Health insurance

Rajesh Parmar: To increase the cover of a health insurance policy which one is a better option – buying a top-up or increasing the cover of the existing policy or buying a new policy?

Antony Jacob, CEO, Apollo Munich Health Insurance, replies:

It is a wise decision if you are considering to increase the cover of your health insurance policy as it is important to be adequately insured. It is especially important now when medical costs are rising due to advanced healthcare technology. While increasing the cover, you must consider which category of health insurance you require and streamline the purpose it serves. Buying a new policy with benefits similar to the existing one does not provide any additional help as a cumulative bonus cannot be ported. Hence, a new policy should only be considered if it offers enhanced benefits or for better customer experience. Otherwise, look for a top- up plan that offers identical benefits as your base product in terms of sub- limits, co- pays, pre- and posthospitalisation limits, waiting period and so on. It is beneficial because it gets seamlessly integrated with the existing policy and increases the cover limit. Plus, there is a premium advantage when you take a top-up on the base plan. However, the pre- existing disease waiting period is different in such cases.