scorecardresearchWhat does the term portability mean in an insurance policy? MintGenie explains

What does the term portability mean in an insurance policy? MintGenie explains

Updated: 19 Jan 2023, 08:05 AM IST
TL;DR.
Insurance portability allows individuals to switch insurers without losing the benefits of their existing policy. It is a convenient option for those seeking better coverage, lower pricing, or better services. However, there may be drawbacks and additional charges involved.
Insurance portability is a great feature that allows policyholders to switch between insurers without having to start all over again.

Insurance portability is a great feature that allows policyholders to switch between insurers without having to start all over again.

A person may experience financial and emotional drops as a result of a medical emergency. If you don't have the right health insurance coverage, it might quickly wipe out your funds.

If you think that your current health insurance policy is not the right approach for you and wish to obtain coverage from a different insurance company or under a new health insurance policy, then insurance portability can be a good option for you.

The term "portability" is generally used to refer to the ability to change telecommunications service providers. However, only a small percentage of people are aware that health insurance coverage also has portability benefits.

Let us understand the concept of insurance portability in detail.

What is insurance portability?

Insurance portability is a feature that allows an insurance policyholder to switch from one insurer to another without losing the benefits accrued under the existing policy. It is a process by which an individual can transfer his/her health insurance policy from one insurance company to another, without any loss of benefits like premium paid and the accumulated no-claim bonus.

There might be instances when you are seeking greater coverage, lower pricing, or better services. A transferable health insurance coverage allows you to avoid being tied to the insurer from whom you originally purchased the policy. You can move to another health insurance provider through portability if you find one that provides the benefits you desire.

The portability of health insurance is beneficial for policyholders as it avoids the hassle of having to buy a new policy from scratch every time they switch insurers. It also eliminates the need to start all over again with the waiting period or other restrictions associated with a new policy.

However, there are certain drawbacks to insurance portability as well. It may take some time for the new insurer to evaluate the existing policy and accept the request for portability. In case of rejection, the policyholder has no option but to buy a new policy. There may be additional charges for the portability process depending on the insurer.

Additionally, purchasing insurance without taking into account your needs, lifestyle, and coverage might have a significant influence on the claim amount. Therefore, it's crucial to take into account all of the criteria while porting your health insurance coverage.

Hence, insurance portability is a great feature that allows policyholders to switch between insurers without having to start all over again. It is a convenient way to switch to a better policy without sacrificing the benefits of the existing policy.

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First Published: 19 Jan 2023, 08:05 AM IST