Is a High-Value Health Insurance Policy Really Needed?

Health insurance policies must be purchased as per the medical needs of each individual. Hence, the ideal way forward while buying health cover is to analyse your preferences and requirements before choosing a plan. You must consider factors such as your age, medical history, financial budget, pre-existing health conditions, and more. Once you have figured the aforementioned out, you can compare the policies that are available in the market.

Avoid settling on health insurance covers that provide lesser coverage just to save up on your premium. Thus, see to it that the plan you purchase is both comprehensive and cost-effective at the same time. However, does that mean you need a high-value health insurance plan? Let’s explore the benefits and disadvantages of high-value plans to gauge their need!

Features and Benefits of High-Value Medical Insurance

Check out the key features and benefits of high-value health insurance:

• Offers a Comprehensive Cover: This health insurance offers coverage for critical illnesses, maternity, organ transplant, health checkups, OPD expenses, advanced-stage cancer, and more, making it an extensive health cover.

• Overseas Treatment: There can be cases where the patient has to travel overseas for better medical attention. This plan provides compensation against medical treatment expenses in international countries. Treatments in a foreign country can be expensive when compared to India.

• No Room Rent Capping: A high-value health insurance policy does not come with hospital room rent capping. However, this feature is subject to the hospitalisation criteria, terms and conditions of your healthcare plans, and might only be applicable to low-category rooms.

Drawbacks of High-Value Health Insurance

A high-value health insurance plan also comes with a set of disadvantages. Let’s explore them:

• Higher Premium: For a plan that offers extensive coverage, the policy buyer will have to pay a higher premium. As they are expensive, individuals belonging to low-income groups might not prefer a high-value health plan.

• Higher Co-Pay for Senior Citizens: Though standard senior citizen health insurance policies include the co-pay option, a high-value health insurance plan might ask senior citizens to bear more than 10% to 15% copay.

Who Should Buy High-Value Health Insurance?

Choosing a high-value health insurance policy totally depends on your financial conditions, future earnings, and health insurance needs. However, one must not forget that health insurance is a need. If someone cannot afford high premiums, they can go for a plan that offers sufficient coverage at a lower premium. But if you can afford a high premium, there’s no doubt that a high-value insurance plan is for you. 

For anyone who isn’t a high net-worth individual (HNWI), buying high-value health insurance can be difficult. However, you always have the option of choosing to buy a top-up or super top-up plan to broaden the coverage.

Is a High-Value Health Insurance Policy Really Needed?

Health insurance plans are essential, but a high-value plan needs to be purchased as per your earnings and medical needs. In case a high premium is feasible for you, it will be ideal to invest in this type of policy. Purchasing a 1 crore health insurance policy without having a high net worth could hamper your savings and cause financial stress. In case you want a comprehensive cover without paying a high premium, you can also go for an additional health insurance cover and enhance your regular healthcare plan.

How Much Coverage is Enough?

While shopping for a health insurance cover, you might also come across policies that provide different kinds of sum insured. However, exactly how much coverage is enough? Well, it all depends on the following factors (apart from your financial capacity):

• Family Medical History: In case one or more members of your family suffer from a critical or lifestyle disease or have a history of genetic health conditions, go for medical insurance plans with wider coverage and purchase a plan as soon as possible.

• Access to Super-Speciality Hospitals: The cost of healthcare services differ from hospital to hospital. Basically, the cost for the same treatment will mostly be different in different hospitals. If you prefer going to super-specialty hospitals, you will need to go for higher coverage.

Though a high-value health insurance policy is not for all, do not avoid medical coverage completely. Along with taking care of your health make sure to opt  for an insurance plan that fits your budget and also offers sufficient coverage.