How Health insurance add on covers can help you hedge rising medical cost?

Looking at the standard health insurance plans available in the market today they are generally not up to the mark to help you cover the rising medical cost. In case when there is a need for long sustained medical treatment due to critical illness the total coverage may not be sufficient enough. Let’s take an example, suppose your health insurance cover is Rs. 5lacs .In case of a medical emergency you are suppose to go through a hospitalization of 10 days. Looking at the current medical cost the ancillary expenses like room rent, medicines, doctor fees etc would be in tune of Rs.1.5 to 2 lakh and in a case like this you are actually left with a very minimal amount of cover to claim for the rest.  This means that rest of the money you have to pay out of your own pocket.

Considering the ever rising expenditures involved in medical emergencies add-on covers are beneficial looking at the long term view. Other than this add-on cover comes with the convenience of common underwriting, one point renewal and endorsement of both coverages. Some of most effective add-on covers which can supplement your standard Health Insurance plan and can make it more effective in long term are:

  1. Critical illness cover: You might say that your existing policy already covers that but with a waiting period of at least 2 year. Looking at the way how this particular add on covers works for you is that under this the policyholder get a lump sum benefits for certain pre-defined critical ailments. The waiting period is very less something like 60 to 90 days .In case the person insured is at an age when he/she needs most medical attention the critical illness covered under a standard policy will not be sufficient enough. Plus cases where the policyholder may fall in a situation of loss of pay due to sustained medication this particular add-on can act as a true beneficiary. The add-on would be more effective for covering big ticket cost of surgery due to critical illness and your base cover would always stay intact with you for regular claims.
  2. Personal accident cover:  A personal accident cover hedges you from the risk associated with death or disablement caused directly and solely due to accidents. If are into a profession which requires you to travel the most , an add-on cover like this can act as a real super hero for you. Generally available in two forms of sum assured versions either Rs.10 lakh or 20 Lakh.
  3. High deductible insurance cover: This is best of salaried individuals. In most of the case employer provides you with sum assured under a group policy. A policy under which all your co-workers are also covered. The add-on is also called the top up cover. This is quite helpful in situation while making a claim and it crosses the limit under your employer’s policy. Under this you can actually set a threshold under existing policy and post which rest of the claims would be covered under this add-on.
  4. Hospital cash cover: Other than the rest of costs like medication, doctor fee etc you might also look at financial assistance during your stay in the hospital. This particular add-on cover which provides you cash reimbursement on a daily basis if the hospitalization is due sickness, accident or involving regular day care. The plans that exist in the market today generally offer a cash amount ranging from Rs.1000 to Rs.3000 per day for maximum period of 10 days hospitalization. The number of days would vary from insurer to insurer.
  5. Room rent waiver: All standard plans offer room rent claims but they are subject to limits and the type of rooms you can select. Plus the room rent claims settled by your insurers as a percentage of actual cost spent would also effect the claim coverage for other types expenses involved. To handle a scenario like this it is better opt for a Room rent waiver add-on. Typically it removes all the limits that are imposed under your standard plans.

Other than the above mentioned add-on there are few other type of add-0n covers like cover for maternity and new born baby expenses, cost of alternate medication and compassionate visit which is most effect if are staying out your home town alone. The add-on cover you opt should be done with respect to the requirement you have. Though it would hardly affect your standard policy premium in terms of cost but to get a better value from your policy all these specific add-ons are a necessary. While planning for health insurance cover online do check out the various add-ons available and plan it as per your requirement .

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