You will find this interesting 🤯

Health Insurance premiums for a plan are as follows:
5 Lakh cover = Rs. 13410/-
25 Lakh cover = Rs. 24759/-
1 Crore cover = Rs. 18003/-
Wut? Yes. How? 🤔

Thread time 🧵:)

We checked if the plans were different.

What we found is that apart from the room eligibility there is no other significant difference between the plans.

This may have called for a lower “per lakh” premium, but it does not justify a discount of 37% for a 400% higher cover
So we dug deeper :)

We checked, rechecked, spoke to experts and the answer came down to simple market mathematics 🧮

Something you need to understand well.
Say you have a mobile plan with a quota of 3GB of data a day.

The average usage is say 2 GB a day.

Now if you apply for an upgrade to 10GB a day - the telco knowing this will rarely be utilised, can upgrade the plan at an extremely low cost, and not at the per GB rate.
Similarly, when you today buy a cover of 25 Lakhs. Since the average claims are say 3 Lakhs today, there are very tiny chances you will use the cover over 10 Lakhs in the short term.

So whatever amount the insurer charges today over 10 Lakhs is a bonus.
But here's what you should know:

Once claims increase, every insurer can hike premium rates post approval from the regulator.

Premiums can be hiked, the product can be withdrawn moving u to an elite product with way higher premium grids.
What you should do❓
1. Even if premiums will be hiked in the long run, you still need a high cover.
2. Ensure u buy adequate cover for your old age today. If you are 35, you will need 26L at 70 (5% inflation)
3. Do not postpone.
4. Upgrades are difficult if you have an illness
5. ⚖️ Compare premiums for the adequate cover with higher covers available.
6. If you find the difference in premium negligible or lower (like in the first tweet) take the higher cover.
7. Remember, it’s super easy to downgrade ⤵️ cover, if premiums become unaffordable.
Questions?
Insurance experts can answer them here:

https://t.co/JYfL15hGWt

More from Health

You gotta think about this one carefully!

Imagine you go to the doctor and get tested for a rare disease (only 1 in 10,000 people get it.)

The test is 99% effective in detecting both sick and healthy people.

Your test comes back positive.

Are you really sick? Explain below 👇

The most complete answer from every reply so far is from Dr. Lena. Thanks for taking the time and going through


You can get the answer using Bayes' theorem, but let's try to come up with it in a different —maybe more intuitive— way.

👇


Here is what we know:

- Out of 10,000 people, 1 is sick
- Out of 100 sick people, 99 test positive
- Out of 100 healthy people, 99 test negative

Assuming 1 million people take the test (including you):

- 100 of them are sick
- 999,900 of them are healthy

👇

Let's now test both groups, starting with the 100 people sick:

▫️ 99 of them will be diagnosed (correctly) as sick (99%)

▫️ 1 of them is going to be diagnosed (incorrectly) as healthy (1%)

👇

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