scorecardresearchYour Questions Answered: Should I opt for a high deductible health plan

Your Questions Answered: Should I opt for a high deductible health plan besides a comprehensive insurance policy?

Updated: 30 Jul 2023, 11:03 AM IST

Consider group insurance plans provided by employers or institutions, or setting up a medical corpus to cover out-of-pocket expenses. Consult a certified advisor.

Having health insurance is virtually a prerequisite to lead a secure life.

Having health insurance is virtually a prerequisite to lead a secure life.

Q. I recently suffered a heart attack. I have a comprehensive health insurance policy with high cover, but I am not sure if it would take care of treatments related to my heart condition. I have heard about the high deductible health plan policy. Should I also buy this in addition to my existing policy? If yes, what are the benefits?

Your concerns about your insurance policy are valid. However, the plan you have heard of may not be the best for you. 

A high deductible health plan (HDHP) is a type of health insurance plan that has a low premium but a high deductible which is the amount you need to pay before your insurance coverage kicks in. 

An HDHP may be a good option for individuals who are generally healthy and do not require frequent medical care. It can also be a good option if you want to save on the premium amount. 

An unfortunate heart attack may make it necessary for you to spend more on medical care for a long time. With an HDHP, you may end up paying more out of your pocket than what you would have with a traditional health insurance plan. Therefore, in your specific case, an HDHP may not be a wise option. 

However, there are two options that you may want to consider.

Group insurance plans: These plans are often provided by employers or institutions you may be associated with. Group insurance plans usually do not have waiting periods and cover all pre-existing conditions, including chronic diseases, right from the first day of coverage. Group plans usually charge a lower premium than traditional individual plans. 

Medical corpus: A medical corpus is a health savings fund that can help you cover out-of-pocket expenses not fully covered by health insurance, such as co-pays, deductibles, and non-covered services or treatments. This helps reduce the financial burden of a chronic condition and allows you to focus on your recovery without worrying about how to pay for it. You may review your investments and allot some to your medical corpus.

Please consult a financial advisor or an insurance intermediary certified by Insurance Regulatory and Development Authority (IRDA) before you decide on the best option. 

International Money Matters Pvt Ltd is a 20-year-old SEBI registered financial planning-cum-investment advisory boutique. Please click here to find out more.


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First Published: 30 Jul 2023, 11:03 AM IST