Should you bundle health and life cover plans: Key points to consider

In an era of escalating medical expenses and growing health consciousness, more Indian families are turning to bundled health and life insurance plans as a cost-effective solution to secure their financial future.

 

“Bundling health and life insurance not only simplifies the process for consumers by reducing paperwork and streamlining premium payments but can also lead to real cost savings,” says Dhirendra Mahyavanshi, co-founder & CEO of Turtlemint.

 

“Bundled plans offer seamless experience that aligns with the growing demand for convenience and efficiency in today’s insurance landscape,” Dhirendra said.

 

Shilpa Arora, co-founder and chief operating officer (COO) of Insurance Samadhan said "Bundled health and life plan packages have the unique advantage of combining essential coverage into a single package. It allows individuals to avail tailored financial protection at reduced rates."

 

 

Factors driving bundling insurance trend

 

Cost savings through bundling: One of the main benefits of bundled insurance plans is the potential for lower premiums compared to buying individual policies separately. Insurers often offer discounted rates for combo plans, making them more cost-effective.

 

Simplified documentation: Customers need to submit documents only once for both covers, streamlining the application process.

 

Integrated claim process: Many insurers now provide a single point of contact for both health and life insurance claims.

 

Key points to consider before bundling health and life insurance plans

 

Individual coverage requirements

 

Health insurance needs

 

·  Evaluate family medical history.

 

·  Consider age-specific healthcare requirements.

 

·  Account for existing medical conditions.

 

·  Assess typical healthcare expenses and frequency of medical visits.

 

·  Review coverage for maternity, critical illness, and specific treatments.

 

Life insurance requirements

 

·  Calculate dependent family members' financial needs.

 

·  Factor in outstanding loans and liabilities.

 

·  Consider children's education and future expenses.

 

·  Evaluate income replacement requirements.

 

·  Account for inflation and future cost of living.

 

 Cost-benefit analysis

 

·  Compare individual policy premiums with bundled plan costs.

 

·  Calculate total savings on premiums.

 

·  Review additional benefits and their monetary value.

 

·  Consider long-term premium escalation patterns.

 

·  Evaluate claim settlement ratios for both types of coverage.

 

Policy features and flexibility

 

Customisation options

 

·  Ability to modify coverage amounts independently.

 

·  Options to add or remove family members.

 

·  Flexibility to upgrade coverage.

 

·  Availability of riders and add-ons.

 

Policy terms

 

·  Lock-in periods and renewal terms.

 

·  Waiting periods for specific conditions.

 

·  Sub-limits and co-payment clauses.

 

·  Room rent restrictions.

 

·  Network hospital coverage.

 

Insurance provider assessment

 

·  Financial stability of the insurance company.

 

·  Claim settlement history and process.

 

·  Customer service track record.

 

·  Digital capabilities and ease of policy management.

 

·  Presence of branch network and hospital tie-ups.

 

Future considerations

 

Policy portability

 

·  Options to transfer health coverage to another insurer.

 

·  Implications on accumulated benefits.

 

·  Impact on no-claim bonus.

 

Coverage enhancement

 

·  Scope for increasing sum insured.

 

·  Options for adding new coverage features.

 

·  Availability of wellness benefits.