In this article, we will discuss the portability concept of health insurance and the Co-Pay facility in health insurance. Should individuals port health insurance or not, should they opt for a Co-Pay in health insurance, what is the difference between portability and migration? So, Let’s get started!
What is Portability in Health Insurance?
- Portability refers to the system of shifting from one health insurance policy to another insurance policy or plan without losing the benefits one has accumulated.
- The facility is applicable on almost all of the Indemnity policies of health insurance.
- The portability of the health insurance is allowed 45 days before the date of renewal of the existing health insurance policy. One needs to follow the following process
- Give an application letter to the existing health insurance company regarding the request for a shift in the insurance.
- Specify the company in which a person wants to shift the policy.
Benefits of Portability:
- If a person is not opting for the portability of the health insurance policy and chooses a new health insurance policy, then he/she will lose all the benefits accumulated in the earlier policy.
- A person needs to not wait for the pre-disease period to get over for any existing disease, the new insurance company or the new plan will honor the pre-disease period served by the individual in the earlier plans. The same benefit is not applicable in the case of opting for a fresh policy.
Portability Vs. Migration in Health Insurance:
- Portability in health insurance means shifting insurance policies from one company to another company. While Migration of health insurance policy refers to switching between different plans under the same insurance company plans.
- In the case of portability, an individual needs to give application 45 days before the date of renewal for portability of health insurance policy, while the period is 30 days in case of migration of health insurance policy.
- There are no charges involved in any case-portability or migration.
Should You Choose Health Insurance with a Co-Pay?
- A co-Pay facility is an arrangement where the percentage of the claim amount which the policyholder is required to pay from their end and the rest is borne by the insurance company in case of a health insurance claim.
- The Co-Pay facility is available while selecting the insurance policy. Moreover, only a 10%-20% Co-Pay facility is only available initially.
- Benefits of Co-Pay:
- Reduce premium amount as health insurance also borns the insurance amount.
- Best suitable in the case of health insurance policies for senior citizens
- Types of Co-Pay
- Mandatory Co-Payment: Specially available in the case of health insurance of senior citizens scheme
- Voluntary Co-Payment: The Co-Payment facility is provided as an option for the insured.
- Zonal Co-Payment: In specific regions, there are high healthcare costs and hence the insurance companies provide the health insurance policies with zonal co-payment.
Deductible Vs. Co-Pay:
- Co-Pay is the facility where the person taking a health insurance policy will bear the insurance amount of up to the specified limit say 10% in case of an event. While Deductible is the facility where the insured (individual) needs to initially pay the insurance amount up to a certain limit, and post that limit, the insurance company will bear all the cost
What Should Investors Do:
An individual should opt for the portability or migration of the health insurance policy in case the individual feels stuck or does not get the expected benefit from the existing health insurance policy. Also one needs to remember that upon successful completion of portability/migration of health insurance policies, he/she needs to adhere to the terms & conditions of the new policy. Also, Co-Pay is a widely used facility in foreign countries and largely a new concept in India. The Co-Pay facility provides an individual the benefit of cost-saving i.e., via reducing the premium amount. Hence, read the terms and conditions properly before selecting the new insurance policy.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.