Simply click the edit option next to the sum insured of your health insurance policy when renewing your policy to increase the coverage amount. Keep in mind that if you choose a bigger sum covered, your premium will rise as well.
Can we increase mediclaim policy?
The majority of us are concerned about our health. Medication and hospitalization play an important part in protecting a family’s health, from elderly parents to newborn children. While age-related illnesses are almost unavoidable, today’s youth are not immune to health dangers, particularly lifestyle-related illnesses. If you aren’t prepared, rising medical care costs and rising drug prices can deplete your savings.
A health insurance policy serves as a safeguard in the event that you or a member of your family needs to be hospitalized. Individual plans and Family Floaters are the two basic types of regular health insurance policies. Individual health insurance is a type of insurance that is tailored to the needs of individuals. A Family Floater plan, on the other hand, is a HealthInsurance policy that covers the entire family and allows any family member to use the limit (insurance amount or sum assured). With the unpredictability surrounding medical crises and escalating healthcare expenditures, going without health insurance could be dangerous.
Perhaps you and your family have been covered by health insurance for a number of years. Because you have not had any medical emergencies, your original Sum Insured (basic sum insured plus cumulative bonus) may have increased over time. Great! However, do you believe your existing medical coverage is adequate in light of escalating medical expenditures and expensive new forms of treatment?
A bypass surgery at a reputable facility nowadays can cost upwards of Rs 3 lakh. Most hospital trips aren’t planned ahead of time, and an unexpected medical emergency can run you back a few lakh rupees all at once, leaving you to wonder if your health insurance policy has kept up with medical inflation!
When shopping for a health plan online, keep in mind that medical inflation in India is expected to be over 15% each year. When inflation is taken into account, a double layer of protection is required to protect against medical emergencies. Medical care is also becoming less invasive and more expensive as a result of new technologies. Obviously, the cost of super-specialty equipment and robotics is passed on to the patients.
If you believe your existing Sum Insured will not be enough to cover escalating healthcare costs, you have a few options. The first alternative is to get another Health Insurance policy or boost the Sum Insured under your current policy to a sufficient level. Because of your advanced age and general inflation, a new health plan with a similar Sum Insured will almost certainly cost you more than your previous coverage. To obtain the new coverage, you may be needed to pass a medical checkup.
A Top-Up plan is a better option. A top-up plan is intended to enhance your primary health insurance coverage for a low monthly fee. However, there is an amount known as the “threshold level,” which is also known as the “deductible” amount. This is the threshold at which the Top-Up can be used to cover expenses. A health insurance policy’s deductible is a cost-sharing requirement. It’s the maximum amount for which a hospitalization claim can be reimbursed. A standard Health Insurance policy reimburses hospital expenditures up to the insured amount, whereas a Top-Up plan pays costs after the deductible has been met. Because of the deductibles, top-up plans are less expensive. The lower the deductible, the less expensive the coverage. Under addition, medical check-ups are not required in Top-Up insurance until the age of 55. This is normally 45 years in regular health plans.
For example, if a person has Rs 3 lakh in basic medical insurance and buys a Rs 5 lakh Top-Up plan with a Rs 3 lakh deductible, his total sum insured is Rs 8 lakh. If the insured is involved in an accident and is hospitalized, his basic insurance will cover the claim value of Rs 3 lakh. The additional money will be reimbursed from the Top-Up plan if the claim amount exceeds Rs 3 lakh. The threshold level in this scenario is Rs 3 lakh, which is the same as the base mediclaim policy’s coverage. Simply put, your basic coverage will pay up to the Sum Insured maximum if you are hospitalized. The top-up, on the other hand, will not begin until the threshold limit has been reached, such as Rs 3 lakh. It will cover the claim amount in addition to that.
When you want extra from your Health Insurance policy, you can turn to HDFC ERGO’s Health Suraksha Top-Up Plus. HDFC Top-Up Plus is a supplement to your existing health insurance policy that provides coverage for a higher Sum Insured at a cheaper rate. After the policy’s deductible has been met, coverage under this plan begins. Because there is no departure age, you can continue covered under Health Suraksha Top-Up Plus for the rest of your life. Individual and family floaters can choose between a one-year and two-year Health Suraksha Top-Up Plus plan. You also get a TaxBenefit under Section 80D, which is in addition to the Income Tax’s 80 C limit.
In-patient treatment, pre-hospitalization, post-hospitalization, day care treatments, domiciliary treatment, and organ donation are all covered by HDFC ERGO’s Health Suraksha Top-Up Plus. Sum Insured options range from Rs 3 lakh to Rs 4 lakh to Rs 5 lakh to Rs 7.50 lakh to Rs 10 lakh. Deductibles of Rs 2 lakh, Rs 3 lakh, Rs 4 lakh, and Rs 5 lakh are available. If three or more family members are insured on an Individual Sum Insured basis under one adult plan under the same policy, you will receive a 10% discount. As a renewal incentive, you will get a cumulative bonus of 5% of the Sum Insured for each claim-free year, up to a maximum of 50%. The cumulative bonus will be decreased by 5% at the time of renewal if there is a claim. This plan is available to everyone between the ages of 5 and 65. There will, however, be no cover-ceasing age. If both parents are covered under the same policy, children are covered from the age of 91 days.
