I have a basic health insurance policy with a coverage limit of ₹5 lakh. However, I want to upgrade to a better plan to get higher coverage. What is the most effective way to increase the amount insured?
– Name withheld on request
With today’s medical inflation rate, which is growing approximately 10% every year, ₹5 lakh sum insured is an incredibly low amount for health insurance. Thus, your thought on increasing the sum insured amount is a timely and intelligent decision. Enhancing the sum insured amount in the same policy is one of the simplest ways to increase the amount. You can also evaluate the products across insurance companies and port your existing policy to a more suitable plan with an enhanced sum insured by another insurance company. The cumulative bonus which you have earned in your previous policy and all the continuity benefits will be transferred to the new policy up to the sum insured amount as per applicable regulations.
However, the most effective way is to top up your existing base health policy with a new super top-up policy where you can choose to have a deductible of your original sum insured in your previous policy. This will help you save money and get ample coverage. A Super top-up also comes loaded with benefits which are often greater than the base plans.
A super top-up plan is a type of health insurance coverage that provides you with reimbursement for cumulative medical expenses over and above a deductible/threshold amount. It is typically different from a regular health insurance policy. It covers all the hospitalisation expenses only after the sum insured of the standard health policy gets exhausted or you have paid the costs (up to the threshold amount) from your pocket.
Query answered by Rakesh Jain, CEO of Reliance General Insurance