Health Insurance Premium & Sum Assurance with Adjusted Inflation ?

POSTED BY somasekhararaom ON August 9, 2013 9:44 pm COMMENTS (6)

Dear Jagoinvestors,

 

Is there any company providing Health Insurance with adjusted inflation?

 

For Ex:


Product: Health Insurance

Adjusted Inflation: 10% (Pre-defined by customer)

 

Year 2012, SA-5 Lpa, Premium- 5000/-

Year 2013, SA-5.5 Lpa, Premium- 5500/-

Year 2014, SA-6.05 Lpa, Premium- 6050/-

Year 2015, SA- 6.65 Lpa, Premium- 6655/-

 

 

Every Year Sum Assured and Premium increased by 10% inflation.

In My openion, This type of Product is good for us as Inflation in Health Insurace is more than 15% India.

 

 

Thanks,

Sekhar

6 replies on this article “Health Insurance Premium & Sum Assurance with Adjusted Inflation ?”

  1. healthinsuranceshoppe says:

    Guys ,

    Increasing cover every year is not recommended at all. Every SI addition is a fresh one, so not advisable

  2. Dear Soma, instead of opting a low cover now, start with a higher cover from day one. you never know, when things may get wrong? For example if you are planning 5L cover, opt 8L or 10L.

    Thanks

    Ashal

    1. somasekhararaom@gmail.com says:

      Dear Ahal,

      Thanks for your valuable suggestion.

      Thanks,
      Sekhar

  3. Actual health inflation is way more that.

    This kind of policy is not available and neither will be (at least not in this name)
    . An insurer is taking a risk each year when they extend the policy for you. So there will be a limit to which the sum can be increased. It is not a practical business model to offer you a sum assured which compounds at 10%

    The best way is to buy an individual policy for each member and increase the sum each year by as much as the insurer will allow. Over a few years the sum will grow to a decent one.

    Personally I started with 1L with United India and increased it by 25K to 50K each year. Now my cover is 5L

    1. somasekhararaom@gmail.com says:

      Dear Free Financial Calculators,

      To increase sum each year by as much as insurer allow, we might have to pay high premium in the future with less Sum Assurance. Because age factor is involved particularly in Health Insurance.

      Let me know if you don’t mind, how much the premium you are paying on 5L insurance now?

      Thanks,
      Sekhar

      1. That is not true in general if you take a policy early (for ex. when John Travolta was filming ‘grease’ not ‘from Paris with love’ :)).

        I am now 39. I have United India platinum cover for myself (5L), wife (~ 4L) and child(~ 2L) and UI Gold cover for my mom (3L). The total premium I paid last Oct was approx. 19K.

        50% of that cost is my moms premium since she is 65. So 5L should be anywhere bet. 7-8K or so.

        This is my 5th year with UI. I started with 1.5L or so and increased it as much as my pocket would allow)

        Taking a policy early and having no claim discount will make a premium pretty low.

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