Health insurance is an indispensable prerequisite of modern life that grapples with multiple health deteriorating stressors every day, including lifestyle imbalances and degrading air quality. An adequate medical insurance cover can take care of diagnosis, treatment, and healthcare in the most affordable as well as dignified manner.
In recent times, medical inflation increased at varied rates – 8-23 percent in different states. With the consistent rise in the cost of medicines, medical tests, in-hospitalization, and consultation fees, the sum assured requirement for your family is thus bound to change, and keep increasing. With evolving life stages, fluctuating incomes, and inescapable inflation, it is a good practice to review your family’s health insurance needs every three years.
Rs 5 Lakh family floater is not sufficient
Let’s assume that, on average, medical inflation impacts the cost of hospitalization at 15 percent. So, the treatment that costs Rs 4 lakh today in the hospital will cost Rs 16 Lakh after 10 years. The cost will escalate to Rs 65 Lakh after 20 years. Further, the cost of the annual premium will continue to escalate, if the policy is purchased at an advanced age. It is thus always advisable to sign up early for high-value covers at a low cost.
A household with young kids and senior parents is clearly not sufficiently covered in a ‘Rs. 5 lakh family floater plan’ any longer. In the absence of the right insurance plan, each medical procedure, ranging from routine dentures to non-invasive surgeries, to more specific health care for critical illnesses, can severely dent your cash flow.
In a pandemic-afflicted world, we are witnessing the harsh repercussions of medical emergencies. In the absence of adequate health insurance, your present savings, as well as future well-being, is at considerable (but avoidable) risk.
Regularly Top-up Sum Assured
Every age group has distinctive medical risks and coverage needs. While the young kids are more prone to outdoor injuries, the adults are at risk of on-road accidents and the seniors mostly live with pre-existing health & medical ailments. Thus, a family with young kids as well as senior parents should essentially opt for a combination of available products. Never depend on a single policy. Do avail family floater plan, employer’s group insurance, and individual insurance plans for each parent. Signing for a top-up with a family floater (& deductible) of Rs 10 Lakh, you can affordably opt for an insurance cover of Rs 1 crore. For example, a family floater at 35 years of age covering 2 adults & 2 children can be topped up for Rs 90 Lakh with Rs 10 lakh tax-deductible amount with an annual premium of Rs 5800. The same top-up plan at the age of 60 years will cost Rs 21000 annually.
Buy individual plans for parents
Adding a parent to your family floater plan can be a costly mistake. For, the cost of the premium is decided basis the age of the eldest member in the group. The policy expires as the eldest member reaches the maximum age for cover. An individual insurance plan on the other hand will offer more comprehensive coverage for the elderly. At 60 years, the policyholder is more likely to have pre-owned diseases & several health risks. Under an individual-specific plan, the policyholder can get wider coverage for emergency medical situations, involving preventive health check-ups, in-patient hospitalization, pre & post-hospital care, ambulance charges, etc. On average, Rs 10 lakh individual plan separately for each parent can take care of maximum expenses owing to critical diseases as well as pre-owned diseases. Do add a critical illness cover early in life and opt for a disease-specific top-up as per the requirement in the latter days.
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Employer’s Group Cover: Employee benefit programs are cost-effective insurance plans. These plans offer affordable comprehensive coverage for you as well as your family members. The cashless claim is extended for pre-existing illnesses as well as maternity expenses from day one of inclusion. There is no waiting period and thus it makes employer’s insurance plans one of the most affordable covers. They can come in handy for urgent medical expenses. It also lets you continue your no-claim bonus on the primary floater plan, by taking care of smaller health complications.
Source: https://ipoinfo.co.in/how-much-health-insurance-do-you-need