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Info regarding health insurance migration from one company to another

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26 Jun, 2021 by  Sankhadeep Mazumder

My parents aged 52 and 57 are covered under Oriental Happy Family Floater policy. They have been Oriental policyholders for the last 20 years without a break. We want to migrate to better policies such as Optima Restore because the benefits are quite limited with the existing policy.


I want to ask if (a) migrating to a different policy with higher sum insured will result in different waiting periods getting reimposed (b) revealing all pre existing conditions at the time of taking new policy will result in additional premium over the base premium of new policy because of medical underwriting.


Lastly, I want to ask if discontinuing the existing policy which has served us well by migrating to a new policy at this age will be better than just adding the new policy and continuing the existing one i.e. both the policies parallely?

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Health Insurance
Parents-Health-Insurance
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Hello Sankhadeep jee,


Please find below answers to your queries:



(a) migrating to a different policy with higher sum insured will result in different waiting periods getting reimposed - Portability form one insurance company to other gives you the benefit of continuity and No claim bonuses if any are also transferred. For example: If the existing policy is for 5 lacs and you want to buy the new policy with 10 lacs, in that case waiting periods/loading will be levied on only an incremental 5 lacs sum assured, For the first 5 lacs , old sum assured will cover everything from day 1.


b) revealing all pre existing conditions at the time of taking new policy will result in an additional premium over the base premium of new policy because of medical underwriting. Yes, all PEDs need to be disclosed and premiums may be loaded as per the new company's underwriting guidelines.



Lastly, I want to ask if discontinuing the existing policy which has served us well by migrating to a new policy at this age will be better than just adding the new policy and continuing the existing one i.e. both the policies parallely?

This is a personal choice and depends on the health condition of parents as well. If they have some major medical history, then portability is not suggested and if they are on lifestyle medicines, then you can consider porting it completely as you rightly said, benefits are limited in your existing policy. Running both parallelly I feel is not required if you are going for a higher sum assured in the new policy.



Also, do the portability procedure well in time before the due date of your existing policy.



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