Managing Medical Costs – Is It Advisable To Own Multiple Health Plans?

With the rising costs of medicines, surgeries, and various other treatments, managing healthcare expenses is becoming increasingly challenging day by day. Obviously, a health insurance policy does cover a major portion of the medical expenses. However, the rising inflation has made it harder to meet the medical expenses with a single policy.

Can You Have Multiple Health Insurance Plans ?

The Insurance Regulatory and Development Authority of India (IRDAI) has allowed individuals to have more than one health insurance plans. This practice is particularly beneficial for those who are battling long-term illnesses as multiple health insurances would help them cover the substantial medical costs.

Advantages of Owning Multiple Medical Insurance Plans

• Broad Coverage - In case, if certain elements are missing in your first health insurance plan for specific treatments, then you can use another plan to fill the gaps. This practice would ensure that your expenses are covered from all sides.
• Smaller Covers, Lower Premiums - Instead of sticking with one huge insurance plan, you can split the amount to buy multiple plans to cover your health expenses. This would lead to lower premiums compared to buying a single plan with a huge medical coverage.
• Mitigates Risk Of Claim Denial - Often we come across incidents where the claims get rejected due to a minor error, leaving the individual and their families in deep distress of paying off huge medical expenses. However, if you own multiple health insurance plans, a claim rejected by one insurer, might be accepted by another, eliminating the risk of financial uncertainty.
• Diverse Policies - In a single family, all individuals might have varying medical issues. Some might have smaller problems, such as flu or fever, while others suffer from chronic or long-term illnesses. Notably, high expense diseases are not covered in general health plan. Having multiple health plans tailored to specific medical needs can be more beneficial than relying on a single policy.
• Enhances Financial Security - In events of major accidents or long-term illness requiring multiple surgeries and costly medications, having multiple medical insurance plans ensure better coverage over those expenses.

Disadvantages of Owning Multiple Medical Insurance Plans

Surprisingly, there are no major disadvantages. The only disadvantage could be the burden of making premium payments, and keeping track of all the renewal dates. However, it can be managed easily if you plan everything in a strategic and disciplined manner.

Can You Claim Medical Insurance From Two Companies ?

Yes, IRDAI permits that any individual can claim health insurance from two or more companies for the same treatment. However, if they are planning to do so, then they must disclose about their existing insurance policies in other companies while submitting their insurance proposal forms to both insurers.

The disclosure of all details at the beginning itself ensures smooth claim processing and maximizes benefits.

Owning multiple medical insurance plans is a strategic way to safeguard your finances against rising expenses along with securing your family's health. However, careful selection of policies and detailed planning are crucial to avoid unnecessary hassles.