Having multiple health policies is more beneficial only if used effectively, such as the policyholder should know which policy to use first, while making a claim.
To avoid getting your lifetime or retirement savings completely diluted due to a Covid hospitalization, it critical that the first and foremost financial security and investment that you should do is to buy health insurance or increase your insurance coverage right away.
Health insurance has now become a necessity, especially with Covid and with the rise in medical costs. With the spread of the pandemic, more and more people started opting for a health insurance policy. Industry experts say people started opting for individual health policies as they were facing rising healthcare costs as well as the inadequacy of coverage provided by a single policy. This usually happens when someone has only an employer health policy.
With an employer’s health insurance policy, usually, the cover provided is not adequate for an entire family and there is always a need for additional coverage. This also happens when additional coverage or policies are needed because of other reasons. Moreover, a personal health policy also helps in cases of job loss or change of job.
Having said that, having multiple health policies is more beneficial only if used effectively, such as the policyholder should know which policy to use first, while making a claim. For instance, the necessary basic coverage is provided by both group insurance plans and individual health plans, but the group guarantees are cost-effective, whereas personal insurance provides better coverage.
While choosing to make a claim and choosing between a group plan or individual plan, there is no hard rule to it – it should be based on your scenario. However, a group plan is usually suggested for the first claim settlement as there will not be any increase in the premium amount after making a claim for the policyholder. On the other hand, with an individual policy, the renewal premium often gets hiked after a claim is made. Note that, most times the process of settlement in group insurance is faster.
When compared to the terms of an individual plan, the terms of a group policy are more flexible. For instance, some plans even accommodate existing diseases. In the case of a personal policy, the policyholder has to serve a waiting period, depending on the insurer before getting coverage on an existing disease. There are also insurance policies that reject policyholders due to existing diseases that are not covered.
However, while making claim experts suggest one should keep in view one’s current needs as well as future requirements, and consider the risk factor involved.