What is High Value Health Insurance and Its Coverage - Know all About It

Medical expenses and emergencies can knock on your door any time. New viruses and illnesses are surging alongside rapid medical advancements. But if you have appropriate health insurance , these unforeseen medical expenses will be taken care of, and won’t disorganize your household budget.However, the rising inflation rate and the subsequent increase in medical treatment costs only add to your worries. Also, you need to prepare yourself for the doubling of medical expenses in the next decade. That is why a high value health insurance is necessary as it covers immediate medical expenditures and also protects you from the medical costs expected to rise in the future.Till recent times, a typical health cover would range between Rs. 3 to 5 lakhs. But with the consumer demand for high coverage insurance, the policy cover is now ranging from Rs. 3 lakhs to one crore.

• Besides covering common health problems, this insurance offers comprehensive coverage against critical illnesses. Advance stage cancer, organ donation insurance, maternity expenses, baby care, OPD expenses, health checkups, etc. are covered in the high value health insurance.
• Medical treatments in international countries are higher compared to India. If you are required to undergo a medical procedure in a foreign country, it may cost an enormous plunge into your savings. However, a high value health insurance covers your overseas medical expenses as well.
• There’s no sub-limit applied to hospital room rents. But based on the hospital categorization criteria, this feature may apply to low category rooms.

• The foremost criterion is your ability to pay the high premium demanded by a high value health insurance. Before deciding your premium affordability, take into account your age, income, expenses, dependent family members, and other financial liabilities.
• If you are between the age of 25 to 30 when you require lower coverage, choose a health cover between Rs. 5 lakhs to 10 lakhs. With increasing age, you will need higher coverage for critical illnesses and surgical procedures. Between the age of 40 to 50, you can opt for a high coverage between Rs. 10 lakhs and 20 lakhs. As a senior citizen, who is more vulnerable to illnesses, a health cover of Rs. 25 lakhs and over would be ideal.
• If your family has a history of lifestyle diseases and chronic ailments, you are highly susceptible to these health problems. In such cases, it’s prudent to purchase a high value health insurance with comprehensive coverage. Each family member should have Rs. 2 lakhs to 5 lakhs coverage. Assuming you have five members in the family, the accumulated cover of Rs. 20 lakhs to 25 lakhs will benefit your entire family.
• Keep in mind the varying costs across hospitals for similar treatments. The medical treatment costs will also be higher in metropolitan cities compared to tier 2 cities. You can decide the sum assured for health insurance based on the treatment costs and the type of hospital. The treatment costs are lower in public hospitals and hence a cover of Rs. 5 lakhs to 10 lakhs should be sufficient. But for treatment in private hospitals, it’s better to purchase a cover of Rs. 20 lakhs and above.

All in all, you should weigh the advantages of high value health insurance, asses your financial capability and requirements, and then take a decision about purchasing this insurance.

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.