Switching is the option provided to the insured by the insurer wherein the insured is entitled to move to a different policy or transfer from one fund to another within the same policy.

Definition: Switching is the option provided to the insured by the insurer wherein the insured is entitled to move to a different policy or transfer from one fund to another within the same policy. In switching, a certain stipulated number of switches can be made free of charges, but post that, switching charges are levied. For switching to take place, the insured has to intimate the insurer in advance.

Description: Under switching, the insured can switch from one insurance policy to another. After the advent of health portability in India, the insured is entitled to switch from one health insurance policy to another and his coverage is not impacted. Similarly, under life insurance policy, the insured can switch from one fund to another under the same life insurance policy. For instance, the insured can switch from aggressive plan to conservative plan and so on.