Almost 100% Hike In Premium - Should I Renew My Policy?
Hi... currently I have an individual health insurance policy for my family of 5 members, myself (49yrs), wife (42yrs), son (15yrs), daughter (19yrs) & mother (80yrs), with Royal Sundaram, I am holding this policy with Royal Sundaram for the past 17 years or so. My policy has been upgraded few times based on notice of withdrawal of my old policy. Even last year I got an intimation from Royal Sundaram that my old policy is withdrawn and provided me couple of new policy options. I selected "Lifeline - Classic Health Policy" (2lacs sum assured + 50k no claim bonus for each individual) and my premium was fixed accordingly. I paid a total premium cost was around Rs.58729/- last year for this policy last year.
This year again I received an advance intimation for Lifeline policy revision stating that due to IRDAI guidelines to standardize exclusions under health insurance products, they have revised my total premium to around Rs.97300/- for the same sum insured for each individual. I feel that increase in premium is very high. Also, there is no claim last year from any of my family member. Is the hike in accoradance with IRDAI guidelines? Should I go for renewal or consider portability option? Please let me know your thoughts on this.
IRDAI doesn't place any pricing restrictions on Insurers. They are free to price their products as per their own risk assessment.
Your Insurance doesn't look optimum to me. I would advise as follows -
1) Port yourself, your wife, son and daughter out into a family floater policy of Sum Insured 10 to 15 lacs.
2) Take a super top-up for yourself & your wife of Sum Insured 20 to 25 lacs with deductible of 10/15 lacs (as per your base policy).
3) Keep your mother with Royal Sundaram & see if you can ask RS to enhance her Sum Insured to at least 5 lacs. In addition, also explore a super top up for your mother & get her a total cover of around 15 to 20 lacs (base + top-up).
P.S: - Porting is subject to acceptance by the new Insurer. Do not discontinue coverage for any family member until you successfully port her/him into a new health insurance policy.
Hope this helps.