Benefits of Multiple Health Insurance Plans

Having two insurance plans can be beneficial, if the benefits provided by the two are complementary and outweigh the cost. If a particular feature is not provided in one policy, it is a good decision to purchase a second health insurance plan, provided it comes with the facility which is absent in the first policy.

Here are a few benefits of having two or more health insurance plans:

• Rejection of Claims - Many times, there are instances when your health claim gets rejected. In such a case, multiple health insurance plans can be of great assistance. Getting covered under multiple health insurance plans minimises the chance of claim rejections. If your claim is rejected by one insurer, it may be accepted by the second insurer. Thus, you will not lose the entire claim money.

• More Cover - Two or more health insurance policies add up to bigger coverage, which in return reduces the overall cost. Also, with multiple health insurance plans, you end up paying a lower premium as compared to investing in a single plan with a wider coverage.

• Diversification - Another important benefit of purchasing multiple health insurance plans is diversification across the insurance companies. You can purchase two different types of health insurance plans. One can be a pure comprehensive health insurance plan, while the other can be a health ULIP. A health ULIP is the perfect way to insure your health as it provides fund value along with insurance. In addition, when the sum insured is lesser than the claim, the policyholder can claim the amount with any of the health insurance companies. Even the payments for pre-existing diseases can be done by both insurers.

• Critical Illness - A critical illness plan provides protective cover against specific diseases which might not be covered under your base health insurance. It is ideal to purchase one base health insurance plan and a critical illness plan as the second option. A combination of the two will maximize coverage and minimize the risk.

Here are a few points to consider before purchase two or more health plans:

• Read the policy documents from different insurers carefully. This will help you determine which plan would be primary and which would be secondary.

• Check if you can afford both the plans.

• Understand the claim settlement process of both the insurers.

• Calculate how much premium you would be required to pay monthly for both health insurance policies.

In short, there is no harm in purchasing two health insurance policies. But purchasing three or more is not advisable.

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