Just like life insurance policies, health insurance policies with a cover of Rs 1 crore, is becoming the new norm in the industry. With health inflation on the rise and average out-of-pocket medical expenses on the rise, insurers are increasing the cover sizes of the health insurance policies to reduce the burden on customers. Apparently, India has one of the world’s highest rates of out-of-pocket spending in health care. As per a study, out-of-pocket expenses currently account for 65% of the overall healthcare spends.
This Article by Amit Chhabra, Head- Health Insurance, Policybazaar.com highlights the importance of Health Insurance in one’s life and how insurance has now become a basic need and integral part of budget.
With the constant rise in the cost of healthcare in India and considering the ever rising instances of lifestyle diseases, buying health insurance with adequate sum insured has today become a basic necessity. A health insurance cover provides you with a much needed financial backup at times of medical emergencies. Health insurance is now widely considered a basic need, and smart consumers are increasingly exploring the possibility of getting better facilities out of their policy. Usually, consumers opt for basic health covers in the range of Rs 7 to 10 lakh. However, some most expensive procedures such as organ transplants, serious heart problems, or advanced-stage cancer entail a total cost of Rs. 40-60 lakh, during such situations, the usual health insurance plans fail to solve the purpose.
As per a survey, while the number of cancer cases in India in 2017 was 15 Lakh, the number is expected to cross 17.3 lakh by the end of 2020. On the other hand, cases related to heart ailments have gone up in almost every Indian state in the last two decades.This is why there are now health insurance plans that cater to all such needs providing eight-figure sum insured.
These covers may range from Rs 1 Crore to Rs 2.5 Crore.
Individuals who have a history of critical illnesses in the family—illnesses that require expensive and prolonged hospitalisations—may also opt for a big cover. In instances of diseases such as advanced cancer, private hospitalisation may easily cost tens of lakhs of rupees, and only a large-sized cover can protect the patient. Lastly, if the patient wants to go abroad for advanced treatment, a low or mid-value health policy would certainly be inadequate. In all such situations, the best way forward is to have a high-value health insurance plan.
One such health insurance plan that offers 1 crore sum insured is Aditya Birla Health Insurance’s Active Assure Diamond plan. This plan comes with a Rs. 5 lakh base cover plan and Rs. 95 Lakh health cover as a Super Health Top-up. In total, the plan offers sum insured up to Rs 1 crore. Though one can only make a claim from the super top-up policy only after the person funds Rs. 5 lakh of the medical expense on his own, which is the deductible amount.
In a top-up or a super top-up plan, there is a deductible component and a sum insured component. The deductible amount is a pre-defined amount that the customer will bear, through his/her own finances or from the base health insurance or any other income source in order to pay for hospitalisation.
Any amount over and above this deductible amount will be borne by the insurer. Higher the deductible amount, lower is the premium for the top-up or super top-up policy.
Under Aditya Birla’s Activ Assure Diamond plan, there is usually have a two-year waiting period in the case of pre-existing disease, and it offers worldwide emergency treatment, maternity benefits, OPD and day-care procedure, and cover airfare for international treatment in the case of critical illness. Moreover, alternative treatments such as homeopathy and Ayurveda may also be covered up to a certain limit.
Anyone from the age of 18 years to 65 years can opt for the product. Here, up to six members of the family including spouse, dependent parents and children can be covered.It is advisable to purchase this plan as it provides an additional health insurance coverage over and above the customer’s base insurance at an affordable cost, since the top-up or super top-up plans are priced relatively lower than the base plan.
Newer standalone health insurance companies who have been set up in the last two to three years have been offering Rs 1 crore and above covers since inception. Manipal Cigna Health Insurance has Pro Health Premier Plan that offers coverage of Rs 1 crore. Further, it includes a worldwide emergency cover up to full sum insured. Similarly, Max Bupa’s Health Companion Plan is also available with 1 crore sum insured and can be easily bought at affordable prices. Some prominent features of the plan include cover for pre and post hospitalisation expenses, share claim facility, restoration of cover and annual health check-ups. Some other popular insurers offering 1 crore sum insured plans include Star Health’s Star Comprehensive, Royal Sundaram’s Lifeline Elite and Digit Health Care’s Maxima Restore Super.
This Article is contributed by Amit Chhabra, Head- Health Insurance, Policybazaar.com.