How to port to high sum insured health insurance policies

• Follow

The Covid-19 pandemic situation in India had worsened in the second wave, after a several month long declining trend. As of August 2021, India is the second-most affected country globally by the novel coronavirus. India’s overall tally reached 1.35 crore, surpassing Brazil’s 1.34 core cases, according to data compiled by Reuters in April. While Covid has made people realise the importance of health Insurance, the world has slowly started prioritizing health, which has driven more people to sign up for health insurance policies. Also, with the rate at which medical costs are rising, it is necessary to have adequate health insurance and stay financially protected as the cost of medical treatment for coronavirus or any other ailment can dig a hole in your savings.

Low premium high coverage

With medical inflation rising at the rate of over 50% i.e. from 4.39 per cent in 2017-18 to 7.14 percent in 2018-19, people are slowly getting their minds around the fact that a health cover of Rs 5-10 lakhs is not sufficient. They are now enhancing their cover and porting to high-sum insured policies. The available trends show that most people are porting their existing plans with 1 crore sum insured health insurance plans. As, just by paying 20 % more you get 10 times more coverage than your regular plan with additional benefits and features as well. The monthly premium of Rs 1 crore health insurance plan for a 32-year male living in a metro city costs Rs 600-800, while adding a spouse to the plan brings the monthly premium to Rs 1,100-Rs 1,300.

Affordability because of EMI option

As more and more customers are inclined towards buying health insurance with high sum-insured amid the ongoing pandemic, the payment of premiums on EMI option is now available on these plans. With the flexibility to pay the premium in installments, it becomes more accessible and affordable for the customers. With the availability of paying health insurance premiums in instalments, you can dedicate a fixed amount from your income every month towards it. That way, you do not have to keep worrying about your expenses.

Availability of Zero Day waiting period

Health insurance usually comes with a Waiting period of up to 4 years for pre-existing diseases. This implies that any hospitalization expenses related to the declared ailments like diabetes, high blood pressure, asthma, hypertension, etc can be claimed only after 4 successful years with the insurer. Long waiting period has been one of the key deterrents for people buying a health insurance plan. However, with some new high sum insured health insurance plans coming in the market it is now possible to get your insurance coverage from day one itself. Many insurers like Aditya Birla Health Insurance, Star Health and HDFC Ergo have some plans that come with day one coverage. Aditya Birla Activ Health platinum Enhanced – Diabetes, Aditya Birla Activ Health Essential – Diabetes, Star Health Diabetes Safe Plan A, Star Cardiac Care-Gold and HDFC Ergo Health Energy Gold are some such plans.

Affordability of critical illness

Another reason that people are porting their policies to high sum insured plans is the expensive cost of critical illness like cancer, Kidney failure, Bypass Surgery, Heart Attack. As per Indian Council of Medical Research (ICMR), the number of cancer cases in India could increase by 1.5 million by 2025, up from 1.39 million in 2020. Not only that, the cases of heart diseases are also rising in the country and its prevalence, along with stroke, has increased by over 50 per cent over the last three decades. With that, the cost of hospitalization has increased by approximately 150 per cent for an urban citizen in the last decade. Making it almost impossible for a middle class person to afford them. To address these concerns there are high-sum insured health plans which cover these critical illnesses by keeping you financially protected.

Zero co-payment

Under this feature the policyholder does not need to pay any portion of the hospitalisation bills, no room rent limit which allows you to avail any room category. Making payment for even a specific amount, that too at the time of hospitalization, may not be easy for many policyholders. Thus, getting a policy without any co-pay feature is something you should pitch for. These features are not available in most of the regular plans which is why people are more inclined towards buying high sum-insured policies.

To conclude

With growing concerns of financial preparedness of the entire family requiring hospitalization for Covid, middle-class India has now started realizing the importance of higher coverage. Therefore, making the 1 crore plans popular and a necessity altogether. People often face extreme financial burden due to critical illnesses. And in such a situation porting your regular health insurance policy to a high sum-insured one will offer optimal coverage at times of emergency. Thus, working as a financial shield for you and your family.

(The writer is Head- health insurance policy, Policybazaar. Views expressed are personal)