With so many insurance companies out there, offering a range of policies, how can you make the perfect health insurance portfolio? If comparing the multiple terms of policy seems like a daunting task, then we provide some key insights and some easy pointers for making the choice simpler for you.
To choose the best health cover, you need to take into account the lifestyle and demographic factors. The stage of life you are in has an immense impact on the health insurance portfolio. For example, the health insurance needs of a person who is 30 years old and single would be very different from a person who is 35 years old and married or has dependent parents to look after. Here are some of the factors that you need to consider while choosing the perfect health insurance portfolio.
Factors to Consider for a Health Insurance Portfolio
Age and Family Size
Your health portfolio will vary based on your age and marital status. When you are younger, you are expected to have fewer illnesses or pre-existing health conditions. This is why the health insurance policy for a person who is 25 and single can include a standard standalone hospitalization cover. This policy can sufficiently cover the inpatient hospital-related treatments.
However, if a person is 30 and married, then the health insurance portfolio can be upgraded to a family floater policy. The benefit of such a policy is that it not only provides a perfect health protection for the person and his spouse, but can also include and cover the children later on. It is important to remember that the premium of the family floater plans may differ based on the number of members to be covered.
When a person is 35, it is recommended that the sum insured of the policy be increased with a top-up cover plan for Rs.5 to 10 lakhs. At this stage of life, not only does a person’s earning capacity increase, but his medical risks increase as well. This is when a top-up cover can be handy.
25 and single —- Hospitalization cover
30 and married —-Family Floater Policy
35, married, with children —- Top-up cover plan
Do you have dependent parents who are retired and need to be covered as well, or do they have a health insurance policy of their own? With health care costs increasing manifold, senior citizens can make quite a dent in their savings if they have to pay the healthcare expenses on their own.
At around 30 years of age, a person needs to check if the parents who are about to retire or already retired have a health insurance to take care of the growing medical costs.
If a retired parent is/was a government employee, then they have “Central Government Health Scheme” (CGHS) which provides comprehensive health care facilities even after retirement. In such case, a simple top-up cover to the CGHS cover would suffice. There are many corporates and large MNCs that provide a retiree policy under the group health cover. This has to be figured earlier in life rather than later because as the parents age the lesser are their chances of getting a cover. If not, then depending on the stage of life you are in, you would need to ensure that they are covered as well.
The occupation of the person has an impact on his health insurance portfolio. For example, for a sales professional whose job involves traveling a lot, a personal accident policy is a must-have. This health insurance policy not only covers death and permanent disability, but also provides a cover for the loss of income for the period that a person is unable to go to work due to the temporary disability caused by accident.
Pre-existing or Hereditary Health Problems
If you have a family history of certain medical ailments, such as high blood pressure and diabetes, then you should opt for a critical illness cover early on in life. Most companies have very strict underwriting guidelines or norms for acceptance under critical illness policy since these are benefit policies for which one-time lumpsum amount can be paid out. You, therefore, need to take the policy when you are healthy so that there are no acceptance issues.
With this policy, you can insure yourself against the risk of serious health problems. Remember that in case of a critical illness cover, the younger you are, the lesser your premium will be. For example, an additional critical illness policy premium will be different for a person aged 25 years than for a person aged 46 years, as the chances of developing an ailment increases as we age.
For more information on how to make the best health insurance portfolio, visit our health insurance page!
This article was authored by Dr. Renuka Kanvinde, Assistant Vice President, Health Administration Team, Bajaj Allianz General Insurance Co. Ltd.