Nowadays, there is no need to tell anyone about the importance of health insurance. Everyone knows that even a minor fever and hospitalization can cost you a lot of money. The cost of medical treatment has increased so much. As per the estimates of the financial year 2024, medical inflation in India is 14 percent. This is the highest rate in Asia. Going without medical insurance is like giving up your savings in one go. Therefore, it is necessary to find suitable policies and ensure coverage.
Choosing the right health insurance policy for everyone can be a daunting task. But unlike in the past, insurance companies have moved away from a one-size-fits-all approach. New-age insurance plans are becoming more user-friendly.
In a way that suits the needs of the people and their lifestyle, and that they can control themselves. This means that, like many other things, this is the era of customization in health insurance too. Most policies come with several rider options. Depending on the riders chosen, the premium will be 10-25 percent higher than the basic policy. Let’s learn about some new generation riders.
Sum insured can be increased.
Loyalty or cumulative bonus is a rider included in some modern policies to keep up with the rising cost of healthcare. In this, the sum insured increases every year, whether you claim or not. Some policies allow you to increase the coverage by 10 to 25 percent. There is no additional annual charge for this. For example, ICICI Lombard’s Power Booster rider offers a 100 percent loyalty bonus every year. It is available even if you claim the insurance. Manipal Cigna’s Sarv Uttam policy has introduced a Gallak rider that offers an additional 100 percent sum insured. The bonus can be availed up to 1,000 percent of the basic sum insured.
Claim without limits
The Unlimited Claim Benefit is designed to protect policyholders from high medical expenses. This rider becomes a financial shield in case of prolonged hospitalization and expensive treatments due to serious illnesses or urgent medical needs. The Anand rider in Manipal Cigna’s Sarv Uttam policy is one such rider.
Its unique feature is that there is no claim limit for cancer, heart disease, stroke, and organ and bone marrow transplant surgeries.
That is, suppose the sum insured of the policy is Rs 30 lakh. Even if the treatment costs Rs 1 crore or more, the rider will cover the entire amount. There is no upper limit. While some insurance companies provide this rider validity only once in a lifetime, others provide it on an annual basis.
Unused sum insured can be set aside.
Another benefit for customers is the facility to carry forward the sum assured. This is also the answer to the question of why users should pay for something they do not use. Niva Bupay Aspire policy allows you to carry forward the unused sum assured to the next year. For example, suppose you have taken a policy of Rs 10 lakh. If you use Rs 5 lakh in one year, the remaining Rs 5 lakh will be added to the sum assured for the next year. In 10 years, the sum assured will reach Rs 1 crore. This will help you ensure more sum assured as you age.
Premium can be locked
Typically, insurance premiums increase as the policyholder ages. But age freeze riders ensure long-term savings for those who take out health insurance at a very young age. The premium can be locked in at the age at which the policy is purchased. This means that the premium will not change until the policy is claimed or until a certain age is reached.
Galaxy Health Insurance’s Premium Pros rider allows users to continue with the same premium until their first claim or until they turn 55. This rider not only saves a huge amount of money, but also encourages young people to take out a health insurance policy early.
Protection against hidden costs
The hospital bill does not only include doctor consultation and room rent. A large portion of the cost is non-medical or consumable expenses. That is, bills for gloves, syringes, PPE kits, etc. Although these items cannot be replaced during treatment, they are not included in traditional insurance coverage. To avoid this, companies have introduced policies that cover consumable and non-payable items. For example, Galaxy Health Insurance covers 68 items. The policy also includes admission and insurance processing charges.
For previous illnesses
People with pre-existing conditions like diabetes, asthma, high blood pressure, and obesity usually have to wait up to two years to claim for their treatment. This long wait can be a big hassle for those living with serious problems. New Age policies are also changing this. ICICI Lombard’s Elevate plan comes with an Infinite Assurance rider. It will provide coverage for pre-existing conditions from the 31st day of the policy. The rider is up to 20 percent more than the base premium.
Coverage for two hours
A normal claim is valid only after 24 hours of admission to the hospital. However, there are riders that cover surgeries that only take a few hours. You can claim under such policies even if you spend only two hours in the hospital.
(This only includes some information about policy riders. You should choose the right policies with the help of experts and by studying on your own.)
Modern health insurance plans offer customizable riders to meet evolving medical and financial needs in India.
