When is the right time to re-evaluate family health insurance plan?

The debate around healthcare has gained considerable momentum over the years. However, the Covid-19 pandemic triggered another debate around healthcare affordability for the Indian middle class. Lack of enough medical infrastructure caused significant chaos. People struggled to get ICU beds, prescribed drugs and oxygen cylinders during the peak of Covid 2.0 in May-June this year. As a result, insurance products have become really popular once again. It is an undisputed fact that comprehensive health insurance is a must-have investment today.

Most people tend to somehow purchase a family floater health insurance policy and consider it as sufficient. This is because people believe their family conditions to remain constant throughout. However, given the sheer unpredictable nature of life, your family’s medical needs are bound to undergo all kinds of changes. Moreover, you may simply feel dissatisfied with your existing policy over time.

Thus, one must periodically review the features and benefits of their health insurance plans to ensure sufficiency vis-a-vis your present lifestyle conditions.

Benefits of timely review

Re-evaluating the current sum insured amount of your health cover is extremely crucial at regular intervals of life. As the family members grow old or new people join the family, the circumstances change. A family floater bought for a family of three in 2010 may not prove worthy for a family of four in 2021. A timely review of the insurance portfolio can give you the much needed red flag to increase the sum assured that is sufficient to cover all members of the family as per the revised medical requirements and inflation in mind.

In fact, re-evaluating health insurance plans can often lead to monetary benefits as well. You may come across a much better insurance product at a reasonably lower price than your existing policy. The insurance industry is constantly evolving. It aims to bring maximum people under its shelter. This has resulted in a variety of pocket-friendly policies that probably didn’t exist back in the day. Some insurers also offer a kind of family discount basis certain terms and conditions.

Just as with any other long-term investment, health insurance demands frequent reviewing to get cost-effective products that suit your family needs.

Righ time to review?

While it’s always advised to constantly read up on new discoveries in the field you’ve invested in, there are certain milestones in one’s life that definitely demand re-evaluation of the family health insurance policy. Some of them include your marriage, birth of kids, ageing parents, a major disease or accident and even when you witness a massive salary hike.

All these situations bring about serious financial changes to one’s otherwise routine expenditure. Thus, reviewing your insurance policies at this juncture becomes equally important. Apart from these major lifestyle changes, one can also review the insurance policy if they’re unhappy with the services of the current insurer. The reason could be high premiums, limited network hospitals or a better deal outside.

One must know that long-term investments remain relevant in the long term only when you modify them periodically. There is no point in sticking to an age-old family insurance plan which has no significance in today’s world.