HealthcareSectors

5 Effective Ways to Increase Health Insurance Coverage

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A health insurance plan ensures you have protection against unexpected health emergencies. However, these days the cost of health insurance is soaring high along with the increase in disease and the rise in the treatment cost. Hence, you must have a comprehensive health insurance policy to cover all conditions and ailments. This is because the desire to buy a low-cost insurance plan might seem cost-effective, but it will cost you even more. 

So, as you are increasing the sum assured, you may also doubt paying a higher premium amount. However, there are many effective ways to increase health insurance coverage at an affordable rate, and in this blog, we will discuss how!

What is a health insurance plan?

A health insurance plan covers your medical expenses and other charges in case of any unforeseen medical emergencies. These expenses might include – medicine costs, hospitalisation charges, doctor’s consultancy fees, and many more. In return, you must pay a premium to ensure your health insurance is active. 

What are the benefits of a health insurance plan?

A health insurance policy comes with several benefits. The rising cost of treating certain diseases today is rising exponentially. Hence, you must invest in a plan which has comprehensive cover and help you in reducing your burden of bearing massive amounts. Other benefits of a health insurance policy are as below –

  • Cashless claim benefit: Many insurers offer cashless treatment at certain hospitals to make the process easier and more convenient for you. This means you do not have to pay the bills at the hospital, and the expenses are settled between the insurer and the network hospital.
  • Additional protection: You can customize your health insurance plan as per your needs. Also, you can add several riders, which offer additional protections. These riders can be attached to the existing plan and expand the security scope. Examples of riders are – Critical Illness Rider, which protects you from life-threatening diseases such as – cancer, heart failure, etc.
  • Tax benefits: As a taxpayer, you can claim deductions under section 80D concerning the premium you paid. However, this is only possible if you pay the premium through UPI, net banking, etc. For most people, tax exemption is a relief and a massive advantage for their ongoing expenses. 

What are the effective ways to increase health insurance coverage?

As the sum assured increases, you might ask, “Do I need to pay more premium now?” Well, below are a few ways to enhance the health insurance plan while ensuring the premium amount is still affordable –

  • Purchase early: Buying an insurance plan very early is beneficial as the premium payable is low. This is because as you age, the chances of age-related diseases such as diabetes, heart condition, etc. rise, along with the premium amount. These factors and your age and medical history will determine the premium payable. 
  • Long-term health insurance policy: A plan with 2-3 years of validity is better than one with a regular annual term. This is because policies with long tenure usually have lower premium amounts. So, always consult your insurance provider for a long-term health plan. Remember to compare the policies offered by them and then choose the one which suits you the best. 
  • Purchase the right add-on covers: Add-ons are also called riders or additional coverage. These riders offer other benefits along with the health insurance you currently have. Some of the riders that most insurance companies offer are –
  • Critical Illness Cover
  • Personal Accident Rider
  • Maternity Cover
  • Hospital Cash
  • Room Rent Waiver, and many more.

These covers are available at an additional premium, but the IRDAI has announced that the total premium for all the riders under one health insurance cannot exceed 30% of the initial premium amount. This means if the premium payable is Rs. 10000, the premium you might need to pay for the add-ons will be around Rs. 3000.

  • Choose a top-up or a super top-up plan: An effective way to increase higher coverage is to opt for top-up plans. These plans will ensure you have coverage even after your original sum assured is finished. This is done by splitting your plan into two parts -one, re-deciding the limit of the original health insurance plan and two, availing a secondary cover, which will help you raise a higher claim
  • Increase your current sum assured: At the renewal point of the existing policy, the insurance company will offer you the option of increasing the sum assured. Though it will slightly raise the premium amount, it covers your medical needs without paying too much from your pocket. An additional advantage of increasing the sum assured is that you will not face any waiting period (usually happening while buying a new policy).

Critical points to remember

If you purchase a health insurance plan with a lower premium rate, always look for the reasons. Check for any clause of co-payment, deductibles, and sub-limits – as in these cases, you might actually end up paying more at the time of claim. Hence, always opt for health insurance coverage that covers you adequately without compromising the benefits and at a premium which is not too heavy on your pocket. 

The benefits of the health insurance plan are undeniable. The cover it provides you is huge, depending on the amount you choose. However, the thought of the heavy premium can be excruciating. With the information given above, it will be easier for you to increase the coverage of your medical insurance plan without paying too much premium. Also, always talk to your insurance providers and compare the plans before purchasing the plan. 

Disclaimer – The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

 

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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