Alert! Somewhere a health policy of ₹ 5 lakh should not fall on your pocket, understand why it is less

In today’s uncertain world, having health insurance is not just an option, but a requirement. Health insurance protects you from financial crisis due to increasing diseases and expensive treatment. But do you know that a health insurance policy of Rs 5 lakh can not always be enough to meet all your medical needs? Many times, so much amount falls short of the huge bills of the hospital. Let’s understand the main reason behind this.

Why can a policy of ₹ 5 lakh be reduced?

• Increasing medical expenses: Medical inflation is increasing rapidly. The cost of general surgery, intensive care unit (ICU) and special treatment costs more than ever. For example, the treatment of any heart -related surgery or cancer can easily go from ₹ 10 lakh to ₹ 20 lakh, which will be much higher than your policy of ₹ 5 lakh.

• Lifestyle diseases: Diseases related to diabetes, heart disease, cancer and high blood pressure are increasing rapidly. Treatment of these diseases is often long and expensive, in which repeated hospitalizations and expensive medicines may be required.

• Medical inflation: Inflation in the healthcare sector is about 15% annually, while the average increment is often less than this. This means that the cost of treatment in future will be much higher than today. After 5-10 years, your policy of ₹ 5 lakh may not be equal to ₹ 2 lakh.

• Sub-Limits and Co-Payment: Many policy contains sub-limitations on the rent of the hospital room, consultation with doctors or any special treatment. For example, if your policy holds a sub-limit of ₹ 5,000 per day on the rent of the room and you stay in the room of ₹ 8,000, then you have to fill the extra ₹ 3,000 with your pocket. Co-payment means that you have to pay a certain percentage (eg 10% or 20%) of the bill yourself.

• Special Diseases and Waiting Period: Some diseases or procedures such as cataracts, hernia or knee changes are usually covered only after a few years (waiting periods) of taking insurance. Some diseases come under the pre-existing conditions in the insurance policy, on which the coverage is found only when a fixed period is completed.

What should you do?

1. Choose adequate sum insured: Consider taking a cover of at least ₹ 10 lakh to ₹ 25 lakh or more, keeping in mind your age, family medical history and treatment of your city.

2. Top-up or super top-up plan: With your current policy, you can buy the top-up or super top-up plan. These plans provide a cover over a certain amount (called deductable) and give a big cover in a low premium.

3. Understand the terms of the policy: Prior to taking any policy, read its terms and conditions, exclusions, sub-limits and waiting period carefully.

4. Review the policy regularly: Review your policy every few years according to your growing age and changing needs.

It is very important to choose your health insurance policy carefully, so that when needed, it can really work for you and you can be free from financial concerns.