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Why having two health insurance policies is better than one?

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As cities are coming off lockdown and public spaces from metro stations to cinema halls are reopening, it is easy to feel a sense of normality coming back. But the harsh truth is the pandemic is far from over, and we still need to stay alert and aware. An ounce of prevention is worth a pound of cure goes the adage. We all by now not only understand the importance of health insurance but also of adequate coverage. Therefore, people are going beyond one individual policy that they bought or were provided by their employer. Experts always suggest having a separate health insurance policy as a backup. Here are a few points you should consider before purchasing that second health insurance plan.

1. What are the things to consider while Buying a Second Health Insurance Plan?

If the existing policy doesn’t meet your medical needs due to smaller coverage or there are too many exclusions and capping, then buy a second health insurance policy to fill the gaps left by the current policy. The idea is to get two health policies that complement each other to provide comprehensive coverage and buy two average policies that increase your financial burden. So, judge the second policy on the following parameters.

• Your needs and budget: Begin by analyzing your budget and what kind of possible illnesses you might suffer from due to lifestyle choices or genetic reasons. The second plan should provide you coverage for those illnesses not covered by your first policy and seamlessly fit your budget as you would now be paying extra premiums. So, decide accordingly.  

• The Coverage: Due to medical advancements, affording quality healthcare has become an uphill task as expenses of even a couple of days of hospitalization can run into a few lacs. Your second plan should add up with your first one to give you a significant sum insured.

• Availability of Top-up Plans: The additional Top-up plans always come in handy when you wish to increase your health insurance benefits without paying huge additional premiums. Ensure that your second policy offers the benefits of such add-ons. 

• Lifetime Renewability: Due to a slower metabolism and weakening immune system, the need for health insurance increases with age. Buying a health insurance policy that comes with a lifelong renewability feature is a must so that you don’t need to look for a new plan when you grow old.  

• Switching the Insurance Provider: Your second policy should have a Portability feature. It is an option of switching from one insurer to another without losing the health benefits you have accumulated from the existing policy. This feature is needed if you discover the policy is not satisfactory.

2. How to Buy A Second/Another Health Insurance Policy?

You must pick a policy that gives maximum benefits at a lower premium. You can buy another policy from the same insurer or get it from a different insurance company. Also, you can either do it online or offline. Purchasing a health insurance policy online requires you to visit the preferred insurer’s website, pick a suitable plan and make the payment. In the offline process, you either have to visit their office or get it from a certified health insurance agent. The online process will help you get some discounts as the insurance company can save on agent commissions and pass on that benefit.

3. Benefits of multiple health insurance 

• You get more comprehensive coverage with a higher sum insured.
• You get coverage against specific ailments.
• If your employer provides your first policy, it is a temporary arrangement as you lose the cover the day you quit the job. The second health insurance will, however, continue to provide you with permanent coverage as the policy renewals depend on you.
• When you have multiple policies, the chances of using all of them are less. It means you can earn a No Claim Bonus on the policy that remained unused.
• Last, buying multiple health insurance policies can help you save tax as per section 80D of the Income Tax Act.

Conclusion

A health insurance policy with adequate coverage is significant when living amid a pandemic. So, if you feel that your existing health policy may not take care of your medical expenses, you can always get a second one that meets your medical requirements.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.