Making the choice between Corona Kavach Policy and a Top Up Plan

By September 15, 2020 Money Matters

Sourced with thanks from timesnownews.com

In the face of the COVID 19 pandemic, people have been increasingly looking strengthening their current insurance cover by either taking a Corona Kavach policy or taking a top-up plan on the existing policy. How do you know which would be better for you? To help you take a considered decision, the article below would be useful wherein the author has provided a detailed comparison between the two alternatives – Corona Kavach Policy and a Top Up. Team RetyrSmart

Making the choice between Corona Kavach Policy and a Top Up Plan

The details below will help you take a decision best suited to you

Corona Kavach policy:

For the uninitiated, Corona Kavach is a standard health insurance policy which provides cover for medical expenses arising due to Covid-19. The policy is available on individual, group and family floater basis. It offers Covid Hospitalization cover and optional cover on Benefit Basis.

The sum insured under this policy is Rs 50,000 to 5,00,000 (in the multiples of fifty thousand). The waiting period is 15 days and policy period is three and half months (3.5 months), six and half months (6.5 months), nine and half months (9.5 months) including waiting period.

Web aggregator Policybazaar recently tied up with prominent insurers to sell Corona Kavach as an add-on with term insurance policies. While Corona Kavach will take care of the entire cost of treatment in case you are infected with the novel coronavirus, your term plan will financially take care of your dependents in your sudden demise due to the epidemic or any other reason.

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Advantages of Corona Kavach add-on:

  1. Enhanced coverage: Corona Kavach policy covers your Hospitalization Expenses, Medical Expenses of Hospitalization on the diagnosis of Covid, Pre Hospitalization Expenses for 15 days, Post Hospitalization Expenses for 30 days, PPE costs, room rent, nursing cost, ICU cost, surgeon’s fee, doctor’s consultation fees etc.
  2. One-time payment: You only have to pay the premium for Corona Kavach policy once at the time of purchase, unlike periodic premium payment for other medical insurance covers.
  3. Short waiting period: The waiting period for the Corona Kavach cover is 15-days meaning you can make a claim and benefit from the cover after 15 days of its purchase.
  4. Affordable premium: Since the Corona Kavach provides insurance against only Covid 19 and that too till March 31, the premium cost is low compared to a full-fledged annually renewable multi-disease cover insurance plan.
  5. Covers AYUSH treatment: AYUSH treatment expenses are covered under the Corona Kavach including Ayurveda, Unani, Siddha, homoeopathy

Top-up, super top-up plan:

A top-up plan supplements the base health insurance plan by providing additional coverage above the sum assured available. In case of a top-up plan there is a deductible, which is the initial claim amount that is not covered under the policy. The claim amounts that crosses the deductible is paid under a top-up plan.

Advantages of Top-up/super top-up plans:

1 Wider coverage: A health insurance top-up/super top-up plan offers coverage against several medical emergencies including coronavirus. It also offers financial backup in case your base policy limit is exhausted.

  1. Inflation rate: A top-up/super top-up plan also helps in dealing with the growing inflation rate since it allows you to have a high sum assured at an affordable premium.
  2. Cover pre-existing disease: If your existing health insurance policy doesn’t cover pre-existing diseases, a super top-up plan can offer coverage for such diseases subject to certain terms and conditions. However, these top-up plans are likely to come with a higher premium.
  3. Lifelong renewability: A super top-up plan covers the Covid-19 disease apart from other ailments and offers lifelong
    renewability.

Top-up, super top-up plan vs Corona Kavach policy : The better option for you

There is no answer that suits everyone. Policyholders should evaluate their current health policy and decide which option would benefit them more. Evaluate your existing policy to know whether you would like to opt for a specific disease cover for a short duration or a super top-up plan.

As per experts, if you have a regular health insurance policy for you and your family members with a reasonable sum assured, then Corona Kavach may not make much sense since your current health insurance will cover for Covid-19 treatment as well. Ideally, Corona Kavach policy should not replace your comprehensive health insurance policy but can be purchased by someone who doesn’t have any form of health insurance.

However, if you do not have reasonable sum insured in your current health insurance cover, you may consider buying a super top-up plan instead of a top-up plan either. In case you have a regular health policy with a sum assured of Rs 10 lakh, you can add a super top-up to increase the sum assured available to you. Buying a super top-up of Rs 5 to 10 lakh to increase the total coverage to Rs 15 to 20 lakh amid the current situation seems like a good decision.

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