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POSTED BY ON August 20, 2012 9:35 am COMMENTS (4)
Suppose I take Floater forRs 3L which has a Room Rent Cap as Rs 3000. Its is good enough for me now.
My question is- With medical inflation @20%, after 20 years, the same room will cost Rs 15000/. So even if I buy an good cover at an early age, the same will be useless for me after 20 years . The isurer will pay me pea-nuts considering reimbursemnent to be made in ratio of Rs 3000 to Actual Room Rent.
How to address this? Obviously, at present I can not take a cover good enough for a furure room-cost of Rs 15000. That would require a cover of Rs 15 L!! Such a cover may not even be available.
One option is to keep on upgrading the cover periodically to keep pace with inflation. Rather than an option, its a bare minimum requirement if one wishes to keep his cover’inflation-proof’.
My question is- Does upgradation require a re-medical-test? If yes, If one gets some desease meanwhile, he may not be able to upgrade and his cover will become drastically week due to inflation. This will defeat the very purpose of insurance? No?
Experts/experince forum members, please provide your opinion.
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Thanks Ashal.
Could you please once more confirm your opinion. I understand ‘renewals’ can be easily done without any health-evaluation, but is the same true for renewals with UPGRADATION of SA also? (By health-evaluation I mean not just the physical medical tests , but also the declaration and information about the insured’s illness if any at the time of upgradation-renewal).
Why I am asking a second time is, because, to one of my query had advsied me to take an 8L cover now and upgrade to 10L before the age 44. This gives me a clue that after 44, upgradations may not be easy. (I have put a straight question at their websita asking if upgradations to keep pace with inflations are guaranteed or not. I havn’t got an answer to this yet.)
Nobody would mind paying a proportionalely high figure premium for these essential upgradations, since in real terms the premium will remain the same (considering inflation)
Still surprisingly, no Insurance co. talks about ‘Guaranteed Upgrdation’, but clamour about ‘Guaranteed Renewals’ only.
To me, ‘Guaranteed Upgradations’ is as important as ‘Guaranteed Renewals’ without which my insurance will be rendered toothless by the high (estimated to be 20% for healthcare )rate of inflation . Is Guranteed Upgradation (at least in proportion with the inflation) not as important as Guranteed renewal? Especially when it is considered to be a long term plan? What do you think?
Dear SK, the points raised by you are important. Yes every insurer talks of gtd. renewal not gtd. upgrade. Beyond age 44, yes the medical history & current health condition ‘ll come into play. to tackle this situation at that age, porting the policy may be an option after few years from here on wards.
Thanks
Ashal
Dear SK, every 3-4y, one may increase the cover amount. Normally the medical tests are done for renewal of policies.
Thanks
Ashal
Dear SK, sI’m sorry for the typo error in the first reply. The correct reply is – normally medical tests are not done for renewal of policy with the same insurer.
Thanks
Ashal