Health is unpredictable—and so are medical expenses—which makes having medical insurance a necessity in India. However, simply owning a policy isn’t enough. Just as we regularly upgrade our gadgets or vehicles, it's equally important to review your health insurance annually. With healthcare costs rising, medical needs evolving, and insurers frequently updating their offerings, an annual policy review ensures your cover continues to meet your requirements.
Here’s why reviewing your health insurance policy every year is a wise decision:
1. Medical Inflation Is Real
Healthcare costs in India are escalating rapidly. A single hospitalisation can cost anywhere between ₹50,000 and ₹5 lakh, depending on the treatment and location. If you purchased your medical insurance policy several years ago, the sum insured may no longer be adequate. Reviewing your coverage each year allows you to adjust the insured amount to keep pace with inflation.
2. Your Health Needs Change
The policy that suited you five years ago may no longer meet your current medical needs. With age, medical issues become more common, and your insurance must evolve accordingly.
If you now require regular medical attention, your existing plan should reflect those requirements. Similarly, if you're supporting ageing parents, it may be time to consider senior citizen health insurance plans that offer better cover for age-related conditions and frequent hospital visits.
3. New Policies May Offer Better Benefits
Insurers often introduce enhanced or more inclusive policies. By reviewing your plan annually, you can check whether your policy offers benefits such as:
· Outpatient (OPD) cover – for doctor consultations and diagnostic tests
· Critical illness cover – a lump sum payout for major illnesses like cancer or heart disease
· Mental health support – coverage for counselling and psychiatric treatments
· Maternity and newborn care – covering delivery-related expenses and neonatal care
Switching to an updated policy can provide better financial protection and more holistic healthcare support.
4. Changes in Family Structure
Major life events—such as marriage, childbirth, or taking on caregiving responsibilities for elderly parents—should prompt a health insurance review. A new baby may necessitate maternity and child cover, while ageing parents might require senior citizen health insurance with specific benefits suited to their age group.
5. Policy Terms and Conditions Can Change
Insurance companies periodically revise their policy terms, which may include changes in premiums, coverage, exclusions or waiting periods. Regular reviews help you stay informed about these updates and avoid surprises at the time of claim.
6. No Claim Bonus (NCB) and Renewal Benefits
Many health insurance providers offer a No Claim Bonus (NCB) that increases your sum insured for each claim-free year. However, NCB terms differ across insurers. Some increase the sum insured by 10% annually, while others offer cumulative benefits up to 50%. Reviewing your policy helps you understand your current NCB status and whether another provider offers a better structure.
7. Better Add-On Options
A basic plan may not cover all medical expenses. During your review, consider adding useful riders such as:
· Critical illness rider
· Personal accident cover
· Daily hospital cash benefit
· Dental and OPD cover
These add-ons can significantly enhance your protection without drastically increasing your premium.
8. Tax Benefits Under Section 80D
Premiums paid towards health insurance qualify for deductions under Section 80D of the Income Tax Act. Reviewing your policy can help optimise these deductions. For instance, insuring senior citizen parents allows you to claim a higher deduction of up to ₹50,000.
9. Ensure Adequate Cashless Network Coverage
Hospital networks change over time. It's important to verify annually whether your preferred hospitals are still part of your insurer’s cashless network. If you've moved cities, this becomes even more essential to ensure uninterrupted and convenient treatment access.
10. Avoid Claim Rejections
Claims are often rejected due to outdated information—such as incorrect nominee details or undeclared medical conditions. Reviewing your policy annually helps ensure your records are up to date, reducing the chances of claim denial during emergencies.
Conclusion
A medical insurance policy is more than just an annual payment—it’s your safety net against financial distress during a health crisis. Reviewing it every year ensures it aligns with your changing medical needs, family circumstances and lifestyle.
Whether it’s increasing your coverage, opting for more comprehensive benefits, or transitioning your parents to Senior citizen health insurance, an annual review gives you peace of mind and helps you stay financially prepared for the future.