#1. Upgrade later, when needed
Though it may appear to be the most cost-effective and’smart’ solution, it is also the most dangerous. Insurance companies will accept your request for an upgrade as long as you are young and healthy. When you’re old, grumpy, or dying, no one wants you to enter their portfolio or books.
Even if one of your family members suffers from a chronic illness such as Diabetes, Thyroid, or worse, makes a claim on their health insurance coverage, their chances of being upgraded are nearly nil.
If you’re not aware, anytime you ask for an upgrade, you’ll have to submit a new application to the Insurance Company, along with a statement of any new ailments you’ve caught, and so on. The insurance company will then assess the upgrade request in the same way that it would a new application and make a decision.
All waiting periods are applied to the upgrade part of the policy from the year of upgrading, not retrospectively, even if the upgrade is granted.
#2. No procrastination. Upgrade your cover now
If you have a lifetime health insurance coverage and your family is in relatively good health, this is by far the best option. Before you try anything else, including a Top-up plan, apply for an upgrade to the highest coverage available.
Yes, you must request an upgrade at the time of renewal by filling out an application, which is subject to the Insurance Company’s approval. If one of your family members has filed a claim for a chronic ailment, you should look into upgrading all of your other family members. You can apply for a separate plan if you are all covered by a floater (explained in point 4).
If you’re insured under separate insurance, request an upgrade for the rest of your family.
#3. Port your health insurance cover + upgrade
If the sum insured you have is the highest available with your present insurer, you can consider moving your policy to a different product within the same company, or to a different insurance company that offers higher coverage options.
Note that, in most situations, you must apply to the new insurance company 45 days in advance for portability. You must request your chosen sum insured in the proposal form when requesting for portability. Of course, portability is only available for the existing sum covered, not the improved sum insured. For the improved portion of the coverage, the waiting periods will begin anew.
#4. Buy second Health Insurance policy
If the sum insured you have chosen is the highest sum insured offered by the Insurance Company, and portability is not an option as mentioned above, another alternative is to get a second health insurance policy from a different insurer.
If you ever have a claim that exceeds the sum protected under Policy 1, you can always seek reimbursement from Policy 2. In your proposal form for the new policy, make sure to provide information about the existing policy.
#5. Top-up Cover
Though top-up plans have lately been a popular way to boost your health insurance coverage, you must first grasp how they work before enrolling. The policy offers a lot of coverage, but there’s a limit on how much you can claim up to.
For example, if you get a 10 lakh insurance with a 3 lakh deductible, you will be allowed to make claims in this policy only if you have made claims totaling more than Rs.3 lakhs.
Top-up health insurance:
Per-claim deductible: In this case, the top-up coverage will only be activated if a single hospitalization claim exceeds the threshold amount covered.
For example, if the above plan had two claims in a year totaling Rs.2 lakhs and Rs.3 lakhs, the top-up coverage will not kick in because none of the two claims exceeded the “per claim threshold” of Rs.3 lakhs. If, on the other hand, a claim of Rs.4 lakh is made, the top-up insurance will pay the remaining Rs.1 lakh, according to the terms and conditions.
Super Top-up health insurance:
This is a better form of a top-up plan, as the name implies. Even if the total of all claims made in a year exceeds the threshold sum insured, coverage will be triggered. In the example above, if there are two claims, each will be paid up to the sum insured of Rs.10 lakhs.
Unfortunately, only United India offers this plan (albeit reluctantly). However, HDFC Ergo and Max Bupa are in the process of offering such a plan soon. Keep an eye on this.
#6. Critical Illness Plans
A high level of health insurance coverage is usually required owing to the onset of a serious illness such as cancer, paralysis, heart attack, kidney failure, bypass surgery, and so on.
If the insured person is diagnosed with a designated condition and survives for 30 days, a Critical Illness Plan pays a lump sum payout regardless of the actual expenses spent. Getting critical sickness coverage of roughly Rs.5-10 lakhs is a smart idea. The main disadvantage of this plan is the possibility of contracting an illness not covered by the policy.
Make sure you choose an insurance that covers a wide range of ailments and lasts at least until you’re 70 years old. There are plans available that cover a total of 20 ailments.
#7. Defined Benefit Plans
Defined Benefit Plans offer fixed compensations for a list of procedures, regardless of the actual costs. One plan, for example, provides a fixed payout of Rs.1.00 lakh for angioplasty and Rs.2 lakhs for bypass surgery. Such claims are paid by these insurance based on photocopies hospitalization paperwork.
