According to industry experts, insurance product customers are now increasingly opting for floating family plans with riders that pay for consumables and home quarantine.
Many consumers are making the effort to be more involved and educated about health insurance due to the situation created during the second wave of Covid infection. “There has always been this need to explain and educate different aspects of health insurance to people that could help them in different scenarios. However, now people are more aware of things and they know what they want. They also started asking the right questions about the different features and benefits associated with various life insurance plans. This proves that there is a greater level of awareness and understanding among customers,” says Naval Goel, Founder and CEO of PolicyX.com, an insurance web aggregator.
What do riders with family floating plans cover?
While comprehensive policies cover the treatment of Covid infections, including Omicron, there was a need to reduce out-of-pocket policyholders with some additional services. Therefore, health insurance companies have introduced endorsements that cover consumable items such as PPE kits, gloves, masks, and other items not usually covered by the health insurance plan.
“It was observed in the second wave that home quarantine or admission to makeshift hospitals occurred due to lack of beds in hospitals. So people are opting for plans that cover home care so that their health insurance can be used for (situations) other than hospitalization,” says Goel.
Some health insurance companies offer features like consumables coverage and home quarantine either as a built-in feature or as an add-on. Tata AIG MediCare covers consumables as an integrated feature. Niva Bupa offers a Safeguard endorsement, which includes the cost of consumables such as PPE kit, gloves, etc. Care Health Insurance offers the Care Shield endorsement which covers gloves, masks, suspenders, belts, spirometer and other consumables in the event of hospitalization.
You cannot opt for these riders at renewal. For this, you will have to buy a new health insurance policy or change policies.
The pandemic defines new segments
The Covid pandemic has created a new demand for insurance. Previously, consumer goods were not covered by health insurance, but during the pandemic, consumer goods have become very important and highly sought after. Additionally, consumable items often account for up to 30% of the hospital bill, which can weigh heavily on customers. “Therefore, endorsements for consumables have been introduced. Likewise, home quarantine and makeshift hospitals are relatively new concepts designed to balance the strain on the healthcare system during the pandemic where the same type of treatment occurs. produced under the professional guidance of physicians and specialists,” adds Goel. Therefore, health insurance schemes must also compensate treatment expenses in these non-hospital settings, in the same way as for hospital treatment.
Things to keep in mind
It is essential to keep several factors in mind when buying floating family plans. Primarily, the sum assured of the plan must be enough to meet the needs of each family member, especially when an elderly person is part of the family floating plan. “The family floating plan should be comprehensive enough to ensure that the health needs of each family member are covered across different age groups. Along with this, look for less waiting period and lowest capping on different things like room rent, OPD fee and co-payment,” adds Goel.
As the third wave of Covid spreads, it is important that people have comprehensive health coverage that they can rely on.