This discussion revolves around the compatibility of having a health insurance policy from one company and a top-up policy from another. It addresses a specific scenario involving a change in base coverage and the implications for the deductible in a top-up policy. Additionally, it provides advice on adequate coverage for a young individual considering family health insurance.
Compatibility of Policies
It’s common for individuals to question whether they can maintain a primary health insurance policy with one insurer and a top-up policy with another. The answer is yes, but it’s crucial to understand how these policies interact.
Deductible Alignment
In the case presented, the individual had initially purchased a health insurance policy with a coverage of Rs 20 lakh but later switched to a policy with a Rs 15 lakh base cover. The top-up policy taken out has a Rs 1 crore coverage but a deductible of Rs 20 lakh. Since the base policy’s coverage has changed, it raises the question of whether the deductible should also be adjusted. Experts recommend that the deductible should ideally match the current base coverage to prevent any gaps in insurance coverage.
Claims Process
One of the significant advantages of having both policies with the same insurance provider is the ease of the claims process. When both policies are with the same insurer, it allows for cashless approvals in large claims, reducing the hassle of reimbursement claims. If policies are from different insurers, it can lead to delays and disputes, complicating the claims process.
Adequate Coverage
For the individual in question, the current Rs 5 lakh health insurance coverage is deemed insufficient. Financial experts suggest opting for a family floater health insurance plan with a coverage of Rs 1 crore. This ensures comprehensive coverage for potential medical expenses. There are also medical riders available that can provide an unlimited sum insured for a single claim, albeit at a slightly higher premium.
Family Considerations
When considering health insurance for parents, it’s important to choose a policy that offers coverage from day one for pre-existing conditions. This is crucial for managing common health issues like hypertension or diabetes without long waiting periods.
Important Details & Evidence
- Current Health Coverage: The individual’s current health insurance of Rs 5 lakh is inadequate for a young family.
- Recommended Coverage: A family floater plan with Rs 1 crore coverage is advisable.
- Term Insurance Costs: The monthly premium for a term plan of Rs 1 crore is typically between Rs 1,000 and Rs 1,200, making it accessible.
Final Takeaways
In summary, while having a primary health insurance policy and a top-up policy from different insurers is permissible, it is essential to align the deductible with the base coverage to ensure comprehensive protection. Consolidating policies with one insurer can simplify the claims process. For individuals and families, adequate health coverage is crucial, and opting for a higher coverage plan is recommended. Additionally, when considering health insurance for parents, prioritize policies that cover pre-existing conditions from the start.
