Thread by @DeepakRKhemani

Looking for a 1 crore #Health #insurance cover?
A stand alone #Healthinsurance policy of 1 crore or a combination of a 10 lakh base + 90 lakh Super Top up policy, which one will you choose.
A 🧵
1/n
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The rising cost of healthcare and the need for adequate health insurance coverage, makes it extremely important to have a sufficiently large health insurance cover, to take care of any unforseen expenses due to hospitalisation or prolonged treatment of critical illnesses.
2/n

Let's discuss why combining a base policy of 10 lakh with a super top-up of 90 lakh is a more cost-effective option compared to a standalone 1 crore health insurance policy, choose what works for you but if premium is an important consideration read further.
3/n

The base policy provides coverage up to 10 lakh. The 90 lakh super top-up policy kicks in once the threshold of the base policy, 10 lakh is exhausted, providing additional coverage, in this case another 90 lakh.
Every top works after a 'deductible'
amount is exhausted.
4/n

A deductible is the amount the policyholder needs to pay, in this case the base policy will pay, before the top up kicks in. It is usually the base policy limit, however I recommend it should be lower, if your base policy is 10 lakh choose a deductible of 7 or 8 lakh.
5/n

A person with a base policy of 10 L, a super top-up of 90 L with a deductible of 10 L in case of expenses of 15 L the base policy covers the initial 10 L, the super top-up covers the remaining 5 L. This works well if both policies are issued by the same company remember that
6/n

Most top up policies will not give you cashless options unless the base policy is with the same Insurer, which means it will be reimbursement, try corresponding with 2 different companies for 1 single claim or extended claims over a period of time.
You will wish you hadn't.
7/n

Let's compare this to a standalone 1 crore policy. If the same person incurs medical expenses of 15 lakh, the policy covers the entire amount, no deductibles, no correspondence with 2 different insurers, no headaches of reimbursement, peace of mind, which comes at a cost.
8/n

The premium for this 1Cr policy is significantly higher compared to the combined base policy and super top-up. Why?
In the top up the premium is lower as the company knows that the chances of a recurring large claim is low, the base policy will cover most expenses.
9/n

The features of a 10lakh cover policy will definitely be lesser than a comprehensive 1 Cr policy which is normally pitched as a premium policy for the elite few, with respect to room rent limits, surgeries, no claim bonus, overseas treatment etc.
10/n

Nowadays insurers are offering 50% No claim bonus. A 1 cr plan will become 1.5 Cr cover next year, and 2 Cr the next, clearly that has to be compensated by a higher premium!
It's essential to consider the balance between coverage and affordability of premium.
11/n

Factors like age, health condition, and medical history should be taken into account when making a decision.
In conclusion, a base policy of 10 L along with a super top-up of 90 L can be a cost-effective alternative to a standalone 1 crore health insurance policy.
12/n

As always, it's advisable to consult with an experienced insurance professional to understand the specific details of different policies and make an informed decision that suits your needs and budget.
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13/n

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