Does Arogya Sanjeevani’s health insurance policy suit anyone?

Some financial planning professionals believe that such a policy is a good entry product. Others believe that 5 Rakh insurance is insufficient to cover a family of four (two adults and two children).

The India Insurance Administration and Development Authority (IRDAI) has asked all insurance companies to provide Aarogya Sanjeevani policy from Apr 2020.

This is a standard health insurance policy for individuals and families who provide coverage of up to 5 lakh for the basic costs associated with hospitalization. In addition, perhaps to make the product simpler to understand, the regulatory authority has banned the insurance company from impose deductions or give the driver and variations to the policy.
Some financial planning professionals believe that such a policy is a good entry product. Others believe that 5 Rakh insurance is insufficient to cover a family of four (two adults and two children).

Naval Goel, CEO & Founder of said Arogya Sanjeevani’s policy was a simple basic health insurance policy. “It’s relatively cheaper and offers the option of receiving a premium of up to just 5 rupees. In addition, it does not have the features that a comprehensive health policy is fully loaded. For example, it has a co-payment of 5% which may not be in a fully-loaded policy, “Goel said.

However, the regulatory body has requested a 5 percent increase in the amount of insurance per year with no claim at a maximum of 50 percent of the guaranteed amount, as long as the policy is renewed without breaking.

Now let’s take a closer look at who should consider and who should not consider purchasing this health insurance contract.

Who should consider buying it?

Arogya Sanjeevani policy may be appropriate for first-time medical insurance buyers because the product not only provides broad coverage at an affordable rate, but also the terms, terms, and conditions of the policy are standard (from the general policy) on all insurance companies. This makes it easier for individuals to understand the policy.

Praveen Bajpai, founder of & Management partner, Finfix Research & Analytics explains why it fits the buyer of the policy for the first time with a limited budget: “Despite the growing awareness of health insurance needs, its penetration capability continues to below. India. The clutter and complexities of health insurance policies and their disconformity on premiums have prevented a median household from purchasing health insurance. This is what Arogya Sanjeevani’s policy gives to simplicity and standardization in the structure and reasonable premium structure. “

Therefore, if you are working but are not dependent and unmarried then you may consider purchasing this policy.
Marin Agarwal, founding director, Finsafe said, “Arogya Sanjeevani’s policy is beneficial for young people seeking a comprehensive cover for themselves.

It may not be suitable for anyone

As the insured amount under Arogya Sanjeevani’s policy is limited to 5 rupees, as mentioned above, it is suitable for a young, first-time insurance buyer. However, due to the high cost of health care, the 5 lakh compensation may be insufficient, particularly for a person living in large cities. Bajpai says: “Someone who has the ability to pay higher premiums, live in a subway or a large city should seek protection beyond the policy of Arogya Sanjeevani to ensure the conformity of health insurance “.

In such cases, you can use other health insurance policies with a higher amount of insurance. But before purchasing a policy, you must consult a financial advisor.

Moreover, if you have a dependent, then you may consider purchasing a health insurance contract for the floating person. “For those individuals who have dependencies including children/parents, higher insurance is covered by the warranty and therefore they can choose policies based on insurance and include (on request). The policy of Arogya Sanjeevani has a limit of 5 lakh will not be enough for families, “Agarwal said.

So if you are looking for a health insurance policy with higher premiums or have had full basic health coverage, Arogya Sanjeevani’s policy may not be right for you. In fact, you should consider a superclass health policy.

Most insurance professionals believe that the Superlevel plans are designed to enhance health coverage of the existing health care program. It can be purchased as an add-on to upgrade the total guaranteed amount of the base package as it plays additional roles for the underlying package and also pays for multiple bill payment requests. Moreover, buying a comprehensive medical policy other than the higher money guarantees always overpriced.  “A super-level plan compensates for all costs that exceed the base cost for a one-time hospitalization. This plan is a regular compensation plan that can be renewed annually. However, you must know that the Superlevel plan is only valid once the deduction limit is passed,  “according to insurance industry experts.

Points to noteAlthough the coverage of the health policy Arogya Sanjeevani is popular for all insurance companies, the premium and customer service levels can vary from insurance companies to other insurance companies.

Goel says:  “The rate is determined by the insurance company based on their expectation of the rate required, etc. based on the assumptions. Each insurance company’s calculation team can make different assumptions and, therefore, the proportion of different insurance companies may differ. The quality of service offered by all insurance companies is not the same. This is another reason for the difference in price. “