6-point checklist for picking health insurance purchase for HNIs

The COVID-19 exemplified how little control we have over external factors that can impact our health. As we all fight to adjust to a new normal, following the healthcare catastrophe, even in a normal environment, healthcare expenses are an uncertain thing.

As per industry reports, medical inflation for India is nearly 9-10% in 2021. Many discovered that hospitalisation costs for more than one family member afflicted with the Covid-19 forced the family to dive into their life savings.

The COVID-induced uncertainty, along with the ever-increasing medical inflation, is driving more individuals to reconsider their health financing priorities.

While for most people, the financial protection offered by health insurance is absolutely critical, high-net-worth individuals (HNIs) think that they can bear the financial impact of immediate medical emergencies at least in the near term.

It is easy to find false comfort in the assumption that you're well prepared for your future demands, including the unknown aspects associated with the social determinants of health like pollution, global warming, biological hazards, etc.

The difficulty emerges when you confront the facts and attempt to complete actual financial planning that contains such unknowns. Also, as HNIs tend to travel more often internationally, it is advised to obtain a health insurance plan that provides worldwide coverage.

Anuradha Sriram, Chief Actuarial Officer, Aditya Birla Health Insurance helped us decode some key features to consider while purchasing:

1. World-class benefits and a health-first approach:

Few health plans award individuals leading a healthy lifestyle with returns of up to 100% of the premiums paid. Pursue a plan which focuses on your health first by motivating you to stay invested in your health, has an option to double your sum assured in two claim-free years, and gives access to health assessment and health check-ups from Day one

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2. Worldwide cashless treatment:

Not every health insurance plan covers the costs for medical treatment to be done abroad. Medical treatments and other related costs can be immense in foreign countries.

Select insurance policies that offer cashless treatment on travel expenses, accommodation, and treatment at network hospitals abroad with a cover that is reasonably adequate of saying at least Rs 3 crore.

3. International travel cover:

HNIs who travel overseas for vacation, work or to receive better medical care and treatment must consider purchasing such health insurance.

Health insurance policy with international coverage covers international second e-opinion from a panel of experienced medical professionals, accommodation expenses abroad, and repartition of mortal remains. It also offers visa documentation guidance by a health insurance company’s select service providers.

4. Chronic Management Program:

As illnesses related to Asthma, High Blood Pressure, High Cholesterol, and Diabetes are on rising, opt for a policy that gives you an Automatic Upgrade at No Extra Cost to its Chronic Management Program if you develop a chronic condition post-purchase of a policy.

Such a program extends beyond the traditional out-of-pocket expenses coverage and takes a true health management approach that will help and motivate you to manage the condition well without further deterioration.

5. Other features:

Very few policies offer coverage within the base price of their policy for dentistry, mental illness hospitalisation, organ donor expenses, bariatric surgery, outpatient and in-patient expense, wellness coach, etc.

Given the uncertainties and the unpredictability of the impact of medical inflation, HNIs must opt for a global standard health insurance policy that will have access to comprehensive coverage along with quality care anywhere in the globe, including your nation or any other country.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)