09 January 2018

Disadvantages of health Insurance by banks.

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*# You must be account holder of the bank*

Such health insurance by banks is available only for bank customers who have savings account with the bank. You may all know that the current charges applicable to normal savings accounts. If the savings accounts is actually a NEED, then it is wise to tie up with such health insurance products.

However, if you are opening the account for the sake of buying this health insurance product, then keep in mind that you have to bear the cost of managing such savings accounts like MAB and other charges.

*# Sum Insured Limit*

Such Health Insurance products offer you limited sum insured amount. Especially few products restrict the sum insured after a certain age like after 65 years of age the sum insured will be Rs.5 lakh only. Hence, such restrictions may be the biggest hurdle considering the current cost of hospitalization.

*# Premium Issue*

*This is the contract between the bank and insurance company. Hence, if the insurance company felt the claims raised drastically, then they increase the premium next year. Because it is just ONE YEAR CONTRACT.*

In such situations, you may end up with either to cough more premium or stay away from the product.

*# Features may change*

Like premium, even the insurance company may alter the features while offering next year. Hence, looking at features while buying initially may not work out. Instead, you have to check whether there are any alterations or not. on yearly basis.

*# Contract may end or bank may stop this facility*

*_There is no promise from your bank that they provide you such insurance lifelong. Hence, if they feel the insurance company not suitable to them or such service costing them a bit, then they may end up this facility._*

Such situation leads you to be away from the health insurance. If such situation arises, then the effect will be horrible for those who are older and unable to buy the individual health insurance separately. They have to end up with NO HEALTH INSURANCE during their age where the possibility of hospitalization is HIGH.

*# Banks are not agents*

You are buying the product from the bank. However, keep in mind that banks are not agents. Hence, when it comes to service, they may not help you. You have to directly interact with the insurance company.

Hence, never be in wrong belief that Bankers will help you in claim settlement.

# Restriction on entry age

There may be a restriction in entry age. Like in case of Canara Bank Apollo Munich health plan, the entry age is 5 years. However, for dependent children, it is 91 days to 25 years ONLY.

*# Check exclusions, Co-Payment or Room Rent Sub Limits*

Such plans have a long list of exclusions, co-payment clauses, and room rent sub-limits. Hence, the highest importance must be given to check these features. But Canara Bank’s Apollo Munich Health Insurance has no such limits and clearly explained as No pre-policy check-up, No Sub-limit on hospital room rent and No Co-payment.

*# Banks may mislead you*

Nowadays banks tied up with many insurance companies to sell their products. In such a situation, banks may mis-sell you the health insurance product rather than such group insurance.

Hence, you must know what bankers offering you. Cross check whether the health insurance they are offering you is group health insurance or individual health insurance (which include family floater). Then only go ahead and buy.

Now you have to decide whether you should go with Health Insurance by banks or go for individual plans separately. If someone has already purchased such plans, then please share your experience so that it may be learning for me and other readers also.

*Conclusions-I always suggests having your own policy than relying on such uncertain group products. However, if you are looking health insurance for elders who have some health issues and due to which premium is not affordable or the insurance company denying your proposal, then you definitely opt for such plans.*

source : Unknown 

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