The importance of a medical insurance policy is unquestionable, and in these times of the Covid pandemic, the importance is even more amplified. However, there are many cases where people buy a medical insurance policy, pay the premium and forget all about it, remembering only if an illness suddenly strikes. Moreover, as in most cases because the illness never strikes, policy holders become complacent and negligent about renewing their medical insurance policy.
Renewing your existing health insurance policy
Timely renewal is very important in health insurance policy because the policy becomes null and void after the date of validity. Insurance providers usually give a grace period during which you can pay your due premium and revive your health insurance policy, but if you fail to do so even during the grace period, then your policy lapses. Under such circumstances, you would be obliged to buy a new medical insurance policy.
You lose old plan benefits if you buy a new plan
When you buy a new policy, you would lose the health insurance benefits of your old policy. And besides, your new policy is unlikely to provide you the same coverage as your old policy, specially when it boils down to covering pre-existing medical conditions, which may have been covered in your old policy. In the case of buying a new policy, you would also forfeit the no-claims bonus, if any, that you were entitled to in your old medical insurance policy.
It has been observed that in many cases, people stop paying their medical insurance policy premium deliberately, under the erroneous impression that nothing is going to happen to their health and that paying premium is a waste of money. But then, one fine day, a deadly illness strikes, and the policy holder is forced to change their mind about renewing their policy. In such a case they will have to pay all the late fee, clear all the dues of the lapsed tenure, and then the insurance provider may consider reviving the policy.
Buying new policy more expensive than renewing old one
Then there is the obvious consideration that it is more economical to renew an existing policy than buying a new one later down the line when the option to renew is no longer operative. Obviously, it is going to work out to be more expensive to buy a new medical insurance policy because all expenses will have to be borne all over again, while in the case of renewing an old policy you just have to pay the required premium.
Keeping all the above points in mind, it becomes clear that renewing an existing medical insurance policy is by far the better decision than letting the policy lapse and buying a new one down the line when the need to do so arises.