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Should you buy health insurance for higher amounts or add a supplemental policy?

If you are unsure whether to buy a health insurance policy for a higher insured amount or to choose a base insured amount in addition to buying an additional plan, here is a comparison that can help you understand the difference between the two.

Both options have their own pros and cons.

A. Choose health insurance with a higher insurance amount

Higher amount health insurance plans are more expensive to insured, but provide more facility to claim compensation under the policy. Amit Chhabra, Head of Health Insurance at, said: "You can easily claim the full amount of the insurance. Apart from this, if you want to transfer your health insurance policy to a different insurance company, the total amount insured is will transfer to the new insurer.

B. Choose health insurance with a recharge plan

Like a regular health insurance policy, a health insurance premium plan also covers the costs of hospital treatment. Increasing the amount of your insurance through health insurance augmentation plans is cost-effective, as the premium payable for a supplemental plan is typically less than what would be paid if you increase the amount of guaranteed capital by the same amount as the increase.

However, Rakesh Goyal, Director of Probus Insurance, said: "The reason behind the low premium is that insurers do not offer these credit enhancement plans without a deductible amount. The deductible amount must be paid by the insured for the cost. of the treatment before the insured can file Claim under the recharge plan. Therefore, if the cost of the treatment exceeds the deductible amount mentioned in the recharge plan, the recharge policy can be saved. "

Policyholders have the right to choose a specific amount for the deduction. There are insurance policies where the discount is also applied to the main policy.

Naval Goel, CEO of, said: “While the health insurance upgrade plan will be cheaper, the room rent allowed will in many cases be a percentage of the base policy only, not the base policy. total plus the balance increase. So if the sole purpose of increasing the balance is to increase the room's rent limit, it may not be beneficial. "

"Recharge plans are ideal for those who have a basic / regular health insurance policy but do not have enough coverage to deal with a major medical emergency. For example, they must pay the expenses derived from an illness that exceeds the current coverage limit, "added Joel.

Take the example of a 30-year-old man who purchased a health insurance policy with a plan to increase the total amount insured to Rs 1 million. Here, the Base / Regular Policy has an insured amount of Rs 5 lakh and Balance Rise Plan of Rs 95 lakh. Claim reimbursement works as follows in different scenarios.
  • If there is a claim of Rs 4,00,000 per year, the regular / basic health insurance policy will pay Rs 4 lakh.
  •  If there is a single claim of Rs 47 lakh in a year, the normal policy will pay Rs 5,00 lakh (minus the deduction) and the remaining claim amount of Rs 42 lakh (minus the deduction) will be paid through the recharge plan .
  • If there were three separate claims during the year for Rs 3 lakh, Rs 2 lakh and Rs 2 lakh combined into Rs 7 lakh (for example, no single claim on Rs 5 lakh) then in such a case the insured would have to pay Rs 2 lakh out of your pocket. Here the base policy of Rs 5 lakh will pay the first two claims of Rs 3 lakh and Rs 2 lakh. In this case, the shipping policy will not be applicable as there is no individual claim on Rs 5 lakh and each claim only the basic policy.

Shabra said that if a 30-year-old non-smoking male residing in Metro City bought a regular health insurance policy with a recharge plan for a total of Rs 1 crore (Rs 5,000 as basic / normal insured + Rs 95 for the plan recharge), the annuity will cost you around Rs 10,000. "However, if the same person bought a regular health insurance policy with a high amount of capital insured of Rs 1 million, the premium would cost him about Rs 23,000 on average," he said.

What should document holders do

You can choose a health insurance policy with a higher premium, but that will increase your annual premium. On the other hand, you can opt for a basic / regular health insurance policy with an adequate insured amount that fits in your pocket (in terms of paying the annual premium) as well as opt for a recharge plan with a deductible amount equal to the base / regular health insurance policy.

Goyal said: "Normally the deduction can be increased for compensation plans. So let's say the client has bought a basic / normal policy with an insured amount of Rs 5 lakh and an increase policy of Rs 95 lakh. In a recharge policy, it can be Rs 5 lakh. So, In the case of a claim amounting to Rs 5 thousand, the principal amount of the policy insured will be offset. In case the claim is higher, say Rs 20 lakh , the base policy will be used in addition to applying the recharge policy.

The way it works is that Rs 5 lakh to be reimbursed through the base policy is used to pay Rs 5 thousand deductibles from the recharge policy so that the insured can get a total compensation of Rs 15 lakh which is the base policy (Rs 5 lakh) Plus Rs 15,000 for the balance recharge policy minus the Rs 5,000 deductible for the balance recharge policy. The insured must pay the deductible amount of the packaging policy before being able to obtain any compensation under it.

Suppose a customer buys a basic / normal policy with an insured amount of Rs 5 lakh and selects a deductible amount of Rs 6 lakh in the case of the higher policy of Rs 95 lakh. Then to claim under the Balance Rising Plan (after exhausting the basic policy), you first have to pay the retention amount of Rs 6 lakh. The policyholder can use Rs 5 lakh received from the base policy plus Rs 1 lakh from his own funds to pay the deductible. Therefore, you will have to expel 1 lakh of rupees from your own pocket.

Therefore, it is recommended to have a basic health plan with adequate coverage and then mention the basic health insurance amount as the deductible amount in the recharge plan. In this way, the basic / regular health insurance policy will cover normal medical costs and if the cost of treatment exceeds the limits of the amount of the insured basic plan. Therefore, you can benefit from the recharge plan, "Goyal added.

Apart from this, to take advantage of the hassle-free recharge plans, it is also important to purchase a recharge plan from the same insurance company that you purchased the basic / regular health insurance policy from.

Shubra said: "If you purchase a compensation plan from another insurance company, the claim payment for the recharge plan may not be in cash. Also, at the time of transfer, the continuity benefit is only received on the principal and not in the recharge plan. Therefore, before choosing any of the transportation insurance plans, it is important to properly understand all the terms and conditions of the plan. "