Health insurance guide for first time young buyers – The Financial Express

The advantage of having an individual or a family health insurance is that you can decide the sum insured amount and opt for add-on covers as per your requirements.

With respect to our health, the past two years have revealed that multiple family members can fall sick severely at the same time and in the same year, that being young doesn’t protect one from deadly viruses, and that heath treatment cost is skyrocketing.

Considering these aspects, “it is prudent for the young population of the country to also invest in a health insurance policy to financially protect themselves against any healthcare-related expenses,” says Rakesh Jain, CEO at Reliance General Insurance. 

Taking a health insurance plan when you are young and healthy has its own benefits. For instance, insurance premiums are charged basis the policyholder’s current age and existing diseases. Hence purchasing a policy when young and without any diseases will offer you a lower premium. It will also ensure wide coverage. The mandatory waiting period for certain ailments such as cataracts, knee replacement will be less for younger policyholders. 

However, Jain points out, “If you have a company-provided health policy which generally comes with a standard sum insured of Rs 3-5 lakh and many exclusions or co-pays, you need to consider whether the amount is enough to cover healthcare costs for you and your family if all taken ill in the same year.

“One should also factor in the medical inflation which is rising at a rate of 15 per cent every year,” adds Jain.

Advantages

The advantage of having an individual or a family health insurance is that you can decide the sum insured amount and opt for add-on covers as per your requirements. Additionally, unlike company health policy, your personal healthcare policy will be active even if you change your job or discontinue employment. Hence, Jain explains, “invest in an individual or a family health insurance to ensure quality healthcare services for you and your family without having to worry about the medical inflation.”

What should first-time buyers do?

As a first-time buyer, experts say one must consider a few things before purchasing an individual or family health insurance policy. Jain says “Sum insured should preferably depend on your salary, the city you reside and history of family illnesses.” For instance, if you have a family of 4 people, then it is advisable to get coverage of at least Rs 15 lakhs-20 lakhs to eliminate any financial burden. 

Also look at factors like the network of hospitals of the insurer, availability of a cashless facility, health conditions that are excluded from the health cover, and add-ons offered by insurers. “It is important to consider all aspects big or small before finalizing a health insurance cover that will give you maximum protection,” says Jain.