10L or 1 Cr?
How much health insurance coverage is good enough?

A thread.

The following questions answered:
• Why can't I upgrade later?
• 5L, 10L, 50L, or 1 Cr?
• What about 1 Cr covers?
• What if the cover becomes unaffordable?

🙏 Retweet to spread awareness 🙏
First things first. If you are less than 40, remember you are pre-booking a good product today, that may not be available later in the same shape or form, due to old age or illness.
But can't I upgrade later?

Crossing 55/60 yrs of age, one claim, or a disease in the family, and bam, your chances of getting an upgrade go down from 90% to say 20%.

Leaving it to the future does not make sense.
So then, how much health insurance cover should I buy by age 30?

• Taking linear medical inflation of 6%.
• If 3L looks adequate today - you need atleast 16 Lakhs of cover in 30 years.
• Yes, 16 Lakhs!

In the case of a floater, you should buy 2X = 30 Lakhs of coverage.
Would 16L be enough?

Optimistically yes, but realistically: who the f**k knows? The speed at which the world is changing, nobody can really predict what happens in 30 yrs!

Healthcare could become free, or it could become super expensive - no one knows. Then what to do?
Hence I additionally recommend you invest in a parallel healthcare fund too.

This will take care of two things:
• Additional buffer.
• For expenses not covered (in the pandemic, we realized 30-50% of expenses were outside the scope of the policy + OPD, etc.)
What about the 1 Cr. covers?

Premiums are very attractive - too good to be true. Be ready to downgrade if the premiums go up later!

I wrote about it here:
beshak.org/insurance/heal…
What if the cover becomes unaffordable?

Remember, while an upgrade is dicey, you can always downgrade a cover if it becomes unaffordable

Looking at the evolution of healthcare regulations, I strongly feel that hiking health insurance premiums will get regulated sooner or later.
I am under-insured. How to upgrade right now?
• Contact your insurer well before the renewal date and request for an upgrade?
• You will have to fill forms.
• Do it while you/your family is fit & healthy.
Of course, use Topups to reduce the burden of premium. Our calculations say you can save anywhere close to 30-50% by buying a super topup.

Read this article before you upgrade using Topup!
beshak.org/insurance/heal…
A video on the same topic, if you would like to consume this in video form:
Follow @BeshakIN for more such tips, guidance on Insurance.

Join our telegram channel for quicker updates: t.me/BeshakIn

Questions? Ask here: beshak.org/forum
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More from @themahavir

17 Mar
Health declarations made when getting the COVID 19 vaccine. What is the impact on your existing life & health insurance policies?

A quick thread 👇

1/n
Q1. Whether declarations made during the vaccination can be used by insurers?

A. In our view, insurers are unlikely to get access to health info without your consent, unless there is a fraud case. We recommend you make the right declarations to avoid any complications later
2/n
Q2. What if I declare a health condition while taking the COVID19 vaccination that was diagnosed after I bought the insurance policy.

A. Nothing. You don't have to worry about any disease that you suffered after you bought the policy unless you are planning an upgrade.

3/n
Read 5 tweets
28 Nov 20
You will find this interesting 🤯

Health Insurance premiums for a plan are as follows:
5 Lakh cover = Rs. 13410/-
25 Lakh cover = Rs. 24759/-
1 Crore cover = Rs. 18003/-
Wut? Yes. How? 🤔

Thread time 🧵:)
We checked if the plans were different.

What we found is that apart from the room eligibility there is no other significant difference between the plans.

This may have called for a lower “per lakh” premium, but it does not justify a discount of 37% for a 400% higher cover
So we dug deeper :)

We checked, rechecked, spoke to experts and the answer came down to simple market mathematics 🧮

Something you need to understand well.
Read 9 tweets
4 Nov 20
A thread on the ultra viral thread by @wiredmau5

My take based on reading/learning health insurance policies, helping customers with comparison, claims for 15 years now.

This is right. *However*, most health insurance plans today do not have a room rent limit unless you are buying a cover of Rs. 4 lakhs or less.

Yes, be careful and keep an eye on the room rent limit, but there is more to it, read on.

Some insurers may, however, have a cap on room category - which means they only allow a particular category of room. If you ever opt for a room above this category, u have to bear the difference and proportionate charges for the entire bill.
Read 17 tweets
1 Oct 20
Some good news: 🥂
1/ Health Insurance becomes better, clearer, cooler from today😎

A quick thread that explains the changes.

#Thread
2/ **Why was this needed**
Every plan has its own independently designed terms and conditions, especially exclusions. 🙄

It was difficult to understand & compare many of these wordings. This also resulted in unpleasant surprises & grievances during claims.
3/ IRDAI has been taking massive efforts to standardize health insurance products, making them easier to understand and compare, helping reducing confusion and grievances.

This is another effort from IRDAI. 💪💪
Read 12 tweets
3 Aug 20
Update.
- I email my insurance broker.
- They write an email to the insurance co. official asking for a "payment link."
- Insurance co. official gives a classic response "The below-mentioned policy does not pertain to our office."

Looks like I am in an Office Office episode😂
I usually don't like to take up a case against a brand. But I am doing it this time - coz, if it can happen with me, I am just imagining people who don't have a clue about insurance.
I mean Insurance brand.
Read 6 tweets
2 Jul 20
Thread alert.
1/ Had written a lonnnng post on health insurance for COVID19😷a couple of days back.

Some found it too long and technical, and did not read it.😐

So here's the same information in an easy to read, a thread.

Hope this is useful. Let me know
2/ Fixed Benefit Plans that pay a fixed amount of cash 💵💵 on being diagnosed positive for COVID 19 were helpful.

They could help insure the high deductions amounting to 25-40% of the total bill (Rs. 75K to 200K).

I had written about this:
3/ But these fixed benefit plans disappeared one after another🤦 - Maybe because they saw too many claims coming in.

I wrote about this here.
Read 12 tweets

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