Insurance query: increase the amount of insurance

I am 33 years old and have a health insurance policy R 10 lakh. I developed high blood pressure, which was announced during the renewal with my current insurance company. However, given the medical inflation and the unknown environment we live in, I feel it R It may be 10 lakh less in case of any unfortunate event. I want to increase my security deposit. What’s a better option – switching to a higher amount insurance plan, getting a super raise, or is my health insurance’s take-back benefit enough?

Rajan Gulati, Guwahati

It’s great to already have a safety net in place. But given the rising healthcare costs, it is quite possible that the entire $10 lakh insured would be exhausted in one hospital. This results in the need for additional support in addition to the amount that your current policy will cover. To make a wise decision about what you need, you must first understand the options:

The benefit of the restoration It is a feature that returns the total sum insured if it is exhausted during the policy year. The take-back feature, which is very common among floating family plans, covers all insured members of a health insurance policy. Also known as “recharge feature” or “insured refund”. Although the advantages of restoring are straightforward, there is often a fine print attached to it. Basically, most health insurance plans that offer reimbursement benefits only allow a subsequent claim for an unrelated illness. It means that the second claim cannot be related to the first claim in any way. Use of Security Sum: Mostly, rollback feature is available if the full sum insured has been used. The refund feature will not be applied to the second claim if the insured amount is left. Refund Amount: Normally 100% refund of security deposit is allowed. However, some plans may restrict this ratio and fluctuate. Additionally, some insurance plans may allow you to boost your recovery amount with an add-on.

Super Balance RechargePremium Supplementary Health Insurance: Provides coverage for accumulated medical costs incurred after the deductible limit is exceeded. The deductible is the minimum that the insured pays either out of pocket, or that is paid out of a basic health insurance policy. Once this threshold is exceeded, the super mobilization feature takes effect and covers Medicare expenses up to the security deposit. Superfills continue to complement existing health coverage with its key feature – covering multiple claims in a policy year.

Transfer to a higher insured amount: The need to transfer your health insurance generally stems from the point at which your requirements begin to exceed your plan’s coverage. Customers can transfer their policy at the time of renewal. You need to contact your new insurance company at least 45 days before your current policy expires.

You can choose the Super Top up plan to enhance your coverage in addition to your existing base plan. While you can choose the option that suits you best, having both the basic plan and the premium package from the same insurance company increases your chances of settling a cashless claim hassle-free. You can also transfer your policy if you are not satisfied with your current insurance company or the features of your current plan. However, a few insurance companies may have reservations about portability in your case due to PED (pre-existing disease) hypertension. In this case, you can also exercise another option, which is to increase the amount insured in the current policy, taking into account a reasonable premium and medical underwriting. Having the rollback benefit on the basic plan doesn’t overlook the need to boost cover for comprehensive coverage.

The writer is GT. Chairman and Managing Director – Bajaj Capital Limited

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September 10, 2022

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