As the health sectors are evolving daily in many countries including India, having a health insurance plan is beneficial. Health insurance helps cut down costs by providing cover against rising health expenses like hospitalisation, surgeries and other medical treatments. However, it is always a good idea to compare health insurance plans first to make more informed decisions.
In other cases even with comprehensive health coverage, there might occur a situation where one will need some extra benefits in the plan. This can be done by paying additional charges and availing these benefits in the existing insurance policy.
Keeping this in mind, we will learn more about the additional coverage in this article.
What are the Additional Coverages in Health Insurance
Additional coverages are supplementary features in an insurance policy that are added to the existing insurance plan. These can be availed by paying some extra amount which is termed as health cover loading.
The added coverages have become an important feature offering individuals enhanced health and financial protection.
Have a look at some of the best health coverage add-ons and understand why you should choose them to boost up your current health care claims and benefits:
- Increased accessibility to healthcare services: The policyholder can take OPD consultations, and early prevention of potential health issues as an add-on benefit.
- Continuous health coverage: Some add-ons provide advanced medical treatments and hospitalisation coverage without interruptions, that is, long-term health coverage without requiring any renewal. This is also highly cost-effective.
- International coverage: Some policies may include this, ensuring that policyholders can get healthcare services globally without worrying about affordability.
- Family benefit: Add-on coverage can be beneficial for all family members ensuring that they will get the benefits without the burden of extra expenses.
Loading in Health Insurance
Loading health insurance is a way for insurance providers to manage premiums based on an individual’s health risk factors. Insurance companies may charge loading at the time of purchasing the plan, renewal or at the time of adding extra coverage features to an existing plan.
Here are some criteria which may influence the loading method
- Pre-existing medical history: Individuals with pre-existing medical conditions may be charged with higher premiums on their insurance plan.
- Age factor: As the policyholder ages the risk of encountering various health issues will also increase. According to this factor, insurers may charge for loading to the existing premiums depending on the age.
- Gender: Health issues associated with specific gender may influence the loading charges.
- Lifestyle: Your lifestyle choices, such as if you are addicted to smoking or alcohol can impact your health. Depending on these factors insurers are allowed to charge loadings.
- Occupational factors: The type of occupation individuals are involved in can also lead to a higher risk of injuries or health issues, which may add loadings on their premiums to manage the claims.
- The type of health insurance plan you are buying: Choosing between comprehensive health insurance plans, such as the one which offers pre-illness coverage, may have a higher premium compared to a regular plan. Since comprehensive plans provide wider safety, higher loading is added to the health insurance plan.
Modes of Health Care Loading
There are commonly two ways of a loading process – initial premium loading and renewal premium loading,
- Initial premium loading: The initial loading is referred to as the amount added at the time of buying the insurance to maintain the risk factors.
- Renewal premium loading: This kind of loading is applied at the time of renewal. If the policyholder’s health risks change, it allows the insurance companies to figure out the risk factors and adjust the loadings accordingly.
The insurance providers choose both of the loadings to ensure that the cost of the policy justifies the risks associated with the individuals. Hence, understanding these modes of healthcare loading is important for anyone if they are planning on purchasing any health insurance or when evaluating insurance options.
Takeaway
The inclusion of any extra coverage in health insurance plans enables policyholders access to better medical support. It is advisable to add some extra benefits as it addresses the essential healthcare needs and enhances the overall value of your existing health insurance policy by promoting well-being and more financial security.
Before buying such add-ons, compare the cost-benefit aspect, consult with your healthcare insurer, and go through all the terms and conditions carefully.
