back arrow Back

Upgrading existing policy vs buying top up Health Insurance

reply Share
12 Oct, 2020 by  vijay

I've read Mahavir write earlier on increasing cover at renewal as much as possible till 38-40 instead of a top-up because companies make it very difficult to increase cover at older ages. And that top-up should be looked at only if the price of increasing cover is 20-30% more than buying a topup. The increased cover is apparently pain-free and uncomplicated during claim servicing etc.


However, with the recent ~30%+ announced premium increase even with existing cover, the cost of increasing sum insured is looking increasingly unaffordable. Moreover, this increased cover will again result in increased premiums for the rest of my life. Does the advice then make sense now and what would the pitfalls if say at 38 now, I keep the base cover as it is (10L) and increasing the top-up as needed till old age?


Some articles in ET also more or less advocate going for a top-up than increasing the base cover.



like like
0
Health Insurance
Opinion
Advanced

2 Answer

Post
12 Oct, 2020

Hey Vijay,

What is your current age and what plan are you on?

I'll give you advice specific to your scenario if you can share details.

like like
0
icon-comment 1 Comments
icon-reply Reply
13 Oct, 2020
vijay
like like
0
icon-reply Reply
13 Oct, 2020

Thanks Vijay for the details.

At 10L SI, your Supreme policy would be 20 L by the time you renew your policy next year. As a claims expert, I can tell you it's a fairly sufficient cover for a family of 4.

I think you should re-visit this question of increasing cover in another 10 years. Your Supreme policy would be sufficient till then. Given your age, think of buying a super top-up policy from Royal Sundaram after about 10-12 yrs, for about 15-25L with 10L deductible.

Sellers have incentive to frighten you into buying more and more cover. Just don't fall into the trap.

Anuj Jindal

Co-founder

SureClaim

like like
0
icon-comment 1 Comments
icon-reply Reply
19 Oct, 2020
vijay
like like
0
icon-reply Reply
Discover the best tips for insurance every week!
beshak logo

Beshak is your source for clear, research-backed information & analysis of insurance plans. Our sole focus is to help you make well-informed decisions on insurance. We don't sell or advertise insurance plans or companies.

facebook icontwitter iconlinkedin icon

Beshak is not regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and does not have any alliance or association with any Insurance business. © Copyright 2021 Beshak Solutions Pvt. Ltd. All Rights Reserved.

Disclaimer: The content on the website is purely for information purposes for the public at large, and does not constitute personal financial advice for a specific individual reader.
If you are reading this, it means you love reading the fine print. Why not get paid for what you love doing - Join us by writing to info@beshak.org now 🙂