In recent years, the features and structure of health insurance policies have improved and become more extensive. Several new features have been added to the individual or family health insurance plan to meet the diverse needs of the consumers. Many people nowadays are adopting a healthy lifestyle and supplementing it with a wellness programe. This does not, however, eliminate the possibility of being admitted to the hospital owing to a medical emergency. The importance of having the correct health insurance has grown as the expense of medical treatment has skyrocketed.
One of the numerous benefits of the health insurance coverage is the opportunity to renew it for the rest of your life, avoiding fuss and hefty costs. We've gone through the lifetime renewability features in a health insurance policy in detail and how crucial they are in this article.
Importance of Lifetime Renewability in Health Insurance
People become more susceptible to a variety of age-related ailments as they get older, and the cost of health insurance policies rises with the years. Most private insurance firms do not provide medical coverage after a certain age, but with this lifelong renewability option, the insured can continue to benefit from the policy throughout their lives, regardless of their age.
This alternative can be extremely beneficial for senior citizens because they do not have to put any financial strain on their caregivers. In addition, given the rising expense of health care, the need of health insurance that can be renewed for a lifetime cannot be overstated.
What Can You Expect From Health Insurance's Lifetime Renewability Clause?
Previously, the health insurance's renewability was determined by a number of factors, including previous year's claims. When the policies were renewed, the insurance firms were compelled to maintain a claim-based loading. If the insured made a health claim, this resulted in a higher following premium. This technique increased the cost of policies and drove insurers to forego purchasing adequate insurance coverage.
However, now that the Insurance Regulatory Development Authority of India (IRDAI) has made assured renewability for health insurance policies mandatory, here's what we may expect as a result of this decision.
Policyholders of health insurance policies will now be able to renew their coverage for the rest of their lives.
There are no longer any age restrictions, and policyholders are not required to submit a new medical statement at each renewal.
Regardless of how many healthcare claims they made in the preceding policy year, policyholders can easily renew their coverage.
Even at the age of 65, new policyholders will be able to purchase a new health insurance plan.
Their health insurance policy is renewed every year for the rest of their lives.
Benefits of the Lifetime Renewability in Life Insurance
Inclusion of the lifetime renewability clause in life insurance brings about a lot of benefits for health insurance policy seekers.
It has removed the age restriction to renew their healthcare policy.
It helps senior citizens to buy health insurance without any hassle and thus aged people will not be denied health cover.
The minimum entry age for health insurance is 3 to 5 years and maximum entry age is 65 years and the maximum age to renew the policy is its lifetime.
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