Benefits of Multiple Health Insurance Plans

Sometimes, it can be an excellent idea to buy a second health insurance policy if you feel that your existing policy falls short in health coverage or if a certain disease is excluded from the policy. A second health policy that covers the shortcomings of your existing policy can be purchased to make your total health coverage more robust.

Claim Rejections

Having multiple health insurance policies can be beneficial in certain situations. For example, if your policy claim is rejected by one of your health insurers, you can always apply to your second insurer and it may be approved by the second insurer. Thus, multiple health policies minimise your chances of getting your claim rejected. This will help you avoid paying the entire claim amount out of your own pocket.

Higher Coverage

The insured amount for multiple health plans basically add up effectively giving you a larger health cover. The premiums for two different health plans also end up being more affordable than that of one policy with a higher coverage amount.

Diversification

Another important benefit of buying multiple health insurance plans is the opportunity for diversification. You can buy a pure health insurance plan as a primary policy and then go ahead and buy a health ULIP (Unit Linked Insurance Plan). The latter consists of a fund value that can keep growing as you invest, in addition to the health insurance aspect. When your claim amount is lesser than the insured sum of either policy, you can choose to claim from any of the two policies.

Critical Illness

A popular way to go is to buy a comprehensive health cover , and also buy an additional critical illness policy. Critical illnesses covered under such a policy are not usually covered by a regular comprehensive health plan. Such a system can ensure that all your bases are covered with regards to your health.

There is a contribution clause in every health plan that details how you can claim for multiple policies . Read the terms of both your policies carefully to understand this clearly. Always remember to disclose the details of all your active policies to your insurer during the claims process.Check whether premiums for two different plans are more affordable than the premium of a single plan with similar insured sum. Buy two policies only if the price difference is significant and if you’re getting better coverage.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.