Let’s say your insurance company offers an illness-specific policy, and you are buying another health policy to hedge against medical emergencies.
Opting for a comprehensive life insurance policy is an excellent idea. However, many policyholders also choose a second insurance plan. As a newbie, you might be wondering how both insurance plans benefit you doubly.
Given the rapid rise in medical expenses, the need for health policies is already significant. Besides, there’s limited coverage by one health insurance plan, which has made consumers buy another (or more) medical policy. If you want to learn how a second life health insurance policy benefits you, keep reading on.
Investing in more than one company provides all-inclusive coverage to the individual. Additionally, two or more health insurance covers help in mitigating several risks from ailments like coronary disease, diabetes, etc. And here go the top benefits of having a second insurance plan.
1. Protection Against Claim Rejection
There’s no guarantee that your claim will get approved come what may it is. And scenarios, where a claim receives a denial can result in despair. No wonder paying for a massive bill amount of a hospital becomes a nightmare if you are going to pay it from your pocket. This is where having two life insurance policies can be a safer bet.
Suppose your claim gets rejected by the insurer of your life plan. If you apply it through the other life insurance, it might get approved. So, the chances are that you would not lose all your money. Getting covered under two or more health insurance coverage plans will act as a cover against rejections.
2. Diversify Across Different Insurance Companies
A health insurance policyholder can purchase other insurance plans from multiple insurers. In this manner, it becomes fairly easier to diversify across the different insurance companies. Not just that, it helps in seeking the benefits from the individual coverage policies.
The companies will settle claims in accordance with contribution clauses. If your sum insured is not equal to the amount you claimed, you can always claim for that same amount from another (or other) health insurance company(s). Any payment for the pre-existing illness is made by both the insurers based on the norms.
3. Opting for Smaller Cover
If you have both health and life insurance plans with smaller covers, it adds up to the massive coverage. In addition to this, it also becomes more cost-effective. Having two or more smaller cover policies add up to the bigger cover eventually.
It ends up paying lower premium amounts in comparison with the single plan investment. As a matter of fact, a single plan investment plan would include a bigger amount. That’s a significant reason to opt for two or multiple insurance plans.
4. Lower Premiums
When a policyholder purchases two or more health policies with small covers, it considerably lowers the overall premium amounts. The amount is lower than the bigger coverage, which otherwise would be required while investing in one single policy with bigger coverage.
Similarly, the smaller covers from two or multiple coverage plans add up to bigger coverage. You don’t have to spend the money from your pocket (as already mentioned in point number 3)
5. Personal health policy and critical illness plan
Besides the regular personal insurance plan, a critical illness policy also offers protective cover. However, the health insurance plans do not cover critical illness or high expense diseases plans. Thus, a policyholder can purchase both plans. This way, one does not only maximize the coverage but also minimize the risks.
The Bottom Line
When you decide to have a second insurance plan, always go through the health documents first. Whether or not you have enough funds is another parameter that determines your selection of insurance company or insurer. With these things kept in mind, you can choose your reliable insurer without a second thought.