You have a corporate cover covering you for health & life which is good news. Employer provided insurance is a good option if the amount of cover is good. You have not specified the amount. If the cover amount is good, then you can rely on it for cover and augment with retail mediclaim/super top-up (if required). Retail mediclaim policy can be an overlap and hence look at other options like super top-up/super top-up which gets converted to mediclaim too.
You are young (Age 29 years, non-smoker and teetotaller, no PED) and hence it should not be difficult to buy retail mediclaim or super top-up policy (even in future and hence do not be in a hurry) AND life insurance policy.
It is good that employer is offering life insurance along with health insurance. As such, you don’t need life insurance at this time. You should plan to buy online term plan when you get married. Don’t be in a hurry. We are giving details below.
It is good that you have corporate mediclaim for family. There is huge difference in corporate mediclaim and retail mediclaim. Many things like PED covered from day one, maternity cover from day one, no waiting period for different procedures like kidney stone, cataract, knee replacement, etc are not there in retail mediclaim. Retail mediclaim has two-four years waiting period for PED and even for procedures like kidney stone, cataract, knee replacement, etc.
Health Insurance Regulations states: “Individual members, including the family members covered under any group health insurance policy of a general insurer or health insurer shall have the right to migrate from such a group policy to an individual health insurance policy or a family floater policy with the same insurer. Thereafter, he/she shall be accorded the right to port to another insurer (subject to underwriting).”
So, technically you can port from group to retail mediclaim of same insurer when you leave job. But, we have not come across case of an employee done it and insurer doing the porting him when he/she leaves job. The feature is there as per health insurance regulations. If your corporate policy is able to do porting to retail mediclaim of same insurer then it is a good option. Porting will help to avoid any waiting periods. It will also help you to postpone buying any retail mediclaim now. But, what if employer stops health insurance on its own?
The advantage with retail mediclaim is lifelong renewal and standardisation of coverage for everyone who buys the policy. Corporate mediclaim may change the policy coverage terms frequently if there are certain kind of claims and hence you are at mercy of employer.
Those with corporate mediclaim face dilemma if they need to have retail mediclaim or not. It does help to avoid situations of job loss, job change, employer discontinuing group cover, etc. Retail mediclaim can augment the corporate cover, but it can be considered as an overlap. If someone is willing to pay for the overlap, then buy retail mediclaim. If premium is a constraint, then super top-up is a good, inexpensive option.
One way to avoid overlap is to buy super top-up with a deductible equal to the corporate mediclaim cover. So, hospitalisation charges in a policy year which are in excess of the corporate cover will get covered by the super top-up. But, if employer cover is no longer there, then you will have to bear the deductible amount from own pocket.
One way to mitigate this risk is a new concept of super top-up which converts to mediclaim when you are close to retirement or completion of certain number of years with this product. It is offered by Apollo Munich Optima Super.
Read cover story - http://www.moneylife.in/article/insurance-denied/46743.html and http://www.moneylife.in/article/are-you-paying-a-high-insurance-premium/47540.html
Here is what we write to MSSN subscribers regarding health insurance -
We have given our suggestions here - https://savers.moneylife.in/health_insurance.html It works well for young generation. Two products are having premium on lower end while the other two are on higher side.
Government insurers is an option especially for older people, but the main issue is with cashless. Please read - http://www.moneylife.in/article/health-insurance-for-senior-citizens/39601.html Government insurer can be an option if cashless is not a major concern. Check the hospitals close to your home which offer cashless for the insurer you decide. TPA is an issue for government insurers due to poor service. Retail Mediclaim does get expensive for senior citizens. Regular mediclaim is allowed till age 65 years and many may allow beyond it if health is good. Government insurers is an option as premium for senior citizens is lower than private ones.
Bank group mediclaim for accountholders:
Bank offered mediclaim is a cheapest option, but we do not recommend it due to possible issues. PNB Oriental is a good option, but you have make decision knowing the issues. There may be no medical tests and hence underwriting is purely based on self declaration which can lead to issues at claims. There can be service issues. Read our cover story - http://www.moneylife.in/article/cheapest-mediclaim/18841.html
Last year, National Insurance discontinued mediclaim offered through banks. It forced the policyholders to move to their retail product. It means the insurer run the schemes until it starts going in loss. They expect high volume of business to negate any pressure on claims. If the claims ratio is not favourable they may discontinue and force move to retail product.
Recently, we came across Canara bank offering Apollo Munich Easy Health. The premium is similar to retail Easy Health for age less than 45 years. It is a good deal through Canara bank for those age over 45 years. The concept of same premium across ages is present for government insurers offering bank mediclaim. We are seeing it for the first time from private insurer, but they are not offering it for Optima Restore product. Again, we are not suggesting buying from Canara bank, but it is an option present. Issues - service issues, product itself may be moved to retail as done by National Insurance, claim related support lacking, etc.
Super top-up is also an option which is less expensive than retail mediclaim. It is helpful for those who are covered by employer or are willing to pay the deductible amount from own pocket. We have suggested L&T Super top-up. If you have mediclaim of Rs2 lakh and super top-up with deductible of Rs2 lakh. It will be cheaper than buying just mediclaim of Rs4 lakh. We have suggested L&T Super top-up, but max entry age is 65 years. Underwriting is strict for L&T insurance. The good part is that premium is constant after 60 years even though there is big one-time jump of three times premium when you cross 60. Other options are Religare Enhance and United India super top-up.
Apollo Munich Optima Super is a new option, one of its kind available till now. Apollo Munich Optima Super works as a super top-up policy till you get close to retirement when it will be converted to mediclaim. It helps to keep the premium low when it operates as super top-up during your working life. Individual and family floater options are offered. This is explained in this article -https://savers.moneylife.in/blog/insurance/article/a-super-top-up-that-converts-to-mediclaim-when-you-need-it/1104.html
Here is our feedback regarding term plans –
We have given three product suggestions for online term plans. Please see – https://savers.moneylife.in/the-best-term-plans.html
Insist on medical test before you buy it. Talk with the insurer about medical tests before you purchase. Declare everything in good faith. Declare existing life insurance policy (if any). Insurers do not want someone to be over insured. Insurers allows a person to have life insurance of 10-22 times annual salary. Ask for copy of submitted proposal along with the policy document.
You need to have a cover which is 10-12 times your annual salary + any liability (loan, etc) minus assets (excluding home where you reside). Check the tool for insurance requirement - https://savers.moneylife.in/tools/insurance-amount.html Need term plan to be there till your retirement
Max Life premium is lower when compared to ICICI Pru and LIC from our suggestion list. For price sensitive buyer we think Max Life is a good option. For those who trust only LIC, they can go with LIC e-term. ICICI Pru is priced in between. ICICI Pru Life has fallen down in settlement ratio. Read - http://www.moneylife.in/article/life-insurance-high-claim-rejection-ratio-of-hdfc-life-icici-pru-life/45720.html ICICI Pru iProtect Smart is a good product if you want critical illness cover along with term plan. Read our cover story - http://www.moneylife.in/article/which-critical-illness-policy/45722.html
MAX LIFE HAS JUST LAUNCHED NEW PRODUCT ONLINE TERM PLAN PLUS WHICH SHOULD BE BETTER THAN ITS OWN ONLINE TERM PLAN.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.