As healthcare technology improves, we have treatments for almost all major diseases. At the same time, medical costs have increased simultaneously, prompting more and more people to buy medical insurance coverage for uninterrupted healthcare during an emergency. To give you a perspective, while retail inflation has been around 5 per cent, medical inflation is around 14 per cent currently, underscoring the challenges people face in accessing affordable healthcare.

In this context, health insurance could be the only way out for most people. However, given the variety of health issues you could succumb to and the fact that all policies may have pros and cons, should you opt for more than one plan? So, let’s discuss it in detail.

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Is Buying More Than One Policy Sensible?

You can buy more than one health insurance policy. This option makes perfect sense if the individual is covered under an employer’s group insurance plan and wants to buy a separate plan. A personal insurance policy will enable the person to continue having coverage after quitting the job. Some could also argue that having more than one policy, although it can be expensive, gives the policyholder the option to settle the amount if one of the insurers rejects a claim. However, health insurers also provide riders and top-ups with a base plan, which can significantly reduce costs while at the same time providing comprehensive coverage for multiple diseases and risks.

However, note that claims cannot exceed the treatment cost even if you seek settlement from different insurers. The next aspect is the policy premium. Premiums depend on the features and facilities offered. The premium for a 40-year-old male for Rs 10 lakh coverage can range from Rs 9,000 to Rs 18,000. Similarly, Rs 20 lakh cover could be Rs 11,000-25,000.

According to Ashish Yadav, head of products, Manipal Cigna Health Insurance, “Ideally, it is advisable to get a single health insurance policy with a high sum insured coverage.”

For example, if a family of five wants to take Rs 50 lakh health cover, what should be the approach? Yadav opines, “A family requiring coverage of Rs 50 lakh can go for a family floater plan, which would offer such a high sum insured. Opting for a high sum insured coverage is essential as it helps fight the high medical costs and avail quality healthcare.”

He adds that even for a coverage of Rs 10-20 lakh, a single-family floater plan is beneficial if the family is in good health. However, if a family member has some health issues, they can buy a separate health insurance plan for that member to avoid depletion of the family floater coverage. “With one plan, you pay one premium, which is usually easier than managing and paying for multiple policies. It’s easier to understand and keep track of one set of policy terms and conditions, claim procedures, and renewal dates,” he says.

So, until there is a specific need for two policies, one can reduce the premium by using options like co-pay or deductible in the existing policy.

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• From a Cost point of view, there is no single answer to whether buying one or more policies is cost-effective. In a few cases, it could be better to have a separate policy, but opting for deductibles and top-ups may be better in other cases.
• From an Operational point of view, managing more than one policy requires more time and effort than one. Policyholders will need to keep records of both, pay premiums twice separately, and make claims separately, which may confuse many.

Therefore, first, decide how much coverage you need, ways to enhance the coverage, pre-existing disease coverage, any specific health issue, premiums, and additional taxation benefits if you are or have an elderly family member, and then select the suitable option.