3 Incredibly simple ways to get high-quality health insurance plan

Yes, It is possible to get low-cost, high-quality health insurance plans. This blog is dedicated to guide you on this.

Some people have spent a significant amount of money on extremely expensive high-coverage health insurance. You can still obtain the same level of protection for a fraction of the price. Let’s take it step by step to understand it.

First of all you need to determine whether you need an individual plan for everyone in the family or do you need a family floater plan. Do be aware that health insurance premium is determined based on eldest person’s age. Therefore, parents plan should be considered separately.

Assessing the need for additional health insurance coverage

A health insurance policy worth Rs 3 to 4 lakhs is no longer considered adequate. We must increase our medical insurance coverage in order to keep up with rising healthcare costs. In addition, even if your employer already provides health insurance, you should still obtain personal health insurance to supplement it. Workers in the private sector would be covered by health insurance only during the time that they are employed by the company they work for. Obtaining insurance later in life can be extremely difficult and expensive, and this is especially true if there are any health issues present at the time. Additionally, if you are between jobs and get hospitalized, you run the risk of not being covered by insurance. With just one major hospitalization, you could lose everything you’ve worked so hard for.

I am aware of instances in which very young people have been denied insurance coverage because the medication they are taking is on the insurers’ blacklist. In the event that a health insurance company approves the policy, it will remain in effect for the rest of the policyholder’s life, provided that the premiums are paid on time. Even though pre-existing conditions may be subject to a waiting period, any new illnesses or diseases will be covered without restriction.

Insurance is handy in emergency

What steps can be taken to improve health insurance coverage?

There are three ways in which you can increase the amount of coverage provided by  health insurance:

The following options are feasible :

1. Increase your guaranteed base plan sum – This option is extremely expensive and is not recommended.

2. Take up a top-up insurance policy – This is a standard health insurance policy that pays hospitalization costs after a specific deductible (the amount paid by the insured for each hospitalization claim) has been satisfied. It provides additional coverage above and beyond the limits of the existing health insurance policy in a single bill. Another health insurance coverage or self-funding can be used to meet the threshold limit requirement.

3. Investing in a super top-up insurance plan – This is the most cost-effective solution. What makes this different from top-up insurance, and what are the benefits of doing so? We will go into greater detail about this.

What is the difference between top-up insurance and super top-up insurance?

 A Super Top-up cover is similar to a top-up cover; however, there are a few differences between the two types of covers.

 It is only when your claim (which is the cost of a single hospitalization) meets a certain threshold that your top-up health plan will payout. A super top-up health plan pays for all hospital expenses over and above the deductible in a single policy year, rather than individually for each claim paid,  As soon as your deductible has been satisfied, the super top-up policy takes effect. In contrast to a traditional top-up plan, which only covers single claims over the deductibles, this plan covers multiple claims over the deductibles.

Let’s look at an example to better understand:

If you have a Rs 10 lakh Super top-up health insurance plan with a Rs 5 lakh deductible, the super top-up insurance will cover all medical expenses up to Rs 15 lakhs in the policy years, with the first Rs 5 lakhs having to be paid by the insured. As a result, if you already have a health insurance plan worth Rs 5 lakhs, the deductible will be covered by your existing health plan, and the remaining amount will be covered by the super top-up insurance. A Super top-up insurance plan has a single deductible that must be met before a claim can be made against the super top-up insurance plan.

What are the benefits of purchasing Super Top-up health insurance?

Medical expenses are increasing at a much faster rate than inflation, at a rate of approximately 12 to 15 percent per year. Having a super top-up plan will be beneficial and will give you the extra protection and peace of mind.

Get a Super top-up health plan to supplement your company’s existing health insurance plan to make it more comprehensive.

If your current health insurance coverage is insufficient, a super top-up plan can help you supplement it without having to go through the hassle of purchasing or switching to a new comprehensive health plan.

So, how low is the premium for a super top-up health insurance plan, and what factors contribute to this low premium?

Many people are surprised as to why the premium is so low. For example, the premium for a four-member family (2 adults and 2 children) ranges from Rs 1,400 to Rs 7,000 for a Rs 50 lakh sum assured, depending on the age of the members (with a deductible of Rs 10 lakhs. It ranges from Rs 5,000 to Rs 16,000 for a deductible of Rs 5 lakhs. A super top-up of even up to Rs 90 lakhs is not prohibitively expensive and does not increase in the same proportion. It will range from Rs 1,800 to Rs 8,000 and from Rs 7,000 to Rs 20,000 respectively for the above example.

Please keep in mind that these are indicative rates and that actual rates may differ from one health insurer to another. Additionally, the age range listed above is for the eldest member, who can be anywhere between 26 and 60 years old. Over this age bracket, the super top-up insurance could become prohibitively expensive and could even be denied.

The reason for this low cost is that the likelihood of receiving a super top-up is statistically lower. Consider the implications of this.

In the event that you had a Rs 15 lakhs insurance policy right now, what would the typical hospital bill be? Mild hospitalizations typically cost less than Rs 5 lakhs, but serious or repeated hospitalizations can cost a lot more, which is why having this type of plan in place would be very beneficial. For example, if an accident occurs while a family is on vacation, it is possible that a greater number of people will be admitted to the hospital at the same time. You will only incur bills in excess of Rs 10 to 15 lakhs if you are in the most dire of circumstances or if you are exceptionally unfortunate. So, even if one major hospitalization happens in your life time (though I pray that it does not), will cover for all the additional premium you would have paid.

Is getting both a basic plan and a super top-up from the same provider feasible?

Yes, it is recommended, though it is not required. Documentation is easier to understand, and communication is improved as well. If you choose not to use cash, the transaction will be completed without it. If this is not the case, only original bills would be required to be submitted to both insurance companies, and only one of them could be cashless, while the other would have to be submitted as a reimbursement request. Furthermore, if the policies, both the base plan and the super top-up, were obtained from the same insurance company, the insurance company would be the sole owner of all of the records.

Even if it is not preferable to obtain base plans and top-up plans from different companies, it is preferable over not obtaining Health insurance services at all.

Other aspects of the Super Top Up Plan are as follows:

  • A super top-up policy can also be purchased as a stand-alone policy, without the need of base insurance plan.
  • When it comes to super top-up plans, the No Claim Bonus is not always available (NCB).
  • Plans were developed to cover the costs of treating the COVID-19 pandemic, as well as other illnesses that may arise in the future.
  • A super top-up health plan, like all other health insurance policies, qualifies for tax benefits on the premiums paid under Section 80-D.

The Super Top Up health insurance Plans are subject to certain exclusions

  • Expenses incurred as a result of pregnancy
  • The expenses for donors’ hospitalization and rehabilitation
  • Dental surgery that does not necessitate hospitalization
  • Wars, rebellions, acts of aggression by foreign powers, invasions, hostilities, and civil wars, to name a few examples.
  • Plastic surgery, contact lenses, glasses, and hearing aids
  • Transplantation of stem cells, treatment of congenital diseases
  • Vitamins and supplements, unless they are required as part of in-patient hospitalization, unless they are required in the case of an animal bite, or unless they are required as part of the treatment
  • Expenses incurred as a result of experiments

 

Please keep in mind that this is only a preliminary and illustrative list. After your deductible has been met, you will be able to file a claim with the insurer.

Please fill up this short form if you would like to know the customized premium amount that you need for you and your family or to learn more about health insurance (basic and/or super top-up plans).

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