We have been hearing time and again about medical inflation – unfortunately, the costs have only been on the rise. The occurrence of COVID-19 has made matters worse, with hospitalisation expenses and medical premiums going uphill. As per some studies, medical inflation in India stood at 14 per cent last year, which is much higher than in several Asian countries like China and the Philippines. Medical inflation can really break your bank, especially if you or someone from your family ends up getting admitted to a hospital. That's also where health insurance plans help!
But what can we do in a scenario where the premiums are only going up? The situation isn't likely to get any better in the coming years – the costs are only going to rise, leaving most of us in a lurch.
A health insurance policy is not enough – it should be planned in a way that it can beat medical inflation, without you having to bear any burden. So, are there any tricks and tips that can help?
● Get adequate cover
It may sound counterintuitive, but it is essential to get coverage for everyone in your family. Don't get swayed by the premiums, see how much coverage your loved ones will receive, in case there's an exigency. If your employer provides you with health insurance, level it up with personal insurance. This helps you create a safety net, in case you have to bear high medical expenses.
It is also critical to keep in mind the medical history of each person, so that health insurance can be planned accordingly. As they say, it's always better to be safe than sorry!
● Invest in health insurance as early as you can
This is a ground rule if you want to beat medical inflation! You must buy health insurance early on at all costs – it gives you leverage, because when we are younger, we are far healthier than we are during old age. This also helps to get higher coverage. If you are wary about investing or if you've just begun your investment journey, think about putting in a significant chunk of money in health insurance.
Pro tip: When you compare health insurance policies, also bear in mind the room rent restrictions, coverage for consumables, as well as cashless facility.
● Go for a no-claim bonus
When you buy a health insurance policy, always make sure that you zero in on a plan that offers higher no-claim benefits. A policyholder receives a no-claim bonus, if they do not file a claim in a given year. There are certain covers that offer an increase in cover value based on the no-claim bonus, so find out about this to get a higher cover. Not only will this help you get a greater safety net, but at the same time, keep medical inflation costs on track.
The best part is that the no-claim bonus acts as coverage, above and beyond your sum insured.
● Don't forget super top-up plans
If you want higher coverage to safeguard your health, do not miss out on super top-up plans. This is a great way to deal with medical inflation too! What's more, this means that you can get greater coverage without shelling out too much money. You can renew these plans on an annual basis.
In the case of super top-up plans, all the bills you submit are considered, be it for a single illness or multiple issues.
The last word
Your health is as important as your wealth – that's why it is important to take certain steps to safeguard both. These tips will not just help you get the most out of your health insurance plan, but will also provide you with benefits to beat inflation. It's a win-win in every way, we say!
