How To Deal with a Bad Health Insurance Plan?

A health insurance policy offers several benefits. Apart from helping you cover the medical expenses, it also helps keep your savings secure and reduce your tax liability in a financial year. It is safe to say that a health insurance policy acts as the ultimate saviour when facing a medical emergency.But, sometimes, the health increase can turn out to be an inconvenience. This is called bad health insurance. Many insurance holders in India face this issue where the policy they once purchased failed to fulfil their medical and financial needs. Many people feel unsatisfied with their health insurance plans.

• Lower sum assured If the policy you purchased is not in line with the rising medical inflation, then during an emergency, the policy may not cover the full expenses, and you may end up paying a majority amount from your pocket.
• Longer waiting period If the healthcare plan you choose has a long waiting period for specific diseases before you can file a claim, the whole purpose of buying a policy will be defeated.
• No coverage for pre-existing diseases A good health insurance plan is the one that covers pre-existing conditions, even if it means paying a marginally higher premium. Without coverage for a pre-existing condition, you may face financial problems during an emergency.
• Limited post-hospitalisation cover Most insurers in India offer post-hospitalisation coverage benefits. But, some plans with a lower premium may have a limitation on the coverage amount. This can prove to be costly in the long-run.

• Increase the sum assured One of the best ways to deal with a bad health insurance policy is to increase the sum assured. You can easily opt for a higher sum assured during renewal and maximise the benefits by paying an additional premium.
• Purchase a top-up or super top-up plan If you feel that the sum assured of your existing healthcare plan is insufficient to cover your family's medical needs, you can opt for a top-up or a super top-up on the current policy. A top-up plan is an additional cover over and above the current plan's sum assured.For example, let us assume you have a policy with a sum assured of Rs. 3 lakhs, and you buy a top-up cover of Rs. 10 lakhs with a deductible of Rs. 3 lakhs.Now, if you file a claim for Rs. 5 lakhs, then three lakhs will be paid from your existing policy, and the remaining two lakhs will be paid from the top-cover.A significant feature of the top-up plan is that you can use it only once in a year and only after you have exhausted the policy limits.The super top-up plan is similar to a top-up plan except that it covers the total hospital costs above the threshold limit. It can be used if you need to be hospitalised more than once in a year.
• Port If you are not happy with the current insurer's services or if you feel the premium is higher than the market standards, you can switch to a different insurer. But, before you port your policy to a new insurance company, you inform the existing insurer at least 45 days before the renewal date of the current policy. During renewal, you can choose a different insurer and enjoy better services.

The key to avoiding bad health insurance plans is to do your research well about the different plans and insurers and compare the policy features with your specific requirements. You must also read the policy papers before you sign it to avoid any unnecessary hassles during a claim.

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.