Protecting oneself and their family from COVID-19 seems to have become the greatest motivator for Indians to buy health insurance. News of the loss of income and paying astronomical medical bills ensured that the industry saw a whopping 98% increase in demand for health coverage. Furthermore, the Union Finance Ministry's National Insurance Academy prepared a paper, Health Insurance in 2042: Challenges and Opportunities, which states that the premium collected in 2021-22 rose to INR 73,330 crore from INR 58,572 crore in the previous financial year. Here's why you need to do the same.
1. For Sufficient Coverage
Health insurance plans will bring you respite only when the coverage is adequate to cover your expenses. Increasingly inflating medical costs prove that your policy needs to provide an extensive sum insured. Besides, one cannot predict the degree of a medical emergency. As one saw in the case of COVID-19, no one was prepared for this kind of health crisis and its treatment expenses. Therefore, reviewing your existing plans is vital to ensure you have adequate coverage.
Reviewing the coverage size and bumping it up is especially crucial as the policyholder's age or the size of the family grows. For instance, when you get married and have children, you will need to add them to the policy for their medical coverage. Reevaluating and reworking your health insurance portfolio will support you in doing so.
2. For More Savings to Reach Your Financial Goals
As your family's needs and aspirations evolve, your financial goal ought to change so that you can support them. It would be best to have sufficient funds for financial stability. Thus, save and invest more mindfully so that neither you nor anyone else needs to compromise on anything, and your future will be secure. Insurance plans will enable you to save more when getting married and having children. If you include your spouse in your existing policies, you can benefit from lower insurance costs and better coverage.
Compare newer health insurance to determine which would be best for you vis-à-vis your goals such as children's education, buying a home or car, international travelling, planning your retirement or anything else.
3. Benefit from New-age Features
Insurers upgrade the plan's features now and then. They may introduce new health insurance riders or change the list of exclusions. For instance, there was no coverage for pregnancy or pre-existing diseases for a long time, but now, modern policies provide insurance for both. You could benefit from features such as lifelong coverage, foreign insurance, coverage for medical advancements and modern therapies such as robotic surgery or even AYUSH treatment (Ayurveda, Yoga, Unani, Siddha and Homoeopathy) and many more such interventions. If you find better features in other plans, it may be time to switch to one that will provide you with these.
4. To Align with the Change in Your Income
One aspect that would influence the requirement for your insurance plan to be reviewed is any change in income, be it an increase or decrease. If your current salary increases, choosing an insurance plan with a higher sum insured could be advantageous because it would give you more coverage and better financial stability in a medical crisis. However, a pay reduction also necessitates reviewing the plan because it makes more sense to choose a smaller sum insured than to cancel the policy (due to non-payment). So, consider revisiting and altering your plan if you are changing jobs or becoming a self-employed professional from a salaried employee.
5. To Keep Up with the Changing Lifestyle
A change in health insurance requirements depends on the policyholder's changing lifestyle. Reviewing health insurance plans would help you prepare financially in case of medical emergencies or any life event. At the same time, you can still enjoy the benefits of a comfortable lifestyle without worrying about having enough coverage.
Conclusion
If you want to secure your and your family's future financially, remember that you need to do more than merely buy health insurance. Keep revisiting your policy and compare it with the new plans or added features an insurer is offering. You must review your policy for sufficient coverage and more savings, take advantage of new-age features, update beneficiaries, and align the policy with your income. If you keep your plans up-to-date, you will get adequate coverage and reach your financial goals while keeping your family secure.
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