Increase Your Medical Coverage Without Much Increase in Premium!

Prices are rising on a daily basis and medical inflation is rising at a very high pace. No wonder, the health insurance plan you have bought starts looking more and more inadequate to fulfil your needs with every passing day. Therefore, to enjoy the benefits of health insurance it is necessary that the coverage amount is increased in proportion to the medical costs while ensuring that increase in premium is kept to the minimum.

You must be wondering how it is possible. The insurance providers have to pay huge sums of money to hospitals while settling claims and since they can’t pay it all from their pockets, they pass on the increased costs to the insured. But there is a way out of this for an average buyer of insurance policies.

There are a few steps you can take to ensure that you’re adequately covered while your premiums don’t go way too high:

1. Start Early

It is advisable to plan a health insurance policy early in your life, preferably the time you start working in your 20’s when you’re single or married with no kids. Health insurance companies charge a lower premium when the insured is young as the key determinant of the premium amount is the age at which you are seeking health insurance. Slowly as your family size increases you can start increasing the sum assured cover.

2. Top-up Option

A top up policy is the most helpful way to increase your medical coverage at a low premium cost and it is 20%-30% inexpensive than a new health policy. It is prudent to take a top-up plan if you intend to increase your coverage from your existing mediclaim coverage and reap benefits from both plans.

Such Top up provision is to provide extra coverage in the case of extended illness or a main accident.

The health insurance top up plan guarantees that you get an upgraded coverage at a reasonable premium. Choosing for a medical insurance top up offers you a wider coverage at a much smaller costs.

Top-up policies includes all treatment costs due to hospitalization. Such plans can be taken from your existing insurance company or from some other as well. It is prudent to get top-up plan from your existing insurer as it saves on time and paperwork. Buying a new policy will increase your premiums more as compared to a top up option on your existing policy. Top up plans also offers you a tax benefit under Section 80D of the Income-tax Act, 1961.

3. Super Top-up Cover

Alike top-up cover, there is another option known as  Super Top-Up cover, with a very minute difference. A top-up cover will come into action only if your claim amount (bill for a single hospitalization) exceeds the basic coverage threshold. Super top up plans come into action and considers the TOTAL of the claim amount bills in a policy year and not for the single occurrence.

4. Making Right Selection

There are various insurance providers in the market today which may offer you health insurance at low cost. However, do not ever make your decision looking for the cheapest health insurance plan. Premiums matter, but having a plan with the lowest premium doesn’t mean it is the best one for you. The criteria should be to evaluate the different features being offered at a particular premium. Analyze your needs and understand the  coverage, which the insurer is providing you basis the premium charged. As age increases, most insurance companies start charging higher premiums. Therefore, the benefits of health insurance are lost with increasing premiums due to inflation and age. However, there are certain insurance providers who provide insurance plans that offer plans with level premiums across all age groups. Find out about such health insurance companies and then select the best plan from their portfolio. It is not difficult, just requires a bit of patience and proper research to do it. With the boom of growing online comparison insurance portals and licensed web aggregators like comparepolicy.com it is extremely easy to compare the coverage provided by different insurance companies and choose a plan while meeting all your requirements at minimum premium.

Instead of finding the cheapest health insurance, try looking for the one offering maximum features and benefits. Do your research diligently and then select the plan that fits the bill. Not all, but some of the health insurance companies will definitely be offering you higher coverage and great benefits at premiums affordable for you!

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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