What is High Value health Insurance & How Much Coverage Do I Need?

by Jayant Harde Our associates have a rich corporate experience of

One has to prepare for unplanned activities such as medical emergencies, hospitalizations in a world complete of uncertainties. People have become more conscious of the encouraging sign of health insurance and mediclaim insurance policies. Recent trend in health insurance policy shows that high-value health insurance plans are being offered by health insurers. The Sum Assured is what distinguishes these plans from the periodic plans. In these health insurance plans sum assured goes up from Rs 1 crore to Rs 6 Crores which is well above Rs 2 lakh to Rs 5 lakh. Let's have a comparison of these policies ' merits and demerits. Deciding on the policyholder's health insurance coverage is a significant variable.

Advantages of High-Value Health Insurance:

They Provide Comprehensive Coverage:
Healthcare has advanced by leaps and boundaries with rapid advances in the field of science and medicine, but so have the medical cost of treatment.Some medical instances, such as sophisticated cancer treatment, may cost more than Rs 10, 00, 000. This could not be covered by the basic health insurance cover.
International Treatment Are Covered:
Travelers who are commonly on a foreign journey might also discover the high-value health insurance plans as the most appropriate choice. In foreign nations, medical treatment costs are much greater than in India, so a periodic plan could not satisfy the medical expenses incurred on a foreign journey. Taking High Value Health Insurance Cover is more advantageous in such instances.
No Sub-Limits:
High-value insurance policies on hospital room rents do not have sub-limits. Because of the categorization system, however, small category rooms may be permitted.

Drawbacks of High-Value Health Insurance:

High Premium:
This comes as a no-brainer. High Sum Assured comes with a greater premium. For middle-class individuals who are already underinsured, paying greater premiums for health insurance is totally out of limits. These plans are more appropriate for individuals worthy of High Net who can pay greater premiums for guaranteed greater sums.
Despite High Premium, No respite from Waiting Period:
Health insurance plans of high value do not come with a rider to waive the requirements of the waiting period. Despite charging a greater premium, they still have that provision. These high-value health insurance plans are also covered by the exclusion list that refers to periodic health plans. Pre-entrance Health checkup is needed and the excluded list would include any disorder identified.
Plans are Offered After Strict Underwriting:
All health insurance policies are issued after strict underwriting, but even more stringent underwriting procedures are applied when the high-value health insurance policy is adopted. For the senior citizen, a 20% co-pay clause may be present.

Should You Opt for a High-Value Health Insurance Policy?

We need to be aware of the increasing medical inflation and the occurrence of terrible illnesses such as cancer, tumor, heart attacks, and stroke, a valuable health insurance policy seems to be useful. But following factors should be taken care of by the person.

Your age
Income
Expenses & Liabilities
Nature of Job
Number of Dependents in Family
Medical Facilities you desire

How Much Health Insurance Cover Do You Need?

Health insurance is the savior when it comes to rescuing us from the monstrous costs that are incurred in the therapy of medical emergencies that include the treatment of critical diseases as well as the fees for patients. Factors to be considered when choosing how much health insurance you need are discussed below.

Ability to Pay Premium:
One of the first criteria to be used is the individual's capacity to frequently pay premiums as the premium is directly proportional to the selected guaranteed amount. Not everyone can afford the Rs 20 lakh cover premium because it's going to be enormous.
Percentage of Income:
One should have health insurance equal to 50% to 100% of your annual income, and if you've spent more than 3 lakhs on medical expenses over the past 3 years, the person should add another 3 lakhs to the assured sum.
So if the annual income of the person is Rs 4 lakhs and the medical expense over the last 3 years is 3 lakhs then the total amount assured to be selected would be 7 lakhs.
Family History:
If the person's family has a lifestyle disease history then the likelihood of passing it on to the next generation will be greater. When the person is young and healthy, anyone who falls into the genetically high-risk category should buy the person wider health insurance coverage.
Age:
The age factor is a key factor in determining the coverage quantity. If you are 25 years of age, you can bring up Rs 5 lakh to Rs 10 lakh cover, whereas you need to purchase elevated coverage for a middle-aged individual near 45 years of era as the possibilities for purchasing health insurance declines.
Keeping Specific Hospitals in Mind:
Depending on the particular hospital, people can also decide on the amount guaranteed for the health insurance policy. A costs Rs X for a comparable therapy hospital, whereas fees are 2X for Hospital B. Depending on the type of hospital or hospital grade, the quantity of health cover needed could be determined.

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Source: https://hardejayant.blogspot.com/2019/08/high-value-health-insurance-tips.html