As the growing threat of Omicron, the new variant of Covid looms large in the collective psyche, it’s time to revisit its health insurance policy. Scientists fear that the Omicron variant could affect even vaccinated patients.
With this in mind, it is important to make sure that your health insurance policy comes to your aid in the event of a future medical emergency. It also helps to upgrade your medical insurance policy due to changing lifestyle, health conditions, and the spread of new illnesses.
Here are some of the aspects that you should consider when considering your health insurance policy.
Review the sum insured
During the first waves of the pandemic, many people ended up spending thousands of rupees on hospitalization and oxygen supplies, especially during the second wave. The bills have reached Rs 10-15 lakh and in some cases more. It is therefore important to review your insured capital.
âRegarding the amount of insurance, it is better for a family of four to have coverage of at least Rs 10 lakh. If your current policy is less than this value, you should seriously consider increasing it to avoid a significant erosion of your savings, âsays Chenthil Iyer, Founder and Chief Strategist, Horus Financial Consultants.
Review your family floating plan
The most important parameter for considering a family floating plan is to analyze the risk of illness and the associated medical expenses. “In the wake of the covid that can infect all family members together, the insured must calculate the expenses for the whole family,” said Naval Goel, founder and CEO of PolicyX.com, a portal of insurance comparison. A family float with a low sum insured may not be enough.
In the event that a policy does not include a child under the age of five or provides an insufficient sum insured for all members, the policy should be carefully reviewed and the sum insured adequately increased.
Alternatively, one can also purchase several floating fonts. Each policy can cover different family members so that there is adequate coverage for everyone. For example, in a family of four, one policy might cover the father and one child, while the other might cover the mother and child. Elderly parents may have a separate policy as the age-related pricing may be different.
Co-payment and sub-limits
The co-payment is the percentage of the amount that the policyholder agrees to pay out of his own pocket at the time of treatment. âMedical costs can range from thousands to lakhs; therefore, the policy should offer minimal or no co-payments, as it may be difficult for the policyholder to pay out of pocket if they are not ready or prepared with additional savings, âGoel adds.
When it comes to sub-limits, different policies offer a variety of caps on different treatments and facilities which can sometimes be a challenge or risk for the policyholder. So, opt for minimum sub-limits.
âIn the post-pandemic era, it is recommended to opt for a policy that has no sub-limits. For example, your policy may have a limit of Rs 5,000 or Rs 10,000 depending on your sum insured for room rent per day. We have seen how room rents have increased during the pandemic in some private hospitals. Therefore, even if you have to pay a higher premium, it is best to renew in a policy without such a cap or sub-limit, âadds Iyer.
There are comprehensive health insurance plans that have no co-payments or sub-limits and offer full cashless services.
Finally, you need to seriously consider the quality of service you get from a business. If you are not satisfied, you can take advantage of the portability option to transfer your policy to another company of your choice at the time of the review. For this you may need to notify the new business a few weeks before the renewal date.