Health insurance has shifted its nature from an elite-class privilege to a necessity for all in the post-pandemic era. With the health of individuals in the limelight, a financial shield to cover these treatment costs is essential. What better way than a health insurance policy? The soaring treatment costs make it necessary not to overlook adequate health insurance cover.
Most buyers do not realize that their health insurance policy is for future treatment, and choosing a policy coverage keeping in mind the current healthcare costs is futile. So, it is essential to select a plan that accounts for the rising medical inflation. While such a situation is a case of underinsurance, it must be avoided. Here are some signs that you must look out for to avoid being underinsured:
1. Relying solely on a group insurance plan
If you are employed in the corporate world, there are chances your employer provides group insurance coverage for you and your family. However, such group plans have limited coverage. The coverage amount ranges between ₹3 lakhs to ₹5lakhs. While it may be enough to tackle a minor procedure for one person, the second case of hospitalization would mean no further coverage is available. Considering the group plans can be extended to family members, such coverage is inadequate most times. Hence, you would require payment from your own pocket despite having an insurance plan. Further, the coverage ends with either retirement or a change in your employment. Thus, again leaving you exposed without a health insurance plan. Choosing health insurance plans for the family in addition to the group health cover is an intelligent alternative to avoid any loss of safety net for unpredicted medical exigencies. *
2. Not increasing the coverage with rising medical costs
Another sign to look for is that you have not enhanced the policy’s assured sum despite inflation in general prices. It is essential to start investing in health insurance early in life. This gives you the benefit of a pocket-friendly premium for a higher sum assured. But as prices increase, it is also recommended you consider the family medical history and revise the sum assured. While it can be done by either upgrading the current policy with a top-up or super top-up plan, purchasing a new insurance cover can also be carried out. In some cases, for elderly individuals at high risk, critical illness insurance is an intelligent alternative. Thus, with increasing treatment costs, it is best to enhance the sum assured to avoid underinsurance. *
3. Change in lifestyle but no revision in insurance coverage
Higher-income brings about lifestyle changes. It is not just for you, but also for your family. These changes often adversely impact your health, leading to lifestyle ailments. While lifestyle-related diseases were not expected when you first bought your policy a couple of years ago, it is now a frequent occurrence in most people. Hence, increasing your insurance coverage as your lifestyle changes is also critical. *
4. Uninsured family members
Uninsured family members can either be newborn or elderly individuals who have crossed the coverage limits in your family health plan. Ailments to either age group will require you to spend lakhs of rupees for their treatment. So, it is best to include babies early in family health plans while seeking separate senior citizen policies for elderly beneficiaries. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. These are some reasons that make it a red flag to look into your insurance planning and its adequacy and should be addressed on priority.