What is Insurance Portability
Insurance Portability is a procedure to transfer an existing insurance plan to another insurance company or within the same company.
What is Health Insurance Portability
The process by which you can transfer your current health insurance policy to another insurance company of your choice is known as a Health Insurance Portability. Similar to how you can change your telecommunications service provider!
Do not consider this only an insurer shift, though. A Health Insurance Portability is unique in that it allows you to switch to a better plan while also transferring your waiting periods and no claim bonus. This means that you won’t have to start your waiting periods over from scratch or forfeit your cumulative bonus up to that point.
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Reasons of Portability
As you are aware, health insurance is a specialized product with a premium that is relatively higher than other types of insurance, and thus Health Insurance must meet the specific demands of the policy holder in order to be helpful, since no two people are alike. Every policyholder has a unique set of requirements and those requirements changes as he/she grows old. It is quite normal for the policy holder to switch from one health plan to another for variety of reasons. Here are a few of these:
1- Poor Service: Many times, the policyholder does not receive the services at the time of the policy start. It would not be beneficial in this situation to continue with the same insurance provider if those assurance were broken.
2- Unable to step-up sum insured: As one grows older, one may be inclined to age related disease whose treatment could require a significant outflow of cash. Therefore, one can think about increasing the health insurance policy’s maximum sum insured.
3- Poor Claim Settlement History: The claim settlement ratio of the insurer may have decreased since one obtained the health insurance coverage. Therefore, one might feel compelled to switch to an insurance with a higher claim settlement ratio.
4- Lack of transparency: One might not have anticipated that the insurance might impose any unstated conditions that would invalidate the claim whenever one approaches the insurer after the contingency occurs. Such situations can call for switching to a different insurance that provides better transparency.
5- Poor Product Design: One can wind up paying an outrageous premium for a coverage that doesn’t meet their individual demands when they might have obtained the same features from another insurer for a much cheaper price. Additionally, you could have acquired health insurance from a firm that serves a variety of industries, and you might need to switch to a specialist health insurance provider that can meet your needs.