I am 72 yrs and my wife 62. We have Mediclaim from National Insurance for 5 lakh each for last >20 years. However, due to high premium, we reduced it (by step) to 3 lakh each and also losing bonus accrued. Now I am thinking to have another insurance from Star Insurance for Rs 2 lakh each.

Is it advisable and what are the pros & cons?

Ans: Hi Pradeep, yours is a legit concern. It would be best if you take advice from a professional person or company – having the necessary qualifications -- after discussing your issue with them.

Insurance is each to its own. Depending on your concerns and requirements a professional service provider will be able to give you the best advice, whether to tweak policy amount or switch to top up.

Ans: I understand your concerns about the Click 2 Protect 3D policy and your desire for either more coverage or the ability to switch providers. Here's what you can explore:

Increased Premiums and Coverage:

Review your Policy: Carefully examine your policy document to understand the breakdown of the premium between term insurance (HDFC Life) and health insurance (ERGO). This will help you assess if the health coverage benefits justify the increasing cost.
Contact HDFC Life and ERGO: Reach out to both HDFC Life (for term insurance) and ERGO (for health insurance) to inquire about possible options for increasing your sum assured (coverage amount) within the existing plan. This might lead to a higher premium, but it would also provide greater financial protection.
Portability Limitations:

Combined Policy Challenges: You're right; combined term and health insurance policies like Click 2 Protect 3D can be difficult to port due to their integrated nature. While individual term insurance plans are generally portable, porting health components often faces challenges.
Alternative Solutions:

Consider Separate Policies: Explore the possibility of purchasing separate term life insurance (potentially with a higher sum assured) and a new health insurance plan from another provider that better suits your needs and budget. This might involve surrendering the Click 2 Protect 3D policy, but it could offer more flexibility and potentially lower costs in the long run.
Negotiate with HDFC Life and ERGO: You could try negotiating with HDFC Life and ERGO to see if they can offer a more competitive premium or increased coverage within the existing plan.
Here are some additional tips:

Compare Online Quotes: Use online insurance comparison platforms to get quotes for separate term life and health insurance plans from different providers. This can help you compare coverage options and premiums.
Focus on Needs, Not Just Cost: While cost is important, prioritize getting adequate coverage for your term and health needs. Don't compromise on coverage just to get a lower premium.
Remember:

Carefully review the terms and conditions of any new policy before purchasing.
Consider factors like your age, health condition, and family needs when determining your required coverage amount.
By thoroughly evaluating your current plan, exploring alternatives, and comparing options, you can make an informed decision about whether to adjust your Click 2 Protect 3D policy or switch to separate plans for better coverage or affordability.

Ans: It's understandable that you're concerned about the increasing premiums and the perceived lack of benefits in your current insurance policy. Here are some steps you can consider:

• Review Your Policy Documents: Make sure to thoroughly review your insurance policy documents. Understand the terms and conditions, coverage details, and any clauses related to premium increases. It's essential to be aware of the specifics of your current policy before making any decisions.
• Compare Policies: Compare the benefits and premiums of your current policy with those offered by other insurance providers in the market. Look for policies that provide similar or better coverage at a more reasonable cost. Take into account the coverage for both term insurance and health insurance.
• Contact Your Current Provider: Reach out to HDFC Life and ERGO to discuss your concerns. Inquire about the reasons for the premium increase and whether there are any options to customise your policy to better suit your needs without compromising coverage. Sometimes, providers may have different plans or options that could better fit your requirements.
• Explore Portability Again: Since you mentioned that Star Health denied portability, consider reaching out to other insurance providers to explore portability options. Different providers may have different policies on porting combined policies, and it's worth checking with multiple companies.
• Seek Professional Advice: Consult with a financial advisor or insurance expert to get personalised advice based on your specific situation. They can help you understand the nuances of your policy, assess your needs, and guide you on the best course of action.
• Consider Separate Policies: If portability remains challenging, you may explore the option of having separate term insurance and health insurance policies from different providers. This way, you can tailor each policy to your specific needs and potentially save on costs.
• Stay Informed About Regulatory Changes: Keep yourself informed about any regulatory changes in the insurance industry that may impact your policy. Sometimes, regulatory changes can affect premium calculations or portability options.

Remember that making changes to insurance policies requires careful consideration, and it's crucial to ensure that you maintain adequate coverage for your family's needs. Always read the terms and conditions of any new policy thoroughly before making a decision. If needed, seek legal or financial advice to make an informed decision.

Ans: Porting a health policy means transferring your existing health insurance to a new insurer without losing benefits. It can offer advantages if the new policy is superior. However, porting should be carefully evaluated.

Evaluate the Existing Policy
Coverage and Benefits: Review your current Care Supreme Health Policy. Assess the coverage, sum insured, and benefits.

Claim Settlement: Check the claim settlement ratio of your current insurer. A higher ratio suggests better reliability.

Assessing Star Health Assure Policy
Benefits Comparison: Compare the benefits of the Star Health Assure Policy with your current policy. Look for coverage, sum insured, waiting periods, and exclusions.

Claim Settlement Ratio: Investigate recent claim settlement ratios for Star Health. Your friend mentioned a poor ratio. Confirm this with reliable sources.

Additional Features: Check if Star Health offers any additional features or benefits not present in your current policy.

Importance of Claim Settlement Ratio
Reliability: A poor claim settlement ratio can indicate potential issues in claim processing.

Customer Feedback: Look for reviews and feedback from existing customers of Star Health. This can provide insights into their service quality.

Considerations for Porting
Waiting Periods: Porting may involve new waiting periods for pre-existing conditions. Ensure you understand these before making a decision.

Premiums: Compare the premiums of both policies. Ensure that the new policy offers value for money.

Policy Terms: Read the terms and conditions of the new policy thoroughly. Ensure there are no hidden clauses.

Seek Professional Advice
Certified Financial Planner: Consult a Certified Financial Planner. They can provide a 360-degree assessment of your needs.

Healthcare Needs: Ensure the policy meets your mother's healthcare needs adequately.

Final Insights
Health insurance is crucial, especially for senior citizens. Porting should enhance benefits and reliability. Carefully evaluate both policies, considering coverage, claim settlement ratios, and overall value.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in