Renewing Your Health Insurance Insurance

Most health insurance plans available in Hong Kong, and elsewhere in the world, form an annual contract. 

There are some exceptions to this rule, with Travel Health Insurance products that are tied to the length of a specific journey being the obvious example, but on the whole most policies will be in force and provide you coverage for 365 days at a time.

When the end of the health insurance policy (or contract) has been reached, in many cases you will be given the option to renew your coverage and continue receiving insurance protection under the plan. However, a renewal forms a new agreement – a separate contract – to the policy you were previously covered under, and can come with new terms, conditions, or financial responsibilities that may catch many policyholders unaware.

Understanding how to manage your renewal process for some commonly encountered types of Hong Kong and International health insurance products can ensure a seamless transition from one policy year to the next, and give you the coverage you need when you need it.

Health Insurance Age Limits

If your Hong Kong Health Insurance or International Medical Insurance plan is reaching the end of its annual coverage it is important that you are properly prepared to manage the renewal of your policy.

At this stage, it is imperative to check that you are still able to renew the plan, as some plans have a cap on the coverage and individual over a certain age (normally 65 to 69 years old, depending on the insurance company) will not be allowed to renew.

This is a particular issue with domestic Health and Medical Insurance options provided by Hong Kong Insurance Companies. In many cases, International Private Medical Insurance plans will guarantee your ability to renew the policy no matter how old you may be as long as you continue to pay your premium.

Managing a Renewal Timeline

If you are able to renew your plan then the next thing to do is plan out your renewal timeline.

Depending on the Health Insurance policy you purchased you will typically have between 30 and 60 days from the expiration of the policy to manage the new year’s plan. It is important to use this time to identify your needs and any new changes to the policy created by the insurance company that may impact you.

Further to this, it is important to understand that your life may have changed over the previous year and that you may have new coverage requirements – family changes, new health diagnoses, relocations, or even new hobbies can all necessitate changes in your health insurance protection. During the renewal period of your policy, it is critical that you identify any gaps in your coverage and understand how those gaps may impact you.

Understanding Policy Changes and Exploring Alternatives

At the renewal of your medical insurance policy the insurer may change terms of the coverage – things like limits, and even benefits can get added or removed. You are under no obligation to renew your policy if you are unhappy with the new contract. However, it should be noted that there may be additional considerations if you attempt to obtain any alternative medical insurance especially if you have any pre-existing (to the new policy) medical conditions.

Pre-Existing Conditions will likely be excluded from coverage under any new health insurance policy. There are ways to have pre-existing medical conditions covered, but these will likely require a waiting period or for the policyholder to join a group health insurance plan with a Medical History Disregarded benefit. Further to this, any waiting periods you may have completed on the existing medical insurance policy will likely need to be restarted with any subsequent coverage – which can severely impact coverage benefits that fall under the Maternity umbrella, for example.

Some changes implemented on the policy at renewal may benefit you – your limits may be increased, or your benefits expanded. This is why it is important to use your renewal window to fully understand the changes on your coverage and how those changes will impact you.

Health Insurance Renewal Premiums

When it comes to premiums and your health insurance renewal, in most cases you can expect an increase in the cost of your coverage when renewing the plan.

In simple terms this is because as people age, they become more likely to require medical care. This represents an increased risk under the insurance and, consequently, means that older people will pay more for the same coverage received by younger people. In addition to this there is also the consideration of overall medical inflation – the actual costs associated with receiving healthcare continue to go up year on year. Together, growing older and requiring more medical treatment in conjunction with medical inflation, mean that you can expect to pay more for your health insurance each year.

This cost increase can be managed with the inclusion of deductibles and excesses on your health insurance policy, or through restricting your geographical area of protection if you are on an international private medical insurance policy. But a general rule is that most health insurance solutions will increase in cost by about 10 percent every year.

Assistance with Renewing Health Insurance

Renewing your health insurance coverage is a delicate dance where you will need to balance your requirements against coverage that you are receiving, and costs that increase by roughly 10 percent per year. Giving yourself adequate time to navigate all these potential obstacles is critical, as well as understanding what your objectives are with continuing coverage. You usually have the option to decrease your protection, or add new deductible options into your plan, which can give you valuable assistance in balancing the terms offered by the insurance company and your needs.

At CCW Global expert insurance brokers help our clients with every aspect of their renewal. With a dedicated Renewals Department, we will inform you in advance of any pertinent changes to your coverage and what those changes mean for you. Our independent insurance advisors will then assist you in navigating your needs against the offer of the insurance company, and if needed can help you to find alternative coverage solutions.

For more information about how we may be able to assist with your health insurance renewal, or to learn more about the Hong Kong health insurance products we work with, please Contact Us Today.