Is a global health insurance plan right for you?

Q: Can I buy a global health insurance plan from India? How does the claim process work? Is it cashless or would I need to pay upfront and seek reimbursement?

- Name withheld on request 

If you’re looking for global health coverage, you have two main options. The first is to opt for plans offered by some Indian insurers, which come with high sum assured options. However, these plans may have specific conditions for international coverage, such as limiting treatment to emergencies or specific critical illnesses.

The second option is to buy a comprehensive global health plan from the international market. These plans often cover pre-existing conditions without a waiting period but can be significantly more expensive. This only makes financial sense if you spend considerable time abroad and are likely to undergo elective treatments outside India.

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As for the claim process, it varies by insurer. Both cashless and reimbursement options are generally available. For cashless treatment, insurers typically work with global TPAs (Third-Party Administrators) that have networks of hospitals worldwide. You would need to notify the TPA in advance to arrange cashless coverage. If cashless isn’t available at a specific hospital, you can file for reimbursement by submitting the necessary documents.

Q: At 65, how much life insurance should I maintain? I have a life insurance policy with a ₹5 crore sum assured that I bought 15 years ago. It has 10 years left and the premium is locked in at my age of 50, making it much cheaper than current rates for my age. My son is married and lives abroad. My wife and I are retired and rely on investment income to maintain our lifestyle. I have no other dependents.

- Name withheld on request

The main purpose of term insurance is to replace the primary breadwinner’s income for dependents in the event of their untimely death. 

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In your case, you no longer have active income to replace, and you don’t have financial dependents. If you were to pass away before your wife, the investment income that currently supports both of you would continue to be available for her. 

Since your financial plan already accounts for her needs, the core objective of term insurance has effectively been fulfilled. Continuing the policy may not be necessary, but since your premium is locked in at a lower rate, you could choose to keep it as a legacy asset or to cover any unforeseen expenses.

Abhishek Bondia is a principal officer and managing director at SecureNow Insurance Broker Pvt. Ltd.