These plans also include a slew of other set benefits, such as predetermined amounts per day of hospitalization, and so on. These plans differ from Critical Illness plans in that they are based on actual hospitalization and surgery rather than diagnosis.
#8. No Claim Bonus Plans
If you have a choice, look for policies that provide No Claim Bonus (an increase in the total insured every year) rather than No Claim Discount if you are getting a new policy (decrease of premium). This ensures an annual rise in your coverage as long as you don’t file a claim.
The majority of decent plans include a bonus of at least 50% of the base coverage. Of course, this isn’t a long-term strategy because a single claim wipes away the bonus when the policy is renewed.
Note: The third chapter of my second book, “How to Be Your Own Financial Planner in 10 Steps,” discusses health insurance.
How much sum assured is enough for health insurance?
In the previous few decades, medical advances have greatly increased life expectancy. However, changing lifestyles and external influences have resulted in people living longer but in poorer health today, particularly in metropolitan regions. As a result of the increased number of automobiles on the road, there has been a considerable increase in medical diseases caused by new-age lifestyles, often known as lifestyle disorders. Everyone is more vulnerable to hospitalization today than they were a few years ago, from newborn babies to the elderly.
How much health insurance is required for an individual?
If you’re seeking for a health insurance plan in your early years of life, you should always go for a policy that covers you for more than 3 lakhs. This will assist them in obtaining much-needed coverage to cover any expenses incurred as a result of illness. Furthermore, you are less likely to file a claim at a young age, which means you are more likely to benefit from the no claim bonus or cumulative bonuses, which means your total insured will increase by up to 200 percent year after year.
How much health insurance is needed for family?
Meanwhile, the expense of healthcare has been continuously rising for the past decade or so, with medical inflation estimated at 15% per year. With escalating healthcare expenditures, not having health insurance regardless of age might be dangerous. You never know when an illness will hit and leave you with astronomical medical expenditures. A single hospitalization, if not planned for, might devastate a family’s carefully adjusted finances. In light of these possibilities, having a Health Insurance coverage in place to protect you and your family in the event of an emergency medical condition is critical.
Having a health insurance policy is beneficial, but it is also a legal necessity. To get the most out of a Health Insurance policy, it’s also critical to have the right balance of coverage. In India, most policyholders insure their families for roughly Rs 7-9 lakhs, with a single family sharing the common total insured. Choose a sum insured of at least ten lakhs for two adults and two children.
Health insurance for senior citizen or parents
When deciding on the level of coverage, you must be reasonable. Even a minor medical operation nowadays can easily cost up to Rs 100,000. Today, a bypass surgery at a reputable hospital costs more than Rs 2 lakh, and it will almost probably cost more in the next five years. A Sum Insured that appears enough today may not be sufficient to cover your healthcare costs in the coming years. As a result, before settling on the Sum Insured, it’s a good idea to take inflation into account. Also, if your parents are senior folks, they will require a bigger sum insured, as well as a higher premium commensurate with their age.
Is there ever a right amount or coverage that one needs to look at?
The proper quantity of coverage is determined by a number of factors, including the type of hospital you like, your current age and health conditions, your budget, and so on. The cost of healthcare varies greatly depending on the institution and the services chosen. When you choose an imported implant for an indigenous one, the cost of a knee replacement procedure practically doubles. The size of your health insurance should be proportional to your income and lifestyle in this way.
While there is no optimal sum assured for an individual’s Health Insurance policy, there are two widely acknowledged market standards for its amount. To begin, your health insurance should cover at least half of your annual income. Second, your insurance should at the very least pay the cost of a coronary artery bypass transplant at a facility of your choice. A minimum health protection of Rs 5 lakh is recommended by most personal finance specialists. You can insure a similar amount as a family floater to cover your entire family.
The escalating costs of drugs and treatments may make your individual Health Insurance plan insufficient to cover all of your costs. The basic Health Insurance coverage may not cover expenses such as extended nursing care, counseling sessions, or rehabilitation throughout the recovery phase. However, using products like Riders and Top-Ups, you may significantly improve your health coverage above and above your standard policy without having to pay a higher premium.
A Rider is an optional feature that provides you with additional benefits. Hospitalization is one of the most popular riders included with health insurance policies, but only once a certain deductible has been met. The insurance company does not cover deductibles, which must be paid by the insured. The deductible clause makes Top-Up plans less expensive because the insurer does not have to pay for minor claims. When the severity of the sickness is extreme (such as a heart problem), you’ll require a Top-up cover, which can bring your basic treatment cost to Rs 5 lakh or more.
What is Topup policy?
