Buying health insurance is not such a task after all. The sheer number of options available, each with its set of coverage and limitations, can get intimidating at the start. But for solving this, the Insurance Regulatory and Development Authority of India has directed all general and health insurance providers to adopt the Arogya Sanjeevani health insurance, a primary and uniform health indemnity insurance product.
First, let us look at how to figure out what kind of health policy you need. Your insurance should cover at least 50% of your annual income. Remember, this thumb rule provides a foundation for the coverage required. Your actual demands may be far higher and might get decided with a thorough examination of your health.
However, anything less is likely to be woefully inadequate, leaving you high and dry in an emergency. It is also essential to make sure that your coverage expands over time.
Individual cover vs family floater
The sum insured is not the only factor that influences the scope of coverage available. You must pick from the following options:
- Individual cover: This insurance is for a single person, either yourself or someone from your family.
- Family non-floater: This coverage includes the entire family, with each member having their sum insured.
- Family floater: This coverage covers the entire family for a single sum insured shared by all.
Individual health insurance is suitable for first-time employees, bachelors, and the elderly. Family non-floater is appropriate for families who need to cover their parents and in-laws, and it may be preferable to have separate sums insured for each member.
The family floater is appropriate for young couples with children or families with a breadwinner under 50 years old. When the likelihood of more than one family member needing to claim the insurance is low, a pooled sum insured works. After identifying your health insurance requirements, you must compare them to the coverage it offers.
What does Arogya Sanjeevani offer?
The Arogya Sanjeevani health insurance sum insured ranges between Rs. 1 lakh to Rs. 5 lakh in multiples of Rs. 50,000. A 5% co-payment clause is a part of the insurance. In other words, you must pay 5% of the admissible claim amount out of pocket for any claim you make. As a result, the premium paid is lower than it generally is.
Arogya Sanjeevani Policy also gives you a 5% cumulative bonus every year you go without filing a claim. In other words, if you do not make a claim this year, your sum covered enhances by 5% when you renew the plan.
For first-time insurance purchasers, the Arogya Sanjeevani health insurance is an excellent choice. It is best for you if you want some financial security without going into the complexities of health insurance.