The coronavirus pandemic has affected everyone in different ways. The second wave of the pandemic, in particular, has been marked by an increase in hospitalization, not just for the elderly but also the relatively young. In these trying times, having yourself and your family covered adequately by an insurance plan should be a priority.
A financial planner answers some of the frequently asked questions:
What kind of health insurance should I choose?
“How much cover should I opt for?” is a question that is often asked. This depends on your own health condition, the city where you are living, and the cost of hospitalization in the vicinity. For instance, a person living in south Mumbai where hospitalization is expensive—and it is likely they will get admitted to a nearby hospital in case of an emergency—should have a larger sum assured.
During the pandemic what kind of plan should I choose for my family?
Give preference to separate health cover for each member of the family. Although it can be part of a family plan, each member should have independent sum assured, unlike family floater plans. Family floater plans are those plans where there is a maximum limit and the whole family dips into it. During the pandemic, families which had such floater plans have suffered when several members had to be hospitalized.
What are top-ups and should I opt for one?
After zeroing in on a proper healthcare plan, also opt for top-ups. Top-ups are those healthcare plans which reimburse incremental costs incurred once we exhaust the basic sum assured. Cost of top-ups per lakh of cover is less. Also, over the years, healthcare costs will go up, and your existing sum assured may not be sufficient. At an older age, sometimes, getting new or additional health cover may be an expensive proposition. Top-ups come handy then.
Then, there are covers available for certain critical ailments. These are very useful in case you or anyone in your family is diagnosed with certain critical illnesses.
Are there plans that can cover treatment costs abroad?
Yes. Those who can afford larger premium should find out about health plans which may cover you in case there is a need for treatment abroad. In case of a medical emergency, if there is a need to be airlifted, certain health plans also cover such costs.
Is one health policy sufficient for me and my family?
Gone are the days when you had just one health insurance plan, commonly called ‘Mediclaim’. You may have a cover offered by your employer, but in addition to that, you need an independent policy, a top-up plan, and if possible cover additional costs like airlift and treatment abroad.
Also, check if the health insurance cover is offered by a non-life insurance company or a life insurance company. In case of a cover by a non-life insurance company, you will always get the total cost incurred during the treatment even if you have larger sum assured. Also, this amount, for which a premium is paid, can be claimed every year. On the other hand, if the offering is by a life insurance company, you will get the complete sum assured irrespective of the expenses incurred during the treatment. This, however, is a one-time payment.
I am covered by my employer. Do I still need to get another health insurance policy?
Yes, you must. These are uncertain times and job losses are a reality. In case you lose your job, you will also lose the cover provided by your employer. Therefore, as a good practice, you must always get a separate insurance plan for yourself and the family.
Expert Advice
Like your investment portfolio, you must keep reviewing your health insurance covers, pandemic or not. Also, please share all the details with your family. “I have sufficient health insurance cover for my family and myself but my family was unaware of it and I was in ICU,” a reader wrote to me while he was admitted in a hospital during the pandemic. Don’t make this mistake.
(As told to Kritika Banerjee)
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