An indemnity policy that provides additional medical coverage to people with an existing health insurance policy or an employer mediclaim policy is known as a top-up health insurance plan. It allows customers to get their medical bills paid even if their standard health insurance policy’s limit has been reached. A top-up plan, on the other hand, has a mandatory deductible and only provides coverage when the deductible has been paid.
If your current policy has a sum assured limit of Rs. 5 lakh and you purchase a Rs. 7 lakh top-up plan. You can use your top-up plan whenever your existing sum insured has been depleted. So, if you have a claim of Rs. 8 lakh, your base sum assured of Rs. 5 lakh would be used first, followed by your top-up plan for the remaining Rs.3 lakh. If your claim is for more than 12 lakh, you must pay the remaining amount out of your own money.
Top-up medical insurance policies are more cost-effective and inexpensive than basic health insurance. These can be used in conjunction with your employer’s health insurance. Many people are perplexed by the fact that top-up and riders are the same thing. Actually, top-up plans from health insurance providers are just indemnity programs with regular coverage.
Is it worth to buy health insurance?
It’s becoming increasingly tough to maintain a healthy lifestyle in today’s world. In fact, the majority of today’s millennials are afflicted with ailments linked to their way of life. We are all aware that medical treatment is extremely expensive. As a result, it is critical for everyone to purchase a suitable medical insurance coverage. In India, the advantages of health insurance cannot be emphasized. Buying health insurance can help you get medical treatment without depleting all of your funds. Today’s healthcare insurance cover a lot more than just hospitalization costs.
Here’s a quick rundown of the advantages of health insurance plans and why they can be worthwhile.
Every health insurance plan covers the expense of medical treatment in the event that the policyholder is injured or becomes ill.
Medical developments have made it feasible for medical treatments to be completed in less than 24 hours, eliminating the need for you to be hospitalized. Almost every health insurance plan pays for day care in their network of hospitals.
Most insurance plans in India include a cashless hospitalization policy that covers over 6600 hospitals. The claim process is simple and quick, and it relieves the stress of having to make immediate financial arrangements in the event of a medical emergency.
The majority of reputable health insurance companies pay the cost of the accommodation while you are in the hospital. While some health insurance policies pay the full cost of a room, others simply cover a portion of the total cost in current room rent. Before acquiring an insurance policy, read the fine print.
The cost of domiciliary charges is covered by your health insurance plan as well. Your health insurance may cover alternative therapies such as Unani, Ayurveda, Acupuncture, and Acupressure.
Health insurance policies are meticulously constructed to meet even the tiniest of requirements. The cost of an ambulance is also covered, providing added security and peace of mind to policyholders.
Aside from the aforementioned benefits, the health insurance tax benefit supplied by your insurance provider is the most significant one to consider. These medical insurance tax advantages are based on the premiums you pay for health insurance for yourself, your spouse, your children, and other dependents.
We are confident that now that you are aware of the benefits of health insurance, you will not hesitate to get a coverage that is appropriate for you and your family. If you’re searching for an insurance that protects you and your family for a low cost, consider Health Suraksha by HDFC ERGO, which includes all of the aforementioned features as well as a renewal incentive in the form of a premium decrease for each claim-free year.
Disclaimer: The given information is provided solely for the purpose of illustration. Before proceeding with the sales, please see the policy wordings and prospectus for further information.
How much health insurance is sufficient India?
A decent rule of thumb is to get insurance coverage equal to around half of your annual income. So, if your annual income is Rs. 20 lakhs, a Rs. 10 lakhs health insurance coverage might be the best option for you. However, given the rising medical expenditures, it is advised that the minimum coverage be at least Rs. 5 lakhs.
Takeaway
Analyze your specific needs using the aforementioned guidelines and choose a suitable health insurance plan to ensure that you and your loved ones are well-protected.
What does top up mean health insurance?
Top-up health insurance is a type of extra coverage provided by health insurance firms to help policyholders who have reached their health insurance plan’s maximum limit.
What is health insurance deductible top up?
A deductible is the percentage of a claim that is not covered by the insurer and must be paid by the policyholder before the top-up policy’s benefits can be used. The deductible element of a top-up plan makes it less expensive because it decreases the insurance company’s responsibility.
Is New India Assurance good for health insurance?
New India Assurance Company, as the largest government-owned general insurer, has undoubtedly become the finest option for many of us. This company provides a wide range of health insurance plans at a very reasonable price for both individuals and families (family floater). The New India Assurance Company also pays for medical examinations. A variety of extra advantages are available, including hospital cash for a maximum of 10 days. It also provides a 30-day grace period from the health insurance policy’s due date. The health insurance plans available here can be renewed for the rest of your life. It covers pre-existing conditions after a four-year waiting period from the policy’s inception date.
New India Assurance also allows you to renew your health insurance coverage online from the comfort of your own home or office in just a few minutes. People also feel safe and secure investing in a health insurance plan with New India Assurance because the company is 100% controlled by the Indian government.