Smart Health Insurance: Adjusting Coverage For Milestones And Medical Inflation

Health insurance isn’t a one-time decision; it should evolve with your life. At renewal, we encourage customers to reassess major milestones like marriage, childbirth, or aging parents and adjust coverage accordingly.

“Insurance brokers act as advisors, guiding clients to move from individual to family floater plans, enhance the sum insured, add critical illness or maternity riders, and reduce co-pays as income and needs change. The objective is continuous, right-sized protection through every life stage,” says Narendra Bharindwal, president, Insurance Brokers Association of India (IBAI).

Review, Renew, Reassess: Keeping Your Health Cover Current

With medical costs rising each year, it is more important than ever to assess whether any modifications are required based on individual or family healthcare needs.

Insurers increase the sum assured if there are no claims during the year by adding a cumulative bonus to the sum assured. “Policyholders can also upgrade their health insurance at renewal by increasing the sum insured, adding riders, or including add-ons as their needs grow. A young individual may require basic coverage, but as life evolves, it becomes important to modify the plan,” says Bhaskar Nerurkar, head- health administration team, Bajaj General Insurance.

From Individual To Family: Adjusting Policies As Life Changes

After getting married, you might want to switch from an individual health plan to a family floater policy. At the same time, adding a maternity rider can be considered, keeping any waiting periods in mind. As life evolves, your health needs change, so it’s wise to review and update your insurance coverage periodically to ensure your protection keeps pace with your circumstances.

Flexibility to modify or change health plans varies from insurer to insurer. “However, many plans and insurers offer modifications to health plans at renewal. It may include enhancing coverage, adding riders or add-ons, adding or removing members from the policy, maternity rider (if the plan offers), critical illness coverage (which can typically be added as a rider), personal accident cover, top-up plans, and more,” says Nerukar.

It means that, depending on the plan and insurer, and subject to underwriting approval, one can make changes to their policy based on evolving needs.

Tech Meets Protection: Using Digital Tools To Right-Size Coverage

Many insurers offer digital tools to determine whether a policyholder’s current sum insured is sufficient to protect them financially, based on their age, location, family size, and the rising cost of medical care. “With the information provided by customers, such as their lifestyle and family history of diseases, these tools can also identify relevant riders or guide customers for add-ons or a top-up to pick,” says Nerukar.

A structured health insurance adequacy review thus benchmarks the customer’s cover against current hospitalization costs, adjusts for medical inflation, and factors in lifestyle or family changes. “Through digital tools and broker-assisted consultations, we simulate real-life scenarios to show how coverage might fall short over time. This ensures customers make informed choices and remain adequately protected, not just insured,” says Bharindwal.