Medical insurance is one of the most important investments you make for yourself and your loved ones. Health issues are increasing by the day, and so are healthcare costs. Keeping this in mind, insurance companies are now offering high-value health insurance policies to help individuals and families manage their healthcare expenses. These health plans offer high coverage and a plethora of benefits to policyholders. They can easily cover skyrocketing healthcare costs, especially of the new-age treatments. Read on to learn more about high-value health insurance policies and their benefits.
What is a high-value health insurance policy?
A high-value health insurance policy is an insurance product with a high sum insured of up to 1 crore. Mediclaim policy offers wide coverage and can cover your hospital bills, pre- and post-hospitalisation expenses, home healthcare bills, daycare procedures and more. The policy also provides coverage for critical illnesses and saves you from the hassles of taking a separate critical illness policy or add-on cover. Since a high-value health insurance policy has a higher sum insured when compared to standard healthcare plans, it can cover advanced andexpensive medical procedures and save you from exhausting your savings.
Features and benefits of a high-value health plan
A high-value health insurance policy offers wide coverage to policyholders and helps cover a range of medical bills. The features and benefits of this health plan are —
Comprehensive coverage: The policy offers comprehensive coverage to policyholders. In addition to your hospital bills, it will also cover pre- and post-hospitalisation expenses, home healthcare, daycare procedures, organ donor expenses, road ambulance charges, and more.
Critical illness coverage: A high-value health insurance policy also covers critical illnesses, such as kidney disease, cancer, heart conditions, and other ailments that require long-term and expensive treatments.
Quality treatment overseas: Depending on the high-value plan your choose it might also cover for medical treatments in foreign countries. Therefore, you can opt for quality treatment and be on the road to recovery.
No sub-limits: A high-value health insurance policy does not have sub-limits on room rent. However, this benefit may vary from insurer to insurer.
In addition to these, the insurance provider may offer other benefits, such as —
Complimentary health check-ups: Most insurers in India offer complimentary health check-ups to policyholders either annually or as stated in the policy terms and conditions. This is an important benefit as it can help in the early detection of a health condition and its timely treatment.
No-claim bonus for every claim-free policy year: If you do not make health insurance claims during a policy year, the insurer will offer you a no-claim bonus. The same is offered every claim-free year and increases for the consecutive claim-free year. For example, if you don’t make claims for 5 consecutive years, you can earn a no-claim bonus of up to 50%. This bonus is generally in the form of a discount on policy premiums.
Income tax deductions on policy premiums: As per Section 80D of the Income Tax Act, you can claim tax deductions on the premiums you have paid toward your health insurance policy.
Disadvantages of a high-value health insurance policy
Although high-value health insurance offers many benefits to policyholders, it has some disadvantages as well. The following are the drawbacks of this health plan.
Expensive: This is one of the main disadvantages of a high-value health insurance policy. The policy has a high sum insured, so the premiums are also on the higher side. Therefore, many middle- and low-income people may not buy this health plan.
Higher co-pay for senior citizens: Although regular health plans also have a co-pay clause for senior citizens, the sum insured is lower, and the co-payment amount is affordable. However, for a high-value health insurance plan, a co-payment of 10% to 15% will mean spending a considerable amount from your pocket during medical emergencies.
Underwriting process is strict: The underwriting process of a high-value health insurance policy is stricter when compared to a standard healthcare plan.
Who should take high-value health insurance?
Health insurance is important for all, including the young and healthy population. A medical emergency can happen to anyone at any time and requires expensive hospitalisation and care. If you have health insurance, you can opt for quality and timely treatment without worrying about the bills.
However, when it comes to high-value health insurance, it is important to exercise caution and consider certain parameters before zeroing in on this health plan. The policy is expensive, i.e., it has high premiums. Therefore, it is wise to buy this plan only if you can afford it and keep it active for continuous coverage.
Before you opt for high-value health insurance, make sure you consider the following —
Your health insurance needs: If you want to secure your health and finances or if there is a family history of critical illnesses, you must opt for a high-value health insurance policy. This health plan will cover a range of your medical bills and save you from dipping into your savings. Moreover, if you are diagnosed with a critical illness covered under the policy, you can opt for the finest treatment without fretting about the expenses.
Your net worth: If you have a high net worth, you can buy a high-value health insurance policy without worrying about the policy premiums. However, if your net worth is low, buying a high-value health plan will cause financial strain. Moreover, if you don’t pay policy premiums on time due to financial constraints, your healthcare plan will lapse, and you will be left without health insurance.
Your savings and future earnings: This is also an important factor to consider if you want to keep your high-value health insurance policy active for long. You must choose this health plan only if you have a steady source of income and adequate savings.
How do you choose the right health insurance coverage?
While looking for standard or high-value health insurance plans for your family or yourself, you will come across many options varying in the scope of coverage and sum insured. Rather than selecting one randomly, you must consider the following factors and then make an informed purchase decision.
Family medical history: If there is a family history of critical illnesses, hereditary diseases, or lifestyle conditions, you must opt for a higher sum insured to cover your medical bills.
Number of family members covered: The policy coverage or sum insured will depend on the total number of family members you cover under the policy. The more the number of family members, the higher should be the sum insured.
Age and health of the policyholders: Suppose you are buying health insurance for yourself. You are less than 40 years old and enjoy good health. In this case, you can choose a basic sum insured of INR 5 lakh to INR 10 lakh. However, if you are above 50 and have pre-existing medical conditions, it will be wise to opt for a high-value health insurance policy.
Policy premium: When you are buying health insurance, it is important to opt for a plan with affordable premiums. While a high-value health insurance policy offers many benefits to policyholders, it is not wise to opt for this healthcare plan if you can’t pay policy premiums on time.
According to experts, the sum insured of your health plan should be at least 50% of your annual income. For example, if your annual income is INR 30 lakh, you should choose a sum insured of at least INR 15 lakh to cover your medical bills.
Healthcare costs in your city: If you reside in a city where healthcare costs are on the higher side, you will need a higher coverage. The coverage will also depend on the type of healthcare facilities you prefer for your treatment. If you prefer speciality hospitals, you must choose a higher coverage for better financial security during expensive medical procedures.
Conclusion
To sum up, high-value health insurance or Mediclaim policy is a valuable investment that can ease your worries during medical emergencies and expensive procedures. However, before you opt for this insurance coverage, make sure you weigh its pros and cons and make an informed purchase decision. While a high-value health plan assures better financial security, the policy premiums are on the expensive side. Therefore, choose this health plan only if you can pay policy premiums on time and keep your policy active.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.