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Can you increase the sum insured for your critical illness coverage during renewal?

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When choosing health insurance, one of the critical factors is the sum insured under critical illness insurance coverage, particularly when your policy is due for renewal. Picture this: You are going through your critical illness insurance coverage and realise that your sum insured for critical illness may not be sufficient as your needs are different now. You wonder if it is possible to enhance the sum insured in critical illness, which is more aligned with your needs. The answer is Yes! You can increase the sum insured to ensure that you're well protected during renewal time, especially in a case where you may have undergone some pivotal changes in your life or made some remarkable health improvements.

How Does It Work?

When you renew your critical illness insurance policy, you usually have the chance to increase the sum insured. It means you can increase the amount that is covered by the critical illness insurance policy. For example, if the present policy covers ₹10 lakh and if you feel that you need some more protection, you can increase it to ₹15 lakh.

The increased sum insured applies to the new policy term only. Insurers would often give a discount for the top-up. So if you were paying a certain premium for ₹10 lakh coverage, and another ₹5 lakh is added, you would pay at a lower rate than is offered when buying a policy from the ground up. This leaves the new, higher level of coverage more easily affordable than if bought at the higher amount in the beginning. In short, you get a discount on the sum insured in critical illness relevant to your former expiring policy to avail yourself of more coverage at less extra cost.

Requirements for Increasing Your Sum Insured

When you renew your critical illness insurance and look to enhance the sum insured, there are some requirements you might want to keep at the back of your mind. It ensures that your new level of cover will be properly evaluated and that you will be properly protected.

1. Pre-Policy Check-up:

You may be required to go for a pre-policy check-up to enhance your sum insured in critical illness at renewal. The conditions for such checks vary with your age, and the incremental sum insured sought. This is broadly as follows:

◦ For Applicants Aged 18 to 45 Years:

• If the sum insured is ₹3 lakh to ₹25 lakh, a pre-policy check-up is generally not required.

• In general, pre-policy check-ups are required for more than ₹25 lakh.

◦ For Applicants over 45 Years:

• If you are raising your sum assured to ₹3 lakh to ₹10 lakh, a preliminary check-up pre-policy is a must.

• Whenever the sums are from ₹11 lakh to ₹24 lakh, detailed examinations are required, which involve a treadmill test or 2D echo.

• If the sum assured is between ₹25 lakh and ₹1 crore, a full check-up will be required.

• A profile of tests inclusive of TMT is required for a sum insured between ₹1.1 crore and ₹3 crore.

2. Medical Tests:

Various medical tests are conducted as a part of the pre-policy check-up. It can include an ECG, lipid profile, liver function tests, etc. It may vary depending on the age and sum assured. These tests will ensure that your health status is correctly classified before increasing your coverage.

3. Check-up Location:

You need to get the pre-policy check-ups done in a few of the network providers accepted by the insurer. If you get the tests conducted out of network, you'll usually get a refund for 50% of the medical test charges. If conducted within the network, you are eligible for full reimbursement of such charges. The medical reports from such check-ups remain valid for at most three months. Be sure that you complete your checkups within this duration, lest you invite unnecessary complications to your policy renewal.

4. Additional Tests:

If there are any positive health declarations on your proposal form, you might need to undergo additional medical tests beyond the standard ones required.

5. Important Note:

If you accept a proposal to increase your sum insured in critical illness, you should be aware that a fresh waiting period of 48 months shall apply to any pre-existing conditions which were declared and accepted at first inception.

Other Ways to Increase Your Coverage

Apart from increasing the sum insured during renewal, there are several other ways to enhance your critical illness coverage:

1. Top-Up Plans:

Consider buying a top-up plan for your current health insurance policy. The top-up plans enter into action when the threshold limit of your basic policy is reached. This thus would provide extra coverage without having to change the current policy completely. For example, if you have a primary policy worth ₹10 lahks and you purchase a top-up plan worth ₹5 lahks, you will get coverage up to ₹15 lakhs in total.

2. Healthy Living:

You can enjoy the positive implications of a healthy lifestyle on health insurance premiums. Most of the insurers charge less premium to those who are in a position to prove their commitment to health. By maintaining regular exercise, a balanced diet, and routine checkups, you'll be able to save on the premiums and be better placed to get enhanced coverage options.

3. Raise Deductibles:

Another way to keep a handle on your coverage level and your premiums is to increase what you'll pay on your deductible. A high deductible makes you agree to pay a higher amount of pocket money before the health insurance comes into play. Anything to get that premium amount lower is more than okay.

Conclusion

You should always select the right sum insured under critical illness coverage, depending upon your individual financial status, health condition, and plans. It's normally a good recommendation to review a policy periodically and make necessary adjustments. One can also have consultations with the health insurance provider to understand the best available options in case he or she wants to increase the coverage. In summary, increasing the sum insured during the renewal of your critical illness insurance is not only possible but often a wise decision.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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