Home Health Why Updating Your Health Policy Periodically Matters

Why Updating Your Health Policy Periodically Matters

Source: fiscalnote.com

The Coronavirus pandemic and its repercussions on our health and economic status have shown once again that life is uncertain. One moment is different from the next, and one cannot be complacent by the good fortune they enjoy today. It does not do to not plan for the future. It is irresponsible to not set aside adequate savings and make investments for yourself and your loved ones.

The first step is to buy life and health insurance that covers you and your family members. This article details the importance of buying health insurance and investing in a good super top up plan to support the primary healthy policy. For more health insurance related information, check – https://www.manipalcigna.com/

When you bought your health policy

Source: policymedical.com

Buying health insurance is one of the most sensible decisions you can take for yourself and your family in these troubled times. Life is uncertain, and there is no way to predict what the next day or even few hours will bring. You and your family enjoy good health today. But what of the future? What if one family member contracts COVID or some critical illness?

What if another gets injured and needs long hospitalisation and physical therapy? Do you have the financial wherewithal to pay for all the expenses out of pocket? Meanwhile, do consider that the already high costs of treatment in India rise exponentially every year. So by the time you need to pay for the medical emergency, you may have to pay much more than anticipated.

These were your reasons for buying a family health insurance policy. When you bought the plan, you took a certain sum assured into account and since then, have been paying your premiums diligently every year.

Time to accommodate new changes in life?

But life changes constantly, and since the time you bought your life insurance plan, a lot has changed on the personal front. You may have got married or had your first child. Your parents have gotten older and may have more health problems than they used to. Annually, you are spending more money on raising your family and paying all household expenses. You also need to save more money for the future.

You are now realizing that the sum assured you had taken on your health plan is quite inadequate. Especially if you have to admit one of your parents to the hospital, then there is less or no money left from the sum assured to pay for treatment or hospitalization of any of the other family members in the same year.

Updating your policy matters

Source: hklaw.com

At this juncture, you can do two things:

1. Enhance the policy coverage when you renew the family health insurance policy. Most prominent health insurance providers in India allow you to enhance the policy coverage amount at the time of renewal. Do check the corresponding rise in premium amount to accommodate the change.

2. Buy a super top up plan to supplement and complement the coverage on your primary health plan. Super top up health insurance pays over the deductible of your primary health coverage in one year when the sum assured on the latter is completely exhausted. It is not expensive and is a useful tool to use when there are multiple hospital admissions or treatments to consider. It is especially useful at a time when the threat of Coronavirus is imminent and may strike family members one by one.

Super top up insurance plans – Why they matter

Super top up insurance differs from top up health policies in one fundamental aspect: while top up plans pay for one more hospitalisation in the year after the base sum assured of the primary health plan is exhausted, super top up plans offer you the opportunity to undergo multiple treatments and hospitalisations.

This is important for families that are bereft by COVID, or which have aged parents with several illnesses that require treatment, or where a family member has been detected with a critical illness. For expert advice on health insurance plans check our – https://expertateverything.in The deductible on the super top up plan is paid once a year.

Reviewing insurance policies

Source: baburamdangi.com.np

Apart from the threat of health problems in the future, it is important to account for changing lifestyle and increased expenses as life goes on. Your income increases, and you like to affect changes to your lifestyle.

Thus, with every change and added expense, you need to review your finances and investments accordingly. Review your insurance policies once a year. Whether life or health insurance, their sum assured must account for the needs of your family in every way.

If they don’t, their coverage must be enhanced at the time of policy renewal. The increase must account for future inflation and living expenses. Add every new member to the family as and when required, and increase sum assured and include important riders and features as needed.

Invest in children education plans to pay for the high cost of future education for your child. The plan pays up on the event of the child attaining the age of 18 years, so you don’t have to expensive costs out of your income or savings.

Invest in term life insurance for yourself and your spouse so that the family’s needs are adequate taken care of in your absence. Increase the sum assured based on your family’s expenses, any loans you may have taken, future medical costs, children’s education costs, etc.

Apart from taking care of the family’s needs, you must plan for your retirement, too. Look up suitable annuity plans that can pay for your needs post-retirement. You must also have a separate savings fund that pays your retirement expenses.