These days, more and more people are getting covered by a health insurance. Due to the rising cost of healthcare, having this kind of financial protection can be an essential safeguard in case of unexpected medical emergencies.

However, if one policy is good, are there any benefits to buying multiple medical policies for extra protection?

It is definitely possible to get a second, or even a third health insurance plan. Indeed, it can be a great way of getting additional or more comprehensive coverage. It can also serve as a backup to an employee health insurance, and can reduce the risk for those with pre-existing conditions.

However, it is important to remember that having more than one plan does not mean that you get reimbursed twice for a medical treatment. Even when you have more than one plan, the total amount that they will cover at the time of a claim will not exceed 100% of the treatment cost.

For example, if you get a surgery, you will choose one plan to pay for this up to its coverage limits. Once this insurer has paid the amount, the remaining bill goes to your second or third insurance, which will then cover part of or all of the remaining costs, again up to its coverage limit.

Having a second, or even multiple health insurance policies can have a number of benefits, such as:

1. Wider Coverage

Having more health plans will give you the scope to have more widespread coverage. If you look closely at your first policy, you can choose the second and any subsequent policies based on what is not covered in that policy, such as a critical illness cover, or a maternity cover.

Additionally, if your primary plan is an Employee Health Insurance, having an additional plan will ensure that you have consistent coverage even after you leave the company.

2. More Effective Premiums

When you invest in multiple health policies with smaller covers instead of one plan with big coverage, you are likely to have lower premium amounts. And, the smaller covers can ultimately lead to having more widespread coverage as mentioned above, without placing too much stress on your pocket.

3. Coverage for More Specific Conditions

When you have multiple policies, you have the option to cover more illnesses. For example, by having one generic policy and one specific policy you can cover both basic hospitalization and treatments as well as critical conditions through a Critical Illness Policy.

Based on your and your family’s situation, you can also opt for Individual Plans, a Family Floater Plan, or COVID-19 Insurance, to maximize your coverage as compared to one generic plan.

4. More Efficient Policy Management

When you have multiple policies, you will be able to decide which one to make a claim against, should such a situation arise. This way, you can ensure that one policy remains undisturbed and earn a No Claim Bonus or Cumulative Bonus for a claim-free year.

5. Protection Against Claim Rejection

In case you make a health insurance claim, and it is rejected, it can be a financial disaster. But when you have more than one insurer, the claim that was rejected by one insurer might be accepted by another.

6. Further Tax Benefits

Having multiple health insurance plans will also result in additional tax benefits under Section 80D of the Income Tax Act. When you have a health plan, you can further claim tax returns and actually save money on income tax.

There are a number of reasons why you might wish to have two or more health insurance plans:

• You are covered only under a group plan like your parent’s Family Floater Plan and or an Employee Health Insurance and you want additional coverage from an Individual Health Plan.
• You only have an Individual Health Plan and need more specific coverage like a Critical Illness Plan or a COVID-19 cover.
• You have just gotten married and wish to get a Family Floater in addition to either an Individual Plan or an Employee Health Insurance.
• You require a Top-up or a Super Top-up Plan over and above your current policy.

All of these scenarios will help you to ensure a strong health insurance portfolio that will provide financial stability in a health crisis.

When you opt to buy a second (or even a third) health insurance plan, it is essential to go through the fine print of the policy in detail to ensure that you are making the right decision. Here are some things to keep in mind:

• Look at the Coverage – see what is covered in the second policy you wish to get, and ensure that it will offer a wider range of coverage than your first policy.
• Go Through the Terms – check the details of the policy such as co-pay clauses, room rent conditions, sub-limits, deductibles, and more.
• Note the Sum Insured – look at what the SI of the policy is, and check that it is enough for your needs when added to your current coverage.
• Check the Renewability – opt for a plan that offers lifetime renewability, especially if your current plan only covers you until a certain age.
• See if You Need a Critical Illness Add-on or a Top-up Plan – many insurers have the option of adding to your existing coverage top-up and super top-up plans, or with add-ons for critical illness cover, or maternity cover. Check if this additional coverage will fulfil your needs before opting for a second insurance plan.

With rising healthcare costs, it is becoming increasingly common for people to have more than one health insurance policy. For example, people might have critical illness plans and personal accident policies in addition to regular health insurance to have increased coverage. But ultimately, it is up to you to decide whether you wish to go for higher coverage under one single plan or purchase smaller covers under multiple policies.