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What is the big catch in 1 Crore Sum Insured Health Insurance Plans?

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18 Sep, 2020 by rajesh r s

Need some help on medical insurance. Max bupa is giving a 5L + 95L to up insurance for almost peanuts. What is the biggest catch in it? I have gone thru the docs, but don't find catch. It's there something I missed?

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18 Sep, 2020
Anuj Jindal

Hey Rajesh,


There is a catch and there is no catch at all :)


Confused? Yes, you must be. To solve this, it is important to understand what kind of insurance or cover you are trying to buy, what is your need and purpose for buying insurance.


If this plan is not meeting that purpose, then there are several catches. But if it meets your need, then no catch.


So help me out please. Few questions for you-

(1) Why are you buying health cover?

(2) What do you expect from your policy?

(3) Why are you considering this Max Bupa plan?


I'll have my answer ready once I hear from you.


Anuj Jindal

Co-founder

www.sureclaim.in

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18 Sep, 2020
rajesh r s
1. Need to have a cover for all medical expenses that may arise. Am 37 yr old. This is apart from my company provided medical insurance. 2. It should cover my hospital related expenses, in case I get admitted. 3. Max bupa is the only one providing such high cover art low rates.
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06 Oct, 2020
Mahavir Chopra

Hello Rajesh,


Here's our attempt to answer your questions. Do let us know if it helps.

  1. There is no catch in the policy as such right now. As Anuj mentioned they do not expect high usage on the cover above say Rs. 5 Lakhs for the next 5 years for most customers, hence the premiums are cheaper.
  2. However, you need to be cognizant that insurers are permitted to increase premiums every year from the fourth year of launching a product, subject to IRDAI approvals. Given past experience, these premium increases can be as high as 50% in a year. The current pricing is temporary and will surely change to keep pace with the claims the insurer receives as the years progress and you and other customers grow older.
  3. In effect, there is a possibility that by the time you are able to use such a high cover, the premium may not be affordable and you may have to downgrade your cover to a smaller sum insured.
  4. The better option would be to consider buying a cover of around Rs. 10 to 15L per adult right now. If the premium for 1 Crore is similar or the delta is very low, you can go for the 1 Crore cover for now till the premiums are attractive. In case there is a significant premium hike later, you just need to downgrade your cover to the optimal cover of Rs. 10-15L per adult.


Hope this helped answer your questions on the "catch" in this offering :)


Do let us know if you have any further questions.


Regards,

Mahavir Chopra

Founder, Beshak.org

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21 Feb, 2021
Rahul Kude
Sir But there limit on room rent.
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