A question arises in my mind that Am I able to pay the heavy bills of Hospital at the time of emergency.?
Should I go for high health insurance ?
The rising cost of treatment ,procedure and medications along with advancement in medical science.People fear is not wrong that their health insurance of Rs 5 lakh or 10 lakh will cover the medical emergency or not.People wipe out to see the medical bills when their savings and investments won’t enough to manage when medical emergency.This fear make the man to think about their families .
Reason to go for high health insurance cover
Most insurance companies offer a maximum health cover of only Rs 10 lakh. Example of an organ transplant, say, of liver or lung, can cost Rs 20 lakh to Rs 40 lakh. Even the new medicines for cancer and other serious illnesses cost Rs 500 upwards per tablet...So in that case it’s not possible to take care of patient and charges of medical treatment.
Health insurance policies
· Religare Health recently launched Care-A health insurance policy that offers sum insured of up to Rs 60 lakh, the highest offered on any health insurance product in the country.
· ICICI Lombard and Max Bupa Health Insurance-It’s already have products that offer health cover of up to Rs 50 lakh.
"Due to advancement in technology and medical science, many new procedures have been adopted in critical surgeries and treatment of severe illnesses, which come at extra cost. Also, a change in lifestyle is encouraging individuals to take treatment in super-luxury hospitals. These factors, along with the inflation in healthcare, are forcing individuals to look for enhanced sum assured," says Pankaj Mathpal, certified financial planner and managing director, Optima Money Managers. "
Person with adverse family history should go for a higher sum assured if they can afford the premium. Wealthy people looking for advance treatment and services in super luxury hospitals can also go for such large sum assured," says Mathpal.
Numbers of people are increasing opting for medical treatments outside India for critical illnesses. Some of these health insurance products fulfill to that need, too. For example, Care covers costs related to medical treatments outside India for individuals opting for a sum assured of above Rs 50 lakh. "
These policies provides coverage for hospitalization abroad for cancer, benign brain tumor, major organ/bone marrow transplant, heart valve replacement, and heart bypass surgery, for a sum insured of Rs 50 lakh and Rs 60 lakh," says Mahavir Chopra, head, e-business, medimanage. Com, a health insurance advisory firm.
Everyone need high health insurance?
Insurance Experts are fully agreed that a cover of Rs 10 lakh may not sufficient for treatment of any critical illness, especially in the metros. Gaurav Mashruwala, a certified financial planner, says, "People won't have any choice but to visit premier hospitals if they contract any serious illness. In Mumbai, a room in these premier hospitals costs Rs 5,000 to Rs 7,000. A room in the ICU would cost at least three to four times the normal room." According to him, if an individual can afford the premium, he or she should go for the maximum health cover.
For many people affordability could be an issue for example, the premium for a health cover of Rs 50 lakh can be in the wide range of Rs 27,000 to Rs 50,000 for a 35-year-old individual, depending upon the product and the number of family members covered by the policy. The renewal premiums will be higher after factoring in inflation and healthcare costs.
"These policies do not have a claim-based loading at renewal. However, the premium of every policy increases after 1-2 years because of inflation and rising healthcare costs. So you have to factor in the potential hike in premi-um when you budget for such high-value policies," says Suresh Sadagopan, a certified financial planner with Ladder 7Financial Advisories.
"I would advise a client to go for the maximum health cover. If affordability is an issue, I would ask them to strike a balance," says Mashruwala. Attracting attention a balance is very important because one shouldn't channel all the savings towards health insurance premium.
"From a financial planning perspective, risk is only one of the components that include term insurance, health insurance and home insurance. So a retail investor cannot afford spending Rs 30,000 only on a health insurance policy when he/she has to think about building a retirement corpus, saving for child's education, etc. And the premium will only go up as he ages," says Harshvardhan Roongta, certified financial planner, Roongta Securities.
If you can't afford the premium, you should try to add a top-up health cover to your existing Rs 5 lakh or Rs 10 lakh cover. The maximum top-up cover available in the market today is Rs 15 lakh. "If you are comfortable getting treated in tier-2 hospitals, a cover of Rs 10-15 lakh in an urban area should suffice," says Roongta.
Mashruwala suggests another way out for people who can't afford the premium for high covers. "You should start building a corpus of Rs 5 lakh for medical emergency. You can use this corpus for treatment of your minor illnesses."