Higher Sum Insured A Must While Picking Your Health Cover

In India, health insurance is not a mandatory requirement like motor insurance. A majority of people consider individual health insurance an unnecessary expense and prefer relying on either their employer cover or personal savings for meeting a medical emergency. Even those who buy health insurance usually choose an inadequate cover. However, Covid has resulted in increased awareness amongst the general public on the importance of health insurance. 

Following are the key reasons why you should consider choosing an insurance plan with a higher sum insured amount - 

Helps you meet sky-rocketing medical costs - Needless to say, the cost of healthcare in India has been increasing substantially in the past few years. This trend is expected to continue in the coming years as well. Having a health insurance plan with a high sum insured enables one to avail of the right medical treatment without worrying about the expenses. 

Keeps your savings intact - A health insurance plan with a high sum insured is the ultimate key for maintaining financial stability. In times of a medical emergency, you need not liquidate your savings to meet the healthcare expenses if you have a health insurance plan with an adequate sum insured. Thus, a health insurance plan helps you save your hard-earned money for your child’s education, marriage, or invest it in different investment instruments to appreciate your wealth. Therefore, it is essential to create a balance between your investment and insurance so that the latter can fulfil your requirements without disturbing the former. 

Coverage for the entire family - A family floater health insurance plan with a high sum insured amount ensures that enough coverage is available for each and every member of the family against the payment of a single premium. With the right sum insured amount, you will not fall out of coverage even if there are multiple claims in the same year. 

What all is covered under the health insurance plan? 

The coverage of a health insurance plan varies from insurance company to insurance company and also depends on the type of plan chosen. However, usually, health insurance provides coverage for the following, and thus, it is wise to have a high sum insured so that you can keep yourself and your family covered in all possible emergency situations - 

1. In-patient hospitalisation - It includes insurance cover for different medical costs such as doctor’s fee, nursing, room rent, medical tests, and so on. 

2. Pre-hospitalisation and Post-hospitalisation - It provides coverage for medical costs incurred by the policyholders for 60 days before hospitalisation and 90 days after getting discharged from the hospital. 

3. Day care procedures - These are medical treatments that are completed within 24 hours due to technological advancement and do not require hospitalisation. 

4. Domiciliary hospitalisation - This provides coverage for the medical treatment taken at home on account of the unavailability of a hospital bed or on the advice of the doctor. 

5. Emergency ambulance - The  policy covers the expense of an emergency ambulance that was incurred for the transportation of an insured member to the hospital during a medical emergency. 

6. Organ donor expenses - Health insurance plans cover organ donor expenses as well. This helps you maintain your peace of mind in case of a major organ transplant surgery.

7. AYUSH treatments - A health insurance plan may also provide coverage for AYUSH systems of medicines based on the notion of natural medicines. These include Ayurveda, Yoga, Unani, Siddha, and Homeopathy in order to cure specific diseases and help you stay healthy. 

8. Critical illnesses - The plan also provides coverage for critical illnesses such as cancer, heart attack, lung failure, liver failure, open chest CABG, bone marrow transplant, aorta graft surgery, paralysis.

In the short term insurance policies with high sum insured may come across as a little expensive, but in times of a medical emergency, they help avoid financial crisis. The industry has also come up with innovative products which allow the insured to increase coverage at affordable rates - top-up policies are an example. A combination of a good base policy and a top-up policy significantly enhances coverage at affordable rates. You must consider your age, current health condition, family medical history, and lifestyle habits while choosing the sum insured of your health insurance plan to ensure the availability of enough coverage and keeping yourself and your family shielded against all possible emergencies. 

The author is the CEO of InsuranceDekho

DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.