Insurance plan

Building a strong health insurance plan

Since childhood, we have been taught that food, shelter, and clothing are the three necessities of life. Unfortunately, nobody talked about insurance, and nobody sees it as a priority. However, insurance is an incredibly effective tool that provides protection against adversity in exchange for a nominal premium.

We have all seen and heard stories of people selling off their jewelry or valuables and mortgaging properties to pay emergency medical bills. Good health insurance can easily solve these problems at a relatively much lower price. With the unprecedented increase in lifestyle-related diseases, very early onset of health problems, and increasing medical inflation, having a health insurance plan is a necessity today. absolute.

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While many people know the importance of health insurance, few know how to design coverage that acts as a formidable shield during a medical requirement. Let’s take some time to understand how to do it:

Buy a basic plan at a young age

I sincerely advise that everyone have basic health coverage, this acts as the first layer of security for the insured in the event of the unexpected. Start investing in a good health insurance plan early to take advantage of lower premiums and broader coverage. In health insurance, age plays an important role in calculating the premium, the younger you are, the less premium you will have to bear. In addition, insurers often impose a waiting period on a few existing conditions or conditions, and these waiting periods must be served before a claim can be made for those conditions/conditions. One benefit is that at a younger age you are less likely to suffer from ailments.

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Even if your employer covers you through group health insurance, please do not minimize the importance of an individual coverage plan. Group medical claims only cover you until you become part of the organization, and the policy may not meet your personal needs. To continue enjoying the benefits of your health insurance, be sure to renew your policy every year so that you are well prepared in the event of a medical emergency.

Top up your basic package

Many people think that having a basic health cover, for Rs 3 to 5 lakh as ‘sum insured’ is enough. However, even a cursory glance at soaring medical costs will tell you to rethink. The whole idea of ​​buying health insurance is to ensure that you are worry-free and can live a dignified life, which requires adequate coverage. Still, you can’t keep increasing the sum assured every few years, and that’s where a supplemental plan comes to your rescue. Supplemental plans are designed to enhance your basic plan by providing you with additional coverage on top of the existing policy, at a nominal premium. To understand how a supplemental plan works, you need to know the concept of “deductible”. A ‘deductible’ is the limit up to which the cost of the claim must be borne by you or your basic insurance policy. For example, if your supplemental policy has an excess limit of Rs 5 lakh, it means that your supplemental plan will come into effect once the claim amount crosses this limit. The initial Rs 5 lakh will either be borne by the insured or the basic policy. For a smooth experience, align your complementary font to your base font. Suppose your basic policy has a sum insured of Rs 3 lakh, then you would need to purchase an add-on plan with an excess limit of Rs 3 lakh.

If your employer offers you a GMC, and you are hesitant at this time to take out individual health insurance, then you can simply take out additional cover to supplement your GMC.

Buy critical illness cover

Sadly, India is experiencing an unprecedented increase in serious diseases such as cardiovascular problems, cancer, kidney failure, tumors and paralysis to name a few. However, thanks to advances in medical science, many of these problems can be solved if proper treatment is undertaken. The cost of these treatments is quite high and it takes a substantial amount to get proper treatment. Typically, a critical illness is an insurance policy, which means the policy pays out the lump sum if the insured is diagnosed with a critical illness named in the policy. It is important to note that the list of illnesses varies from insurer to insurer; one has to go through this list thoroughly to get a clear understanding of the covers. Critical illness is a must for anyone whose blood relatives have suffered from these life-threatening illnesses.

Complete with a wellness walkr

You can take out a wellness rider, which covers medical consultation fees, OPD fees, teleconsultation and investigation fees such as pathology or radiology fees, and provides coverage for a health check-up. preventive health. Please note that the coverages of these endorsements vary from insurer to insurer and you should research the endorsement that best suits your needs.

If you buy these few policies, you will on the whole be sufficiently covered against any health-related requirements. So, now that you understand how you can build a solid health insurance plan, I urge you to assess your needs and find the right coverage for you and your family.

Always remember that the cost of insurance is considerably low compared to the financial costs that one might have to bear in the event of an unforeseen event. If the Covid-19 pandemic has taught us anything, it’s that we need to take our health seriously and be prepared for medical demands.

(The author is the Managing Director and CEO of Bajaj Allianz General Insurance)