Financial Planning: Should I Add a Top-Up Plan to My 1 Cr Term Insurance?

Ans: You can go with any health insurance company with whom you are comfortable as all the companies are the same

Ans: Here’s some information to help you make an informed decision.

Some things to consider when choosing a family floater plan for yourself, your wife, and your two daughters:

1. Coverage amount:

Rs 20 lakh per person seems like a reasonable starting point, but consider your family's income, expenses, liabilities, and future financial goals. You may want to opt for higher coverage depending on your needs.

2. Plan type:

Individual vs. Family Floater: A family floater plan is generally cheaper than individual plans, but the shared sum insured can be exhausted quickly if someone in the family makes a large claim. Consider your family's health history and risk tolerance when making this decision.

3. Policy inclusions and exclusions:

Carefully review what the plan covers (hospitalisation, critical illness, etc.) and what it excludes (pre-existing conditions, specific procedures, etc.). Choose a plan that aligns with your family's potential health needs.

4. Network hospitals:

Check if the plan has a wide network of hospitals wherever you stay, especially the ones you and your family frequent. This can help reduce cashless claim hassles.

5. Premium:

Compare premiums from different insurers before making a decision. Consider factors like coverage amount, plan features, network hospitals, and claim settlement ratio.

6. Additional factors:

• Riders: Consider adding riders like critical illness cover or personal accident cover for additional protection.
• Claim settlement ratio: Check the insurer's claim settlement ratio to understand their claim processing efficiency.
• Customer service: Look for an insurer with a good reputation for customer service to ensure a smooth experience in case of claims.

7. Recommendation:

It is highly recommended to consult with a licensed financial advisor in Bengaluru who can assess your specific needs and recommend the best family floater plan for your family based on your budget, risk tolerance, and health history. They can also help you compare plans from different insurers and guide you through the application process.

Ans: Unfortunately, finding a new health insurance policy with pre-existing conditions like open-heart surgery can be challenging, especially at the age of 69. Here's why:

• Pre-existing Conditions: Most insurers are hesitant to cover pre-existing conditions, and open-heart surgery falls under that category.
• Age: As you age, premiums tend to rise, and insurers might be more cautious about taking on new senior citizens.

However, there are still some options to explore:

1. Renew Existing Policy with Oriental:

Check with Oriental Insurance Co. again regarding renewal. While they might not increase the sum insured to 15 lakh, they might still offer renewal on the existing 10 lakh plan.

2. Senior Citizen Mediclaim Plans:

Many insurers offer senior citizen health insurance plans designed for people above 60. These plans may have limitations on pre-existing conditions, but they could offer some coverage. You can explore options from reputable companies like Max Bupa, Care Health Insurance, or Cholamandalam MS. Research these companies online or consult an insurance broker for plan details.

3. Top-up Plans:
These plans work alongside your existing policy and provide additional coverage in case your existing sum insured gets exhausted. However, pre-existing condition exclusions might still apply. Explore top-up plans offered by your existing insurer or other companies.

4. Finding the Right Plan:

• Use online insurance comparison platforms or consult an insurance broker to compare different senior citizen mediclaim or top-up plans.
• Carefully review the policy documents, especially exclusions related to pre-existing conditions.
• Consider factors like network hospitals, co-pay clauses, and claim settlement ratio before finalising a plan.

Ans: Your financial foundation is solid.

Insurance: You already have Rs. 1 crore term insurance and PSB health cover—this is good.
Loan Repayment: Rs. 3 lakh loan isn’t a big burden. If interest is above 9%, prepay it soon. Otherwise, continue EMIs and invest extra in mutual funds.
Next Steps: Focus on increasing SIPs in equity mutual funds and avoid locking surplus in FDs.
Keep reviewing your investments yearly!

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment