I am seeking to get a health insurance but confused between opting for a few add-ons or rather go in for two different policies. What do you suggest?
Good to know that you are considering health care policy to cover for any medical expenses. There is a case for opting for two dedicated health care policies as well as opting for one policy with various add-on covers. The selection depends on the primary needs of each individual along with the premium paying capacity.
As a general indication, getting add on plans are far cheaper than opting for a new policy. For example for a 30 year old healthy man, a basic health care policy with a cover of Rs. 2 Lakhs would cost anywhere between Rs. 3700 and Rs. 6000 depending on the policy and the service provider. A top-up policy of Rs. 10 Lakhs with Rs. 3 Lakhs as deductible on the other hand would cost only around Rs. 1500 to Rs. 3000
The comparison has to be made between coverage that is available in the cases of accident or a critical illness rider that you opt for with a life insurance policy against the coverage the policyholder is entitled to in a Health Insurance policy. In general, a standalone policy provides larger coverage as against a rider. You can also keep in mind that there is a reason why riders are not that comprehensive. This is generally due to the fact that cost needs to be incurred for the insurer increases. The IRDA which protects the interest of policyholders has regulations that says that the premium amount in case of a rider cannot be more than 100 percent of the premium for the basic product which in this case is the life insurance. It is essential to also remember the fact that the rider benefit must not be more than the sum assured if it is under the basic product.
A health insurance policy is renewable for life whereas riders stay active only as long as the policy term of the life insurance plan.
Accident and critical illness riders are generally covered from the first day when it comes to policy claim as there is no waiting period. In the case of standalone policies a general waiting period ranges between thirty to ninety days.
A policyholder for a life insurance rider is eligible for tax benefits under Section 80C/80D of the Income Tax Act. You can get tax benefits under Section 80D for Health Insurance policy.
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