestyle habits, health insurance continues to remain relevant. added to the individual or Luckily, the lifetime renewability feature enables people to avail health insurance benefits throughout their life. Know everything about the lifetime renewability feature in this article.

Read More

Policybazaar exclusive benefits
  • 30 minutes claim support*
  • 50,000 claims approved in last 15 months*
  • Schedule home visit with our advisors
  • Get a plan based on your medical needs

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Back
All health plans cover Covid-19 treatment
  • 1
  • 2
  • 3
  • 4

Who would you like to insure?

  • Previous step
    Continue
    By clicking on “CONTINUE”, you agree to our Privacy Policy and Terms of use
    Previous step
    Continue

      Popular Cities

      Previous step
      Continue
      Previous step
      Continue

      Do you have an existing illness or medical history?

      This helps us find plans that cover your condition and avoid claim rejection

      Get updates on WhatsApp

      What is your existing illness?

      Select all that apply

      Previous step

      When did you recover from Covid-19?

      Some plans are available only after a certain time

      Previous step

      One of the features offered by the health insurance policy is the lifetime renewability to avoid hassle and high premiums. Further in this article, we have discussed in detail the lifetime renewability features in a health insurance policy and how important it is.

      Rising Cost of Healthcare in India

      Based on the study by the National Sample Survey Office  (NSSO), the average hospitalization cost of private hospitalization was about Rs 31,845 (about Rs 27,347 in rural areas and Rs 38,822 in urban areas during the period of July 2017 – June 2018. Whereas, the average cost of hospitalization in public/government hospital was about Rs 4,452 (about Rs 4,290 in rural and Rs 4,837 in urban areas). Both cases indicate a high growth in hospitalization costs.

      Moreover, according to the data collated by the IRDAI on medical insurance claims, reveals a significant rise in the claim amount and severity of illnesses for which the claim is made. These numbers and statistics indicate the increasing importance of a comprehensive health insurance policy and also how important it is to renew health insurance policy online.

      What is Lifetime Renewability?

      As per the IRDAI, health insurance companies must offer a health insurance plan for an entry age up to 65 years. However, most of the private health insurance providers do not have such an age limit, however, the state-owned general insurance companies set the entry age up to 65 years. As per the IRDAI guideline, it is mandatory for all the health insurance companies to offers lifetime renewability. If the policyholder fails to renew the plan, then while making a claim, he/she will lose the existing benefits of the lapsed policy.

      After the issuance of the policy, the policyholder has the right to keep renewing the policy for the lifetime. This feature can also be availed even if the policyholder filed a claim in the previous year. On arbitrary grounds, the insurance company cannot deny the renewal of the policy or the insurer will have to give a solid reason in writing if it denies the renewal of health insurance policy online.

      Why Lifetime Renewability is Important?

       The feature of lifetime renewability is very beneficial in the case of senior citizen mediclaim policy.  With the increase in age, the premium amount of the health insurance plan also increases as the apparent risk is also high and it gets difficult to get sufficient coverage. With the feature of lifetime renewability, the insured can ensure that the policy can be renewed lifelong without any age limit or any other restriction. For senior citizens, the benefit of lifetime renewability takes off the financial pressure in case of any medical emergency. Considering the burgeoning cost of health care, the importance of lifetime renewability has increased even more.

      Besides this, there are other new features added to the health insurance policy, which is worth considering.

      Sub-Limit

      Nowadays, sub-limit in a health insurance policy has become an important feature to take into consideration. The total cost of healthcare during hospitalization generally includes room-rent, doctor’s consultation fees, operation charges, surgery fees, medicine costs, etc. Sub-limit refers to restraining reimbursement under some or each of these co-heads to the pre-defined level. For instance, the room rent reimbursement can be set at 1% of the sum insured. So, irrespective of the total sum insured under the plan, the policyholder will have to pay a specific portion of the cost of treatment unless he/she sticks to the limit. Some of the health insurance policies do not offer sub-limits while other insurance providers offer the option of sub-limit to reduce the payable premium at the time of purchasing the policy.

      No Medical Check-up  Up to the Age of 45 years

      Before issuing the policy, the insurers evaluate the health of the policy applicant through the medical check-up and according to the disclosures made in the application form. For the policy buyers below the age of 45 years, most of the insurance company does not ask to undergo any medical test unless the insurance buyer has a critical medical history. However, it is very important for the insurance buyers to make all the important medical disclosure including the past or existing medical treatment if any.  To ease the process of claim settlement the policyholder can voluntarily undergo the medical test and submit the report to the insurer.

      Wrapping it up!

      New-age fetaures such as lifetime renewability in health insurance have make the product worth buying even more. However, while zeroing in on a health insurance plan, the insurance buyer should preferably start by comparing the plans from renowned insurers. Go through the details of inclusions and exclusions offered by the basic health insurance policy. Make sure that to consider all the other features offered by the policy and not make a decision based solely on the premium amount of the policy. By keeping the requirements of the health insurance coverage in mind make an informed decision.

       

      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

      Health insurance articles

      Recent Articles
      Popular Articles
      Monkeypox: Dos and Don’ts of the Disease That You Should Know

      15 Sep 2022

      Monkeypox has slowly and steadily spread to more than 85 countries...
      Read more
      Why is It Important to Disclose Pre-existing Diseases to Your Insurer?

      06 Sep 2022

      As we grow old, the chances of developing a disease or a medical...
      Read more
      Benefits of Multi-Year Health Insurance Plans

      25 Aug 2022

      Ever since COVID-19 entered our lives, health insurance has come...
      Read more
      Does Health Insurance Cover Monkeypox?

      25 Jul 2022

      Monkeypox is the latest disease to make its way to India while we...
      Read more
      List of Diseases Covered by Bajaj Allianz Health Insurance Plans

      05 Jul 2022

      Barely any person has remained unaffected due to rising health...
      Read more
      PMJAY Scheme: Ayushman Bharat Yojana Eligibility & Registration Online
      Prime Minister Shri Narendra Modi announced the launch of (PMJAY) Ayushman Bharat Yojana in his Independence...
      Read more
      Best Health Insurance Plans in India 2022
      Finding the best health insurance plan from so many different health insurance companies can get confusing for many...
      Read more
      How to Apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)?
      Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India to offer universal...
      Read more
      Best Maternity Insurance Plans
      Maternity insurance offers comprehensive coverage for medical expenses incurred during pregnancy, including the cost...
      Read more
      Best Health Insurance Plans for Senior Citizens in 2022
      Senior citizens are the most prone to diseases. Considering the medical inflation in India, buying health insurance...
      Read more

      top
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL