Should you consider investing in a second health insurance policy?

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ABP Digital Brand Studio   |   Published 06.05.22, 12:49 PM

 Health insurance is like a layer of financial security that you get for handling your medical expenses. Health insurance plans are like an investment that you make so that you can safeguard your hard-earned funds from being spent on expenses related to hospitalization, medicines, ambulance, doctor’s consultation, and more. A health insurance policy can also be viewed as an agreement between you and your health insurance company that binds them to cover you financially in case of any medical emergency.

A health insurance plan is not compulsory like a car insurance plan; but in 2020, one must look at it as a mandatory requirement. The ongoing COVID-19 crisis and other lifestyle-related issues have highlighted the importance of health insurance. Online insurance has made health insurance simple to understand, quick to purchase, and hassle-free to claim. *

Besides, the rapidly rising medical costs in India, in addition to the limited coverage offered by a single health insurance plan, have made it necessary for more and more consumers to buy multiple medical policies. Investing in multiple health insurance plans not only provides comprehensive coverage to an individual, but also extends backup protection in the situation of medical emergencies. *

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There are several benefits of having multiple health insurance plans, as discussed herewith:

1) Multiple health insurance plans will give you the advantage of widespread coverage. There are different types of policies in the market that offer enhanced coverage for you and your family. *

2) By buying a second insurance policy, you can have one generic policy and one specific policy. For example, you can have one Individual Health Insurance plan that covers basic hospitalization and another Critical Illness Policy that covers deadly diseases. *

4) A portfolio of health insurance plans can ensure adequate coverage. Depending upon your and your family’s needs, you can buy Individual covers, Critical Illness covers, Family floater plans, COVID-19 insurance, Maternity cover, and more, to ensure adequate coverage. *

5) When you have multiple policies, you can decide which policy to claim when needed. This can help you to keep one policy undisturbed and earn No-Claim Bonus on it. For the uninitiated, the No Claim Bonus or NCB is a feature that gives you a bonus on the sum assured amount when you do not make any claims during the policy year. * Visit the official website of IRDAI for further details.

6) Buying multiple health insurance policies can also help you save tax. You have the option to buy a health plan for yourself, your spouse, and your parents, and avail of applicable tax benefits as per section 80D of the Income Tax Act. The higher the premium you pay, the more tax deductions you can claim up to the maximum limit. * Tax benefit is subject to change in tax laws

7) Buying a second health insurance policy proves useful if the claim on your first policy is ever rejected. Different policies have different terms and conditions. What may be excluded under one policy may be included in another. Thus, a second policy ensures that you have the ultimate financial protection in the event of a medical emergency. *

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Before you go ahead with purchasing a second health insurance policy, remember to keep the following points in mind:

Buy from the same insurer – If you have a health policy from a particular insurance company, then it will be better if you opt to buy the second policy from the same insurer. This helps you create a strong loyalty ground with the insurer. Plus, there is a chance that you may also get some change in rates on the premium if you buy from the same insurer. *

Check the claim settlement ratio of the insurer – If you are buying from another insurer, ensure to check their claim settlement ratio. An insurance company should have a high claim settlement ratio. It helps you understand how dedicated the insurer is when it comes to settling a policyholder’s claims. *

Buy a different type of plan – If you already have an indemnity-based plan, then you should consider buying a benefit-based plan. When you are hospitalised, the regular expenses will be borne by your first plan via reimbursements. Meanwhile, the benefit-based plan can help you deal with non-medical expenses. This may include the charges above the sub-limits, your family’s travelling costs, and so on. *

Always remember that whatever health insurance policies you are buying, make sure to go through the fine print of the policy in detail before purchasing it. Always go for a reliable insurance provider like Bajaj Allianz General Insurance Company, clear all doubts by discussing them with the insurer’s customer support team, and purchase the plan when you have total clarity. *

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Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.