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Friday, Jun 16, 2017

Insurance queries: Continue your corporate health cover even after you exit the company

[Source : The Economic Times]

I am 38 years old, single, insured under corporate cover by my company with no pre-existing illness. How do I cover myself with health insurance assuming I retire at 50 years and a life expectancy of 20-25 years post that for my old age health needs?

It is sensible to start early with a reasonable and cost effective health insurance protection. Assuming that your corporate cover is of Rs 3 lakh (you have not mentioned your corporate insurance limit), we advise you to continue with the same but remember to convert the corporate coverage to an independent individual cover with the same insurance company when you exit retire. Involve your HR in converting your policy to enjoy all benefits, which were available in the the corporate cover.

With steadily rising hospital and medical costs, we suggest that you take two additional covers.

1. Enhance your cover up to a minimum of Rs 15-10 lakh by opting for a top-up cover.Top-ups help in increasing your limit from a chosen level of Rs 3 lakh to Rs 15 lakh. Understand that a top-up policy will accept claims only if the hospital cost shoots the chosen level and will accept claims up to another Rs 15 lakh.This will be far cheaper and an effective option.

2. Take an independent critical illnesses cover that offers protection against dreaded illnesses, such as cancer, stroke, kidney disease etc.For instance, if you take a policy for Rs 10 lakh, you will get a lump-sum benefit equal to sum insured if you are diagnosed of such diseases; treatment of which is normally for a long term and very costly.

I have an individual family health policies for my wife and two kids for sum insured of Rs 2 lakh each renewed in December. I also have a family super top-up of Rs 5 lakh with deductible of Rs 5 lakh. What options do I have to cover the gap of Rs 2 lakh to Rs 5 lakh till I increase my sum insured in individual policy? Can I buy another super top-up from any other health insurer.

Approach your insurer and ask for an upgradation of FHO cover to Rs 5 lakh now itself.You must mention that the freshly availed policy of Rs 5 lakh provide all benefits of continuity based on the number of years you have run the policy. Understand, the enhanced cover of Rs 3 lakh will be subject to all conditions that apply to a new sum insured in a regular policy.

You can also choose a fresh policy for Rs 3 lakh but this would be substandard option. Else, opt for multiple top -up policies. However, it is advisable to manage fewer policies as they will be cost effective too.

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