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Health insurance tips: Should you opt for riders and top up plans?

Since healthcare is becoming increasingly costly, everyone needs to be fully covered by health insurance. Experts advise being aware when selecting the appropriate amount of health coverage.

The amount of insurance that one can obtain is contingent on the type of insurance along with the number of dependents. The ideal scenario is to opt for the plan with a minimum amount of coverage of 5 to Rs 10 lakh to keep their family protected against any health issue under current conditions.

Health insurance plans offer a variety of options. are options for riders and top-up plans that can increase health coverage.

What are rides and what are top-up plans?
In simple terms, a rider with a health insurance policy is an added benefit to provide additional benefits. To purchase a rider the insured is required to pay an extra sum over the initial premium. The majority of the time, these additional cost is minimal. The most popular riders offered by health insurance include room rental waiver, maternity insurance hospital cash, and critical illness insurance along with personal accident riders.

Also read: What is the amount of assurance you need in case of an emergency?

The top health insurance plan gives additional medical insurance for people who already have a health insurance policy or an employer Mediclaim policy. The top-up plan provides coverage for medical expenses if the coverage provided under the regular policies is exhausted.

Should you choose to go with riders or top-up plans?
Experts recommend that people take care when selecting riders and plans with top-ups to make sure they’re not in the wrong place.

“Along with health plans, one should also opt for riders and top-up plans which are available to enhance one’s health insurance covers and to cover the major financial risks,” Aatur Thakkar Co-founder and Director at Alliance Insurance Brokers, told FE Online.

“Since the cost of healthcare is increasing it is recommended that when selecting a health plan one must consider the family history in addition. In addition, it is crucial to be aware of a growing number of diseases that are associated with lifestyles, such as heart disease, cancer, and diabetes that will be affecting a large proportion of young people shortly, so taking precautions to reduce the risk of these diseases is equally crucial,” he added.

The reason why one should choose riders and plans with top-ups
According to Thakur, that underinsurance is an issue even though an increasing number of people opt for health insurance following the Covid outbreak. Top-up plans and riders assist in tackling this problem.

“Since the spread of the covid-related pandemic and the rising medical costs increasing numbers of people are choosing to purchase health insurance coverage, however “under insurance” remains a significant cause of concern when filing claims. To determine the appropriate amount of coverage for health one must consider their needs, health status, age lifestyle, income, and health condition regularly. The possibility of unforeseen inflation and expenses are other important factors to consider when selecting the insurance plan,” said Thakur.

“It is advised to pick an insurance plan that covers at or near 50% of the annual earnings. Making sure that the plan is based on the needs of one’s family and understanding all limitations and exclusions also helps in making the right choice when choosing an insurance plan,” he added.

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