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Why Having Multiple Health Insurance Plans is Beneficial?

By Vikas Chandra Das
14 November 2022, 10:57 AM

Understanding the terminologies of health insurance at times can take time and effort. Having dual coverage is acceptable and beneficial; one can complement the other and outweigh the cost. However, you must coordinate your two benefits correctly to ensure your medical expenses are adequately covered.

Having multiple health insurance policies also does not mean you would get reimbursed twice for a doctor's visit or a medical expense. If you have dual plans, the total amount your plans pay will always be at most 100% of the cost.

Further, if you have more than one health policy, coordination of benefits is the process that decides which insurance pays for a claim first. That's where primary versus secondary insurance comes in.

Due to inflation and rising healthcare costs, having this kind of financial protection can safeguard you in unexpected medical emergencies.

Benefits of Having Multiple Health Insurance 

Widespread Coverage

Firstly, evaluate your current health insurance policy regarding how much it covers, such as whether it provides critical illness or maternity coverage. Secondly, suppose you have health insurance provided to you by your company. In that case, you can buy an independent policy to secure your coverage, just in case you decide to leave the company or due to unexpected job loss. Lastly, multiple health insurance policies can add to more extensive coverage, minimising the total cost. Also, with a couple of medical insurance regulations, you come to be paying a decreased top rate compared to investing in an available plan with much broader coverage.

Lower Premium 

When a person buys multiple health insurance policies, the premium reduces compared to investing in a single policy with more considerable coverage. Subsequently, smaller covers from multiple policies can lead to more extensive coverage without affecting your budget. 

Protection Against Claim Rejection 

When health insurance claims are denied, having families pay substantial medical bills out of their pockets can be devastating. However, if a health insurance claim is rejected by one of her insurance companies, another can accept it, so all the benefits are recovered. Having multiple health plans is, therefore, a safeguard against claim denials.


You can choose to diversify across multiple insurance companies. There are exclusive sorts of medical insurance plans. One may be a natural complete medical insurance plan, while the alternative may be a fitness ULIP. A fitness ULIP is the ideal manner to insure your fitness because it gives a fund price in conjunction with insurance. In addition, whilst the sum insured is lesser than the declaration, the policyholder can declare the quantity with any medical insurance company. Even the bills for pre-current illnesses may be executed with the aid of each insurer.

Critical Illness Plan

A critical illness plan offers protection against specific diseases that might not be covered or maybe expensive under your primary health insurance; hence, when you have multiple policies, you can cover more illnesses. Therefore, purchasing a critical illness plan in addition to personal health insurance can help mitigate risk and maximise coverage.

Tax Benefits

Possessing multiple health insurance policies can help you save tax under Section 80D of the Income Tax Act. A policyholder can save up to INR 1 lakh to pay his premiums under health insurance.

When Should You Opt for More Than One Health Insurance Plan?

You are covered only under a group or a company plan like your parent's family floater plan and/or an employee health insurance, and you want additional coverage from an individual health plan.

You only have an individual health plan and need more specific coverage, like a critical illness plan.

You have just got married and wish to get a family floater in addition to an individual plan or an employee health insurance.

You require a top-up plan over and above your current policy.

These scenarios will help you build a robust health insurance portfolio that can provide financial stability. Finally, At the time deciding whether to have one or more health insurance policies, ensure to keep the following pointers in mind-


First, you need to find out the total amount of damage and the sums covered by the various insurance policies. Check to see if there are any disclaimers or copay clauses. The co-pay clause requires the policyholder to bear a certain percent of the claim amount, while the deductible refers to a fixed deductible amount of the claim, from which the insurer pays.

Both clauses require the policyholder to pay part of the loss through co-payment or separate insurance, so it is advisable to use insurance without co-payments or deductibles.

Read the coverage files from different insurers cautiously and compare if you could store cash by having each. This will assist you in deciding which plan might be number one and which might be secondary. 

Connect with a professional or test with customer support and apprehend each insurer's declared agreement system.

Calculate how much premium you would be required to be every month and if it will be a value proposition.

Plan your budget and funds and check your affordability in managing multiple policies.


1. Is it worth it to have two health insurance?

Investing in multiple health insurance plans provides comprehensive coverage to an individual. It extends backup protection in medical emergencies, losing a job, or an interim period between switching jobs from one company to another. 

2. Can we have multiple health insurance policies?

Policyholders can have multiple health insurance plans. However, if they claim reimbursement for similar expenses from multiple insurance companies, it would be denied. If one cover is not sufficient, the other cover can be used to cover the costs. Policyholders can purchase health insurance plans in any quantity.

3. How is group health insurance different from individual health insurance?

The fundamental distinction between group and individual health insurance is that during a group plan, the insurance is shared amongst a fixed group of human beings associated with a specific condition. In contrast, an Individual health insurance policy covers only the policyholder.

4. Do health insurance companies share information?

Insurance companies do share information about your health with each other and they receive this information directly from your doctor and other sources. Additionally, insurance companies use “underwriting standards” to determine whether they will issue the policy the customer requests and what the price will be.

5. Are there any consequences if you don't disclose any pre-existing conditions?

Non-disclosure of pre-existing conditions can result in claims getting denied at the time of renewing the policy. 

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