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Insurance Article

Is it time to upgrade your health insurance cover?

July 01 2016
Is it time to upgrade your health insurance cover

According to the National Sample Survey Office (NSSO), hospitalization cost has increased by 10.7% from the year 2004 to 2014. Such a steep rise in healthcare expenses needs introspection of your existing health insurance policy. To help you decide and assess the need of sufficient health cover, check the following points:

1. Evaluation

It is of utmost importance to know your actual needs and then decide the amount that you must keep aside for insurance. Hence,

  • It is necessary to take into account family history for any illnesses like diabetes, heart ailments, cancer, etc. that could affect you at any point in life.
  • The policyholder who holds a family cover needs to include every member’s existing health issues and anticipate the ones that may arise in the future.
  • For a couple planning a baby, it is wise to consider the expense of maternity and check whether it is covered under the existing policy.
  • Note the expenses you incurred in the previous years and then decide on the sum assured for the next term.

2. Rising Costs

Even a decent health cover might prove insufficient in overcoming the high medical expenses. Supporting this fact, consider the NSSO report, which states that in the first half of 2014, Indians living in the urban area spent an average of ₹24,436 in private hospitalization and treatment.

This also means that an individual with ₹2 lakh insurance policy might have to pay out-of-the-pocket if he/she falls ill for a long time or has to undergo prolonged treatment. Hence, raising your cover in accordance with the upsurge of expenses is vital.


3. Critical Illnesses at Early Age

According to data from a survey, cancer-related claims have risen by 12% over the last 3 years. Primarily, policyholders in the age group of 41-66 have filed these claims. Also noteworthy is the fact that 65 million Indians have diabetes from the age group of 13-70. This clearly shows the need of extensive insurance cover right from early age.


  • An insurer can deny you insurance if you are diagnosed with a serious ailment. Hence, taking a health cover in your youth (25 to 30 years), while you are still healthy is fruitful.
  • Opting specific illness products or top-ups along with your regular insurance plan can help in striking an optimum balance.

4. Insurance Awareness

As per a study conducted on Understanding Lifestyle and Attitude towards Health of Indian Millennial in 2015, many citizens are unaware of the various aspects of health insurance. This keeps them from enjoying maximum benefits of a health insurance policy.

The key points to note regarding a health policy are:

  • Insurance covers come with various sub-limits that decide what type of facility you can avail. Having a whooping insurance cover does not mean a free access to all types of services.
  • Even if your employer provides health insurance, remember it is a group cover and hence not all the ailments and treatments will be covered under it.
  • Reading your policy documents and understanding the facilities available to you not only save resources but also proves useful in critical times.

If the above points make you dubious of your existing health cover plan, opt for a comprehensive insurance policy to cover your healthcare needs.

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