Why Should You Upgrade Your Health Insurance Every 3 Years?

By Author: Rahul Kumar
Total Articles: 1
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This is why it's a good idea to review and update your health insurance plan every three years. If you have an active health insurance plan, why is it necessary to upgrade it every once in a while?

The cost of health care continues to climb

As one of the biggest disadvantages of considering a health insurance policy, you'll find that the cost of healthcare has been increasing. Diagnostic tests, medicines, surgery, hospitalizations and consultation with specialists may cost more over time. The sum insured that was adequate three years ago may be not be adequate today.

For instance, if you had bought your policy with a ₹5 lakh cover, it might have seemed like an appropriate amount at the time. But with increasing treatment costs, a major hospitalization could potentially consume most or all of that coverage. It is important to check the sum insured from time to time, so that your policy does not fall behind in line with the inflation in healthcare.

If your circumstances have changed, ...
... your Life may have changed.

You could have tied the knot in three years, have a baby in three years, take on a new financial obligation or be responsible for an older parent in three years. If your family has increased in size, you might not have enough coverage with your individual or family health insurance plan. On the other hand, if you had only taken out a policy for yourself and now require coverage for your spouse or children, it might be time to review your insurance arrangement.

You may have improved your income and lifestyle

Income and lifestyle may change as you advance in your career. You might be able to get a higher-paying job, own a home or have more money to invest. As you have more funds to play with, you could also be able to get more protection from health insurance. Depending on your requirements, you can either upgrade your plan to get more comprehensive coverage or increase the amount of insurance.

Employer Insurance May Not Be Enough:

In fact, many people depend on their employer's health insurance to a large extent. Corporate health insurance is a good benefit, but it might not be enough coverage for your whole family or be available if you switch jobs. A personal health insurance policy will allow you to have more control on the coverage that you are going to receive. It is advisable to review it every 3 years to ensure that you are suitably protected on your own, particularly if your employer-provided benefits have changed.

Policy features and healthcare needs change over time.

The insurance products and health needs may evolve with time. The new policies may provide different features, more network, better coverage options, or benefits that are better suited to your situation. A periodic review allows you the chance to review and compare your current policy with the options that may be available. But it's not always necessary to change providers when upgrading. In some cases, it could be sufficient to have a higher sum insured or to include an appropriate top-up or super top-up policy.

A Three-Year Review Can Help Avoid Underinsurance

A three-year health insurance review isn't just for the reason of acquiring more coverage. It's to ensure that your coverage continues to meet your healthcare requirements, family requirements, income and medical expenses. While you're looking, it's important to take into account your current sum insured, existing sicknesses, dependants, hospital choices, exclusions, waiting periods, room-rent limits, and add-on cover. Be sure to see if your policy still fits with any employer-provided coverage as well. A 3-year review will help you uncover coverage gaps before you have to file a claim. Regularly reviewing your policy, and updating it as needed, can help improve financial security against the risk of out-of-pocket medical costs.