My parents are above 60 years, should they port health insurance after IRDAI reforms or stay with current cover?

I am helping my retired parents review their health insurance, and I came across rising portability trends among senior citizens—from 18% in 2022-23 to 29% in 2024-25. With recent reforms removing entry-age limits and allowing continuity of waiting periods, switching policies seems easier. However, stricter underwriting, higher premiums, and potential exclusions worry me. What factors should seniors prioritize before porting—such as claim settlement ratio, hospital networks, sub-limits, and co-pay clauses?

Advice by Manju Dhake, Senior Vice President – Insurance Advisory Practice, 1 Finance

In the past, senior citizens often continued with the same health insurer—even when the cover wasn’t ideal—because switching meant restarting waiting periods or facing entry-age restrictions. Thanks to recent IRDAI reforms, that’s no longer the case. Older policyholders can now port their health insurance without losing continuity benefits, as insurers must honour waiting periods already served.

That said, the decision to port remains complex for retirees, as stricter underwriting, higher premiums, and potential exclusions still come into play. 

Portability can give senior citizens access to better coverage and service, but it must be weighed carefully. If your parents are relatively healthy and the new policy provides stronger benefits without making premiums unaffordable, porting may be worthwhile. Otherwise, staying with the current insurer may be the safer, more practical choice.   Before making a switch, here are the key factors your parents should prioritise:

1. Medical history and underwriting

This is the most critical consideration. If there are pre-existing conditions or recent health issues, the new insurer may increase premiums, impose sub-limits, or even decline coverage. Always disclose medical history accurately—non-disclosure could lead to claim rejection later.

2. Continuity of waiting periods

The biggest advantage of portability is that waiting periods already served carry forward. Ensure this continuity is clearly reflected in the new policy document.

3. Premiums vs affordability

Senior citizen plans tend to be expensive. Compare not only the coverage but also whether premiums are sustainable in the long run as your parents age further.

4. Hospital network access

A robust cashless network of quality hospitals near home is vital for emergencies. Check if the new insurer’s network includes trusted hospitals.

5. Policy terms and hidden exclusions

Watch for fine print—room rent caps, disease-specific sub-limits, or mandatory co-pay clauses. These can significantly reduce the real value of the cover.

6. Claim settlement and service quality

Look beyond the claim settlement ratio. Review customer experiences on speed, transparency, and grievance redressal. For seniors, smooth claims processing is as important as coverage.

7. Cumulative bonus transfer

If a no-claim bonus has been accumulated, confirm that it transfers to the new policy. Losing it may reduce the overall sum insured.

8. No break in coverage

Portability requests must be initiated at least 45 days before renewal. Keep the existing policy active until the new one is confirmed.

Portability offers senior citizens the opportunity to upgrade health insurance without losing continuity benefits, making it easier to access better coverage and services. However, the decision should be guided by careful evaluation of factors like medical history, premiums, hospital network access, policy terms, claim settlement experience, and cumulative bonuses.

Seniors should weigh the advantages of enhanced benefits against potential higher costs, stricter underwriting, or exclusions. For relatively healthy retirees, switching to a well-suited policy can be beneficial, but if premiums are prohibitive or coverage risks increase, maintaining the current plan may remain the safer, more practical choice.