Health insurance has now become an imperative part of financial planning in India. With spiralling healthcare costs and the rise of lifestyle diseases, it is not only a safety net but also a necessity to have health insurance. Health insurance provides insurance against unexpected medical costs and hence saves your savings. On the other hand, it is a tough job to select a suitable insurance policy when there are so many options. In order to assist you in making an informed choice, let us now explore the various types of health insurance and strategies to bear in mind when considering a health policy.
Types of health insurance –
- Individual health insurance: As the name suggests, this policy is designed for individuals. It includes the bills paid for the medical treatment of the policyholder. The policy premium is determined by the individual’s age, medical history, and current health condition. Personal health insurance offers a complete package that includes hospitalisation, pre- and post-hospitalisation costs, and day-care expenses.
- Family floater health insurance: The policy covers the whole family under one comprehensive policy. It adopts the policyholder, spouse, dependent children, and in some cases dependent parents. The premium of the insurance policy is determined using the term insurance premium calculator which is based on the age of the eldest member. One of the main advantages of this policy is that any of the family members can take advantage of the sum insured.
- Senior citizen health insurance: This policy is targeted to individuals aged 60 years and above to address their health needs. Due to the high rate of health risks at this age, the policies provide cover for age-related health issues, pre-existing diseases, and critical illness. Sometimes these plans include facilities like the increased sum assured, cover for day-care procedures, and cashless hospitalisation.
- Critical illness cover: Critical illness coverage is a type of health insurance policy that pays out a lump sum if the policyholder is diagnosed with certain pre-specified critical diseases such as cancer, heart attack, or stroke. The monies might be used for treatment, recuperation, or to compensate for lost income during the recovery time.
- Maternity health insurance: This coverage covers childbirth-related expenditures, such as prenatal and postnatal care. It covers birth costs (both regular and caesarean), newborn infant coverage, and immunisation fees for the baby. However, these plans frequently come with a waiting time.
- Personal Accident Insurance: This coverage covers hospitalisation and treatment costs resulting from an accident. It offers compensation in the event of a temporary or permanent impairment caused by an accident. In the sad event that the policyholder dies as a result of an accident, the insurance pays out the guaranteed amount to the nominee or legal successor.
Strategies to consider before purchasing a health insurance policy –
- Evaluate your needs: Conduct a self-assessment of your health, lifestyle habits, family health history, and personal medical history. If you have a family history of certain illnesses or have lifestyle practices that put you at risk, you should get insurance that expressly covers those disorders.
- Comprehensive coverage: A comprehensive health insurance policy provides coverage for a wide variety of medical issues, including pre-existing disorders and urgent illnesses. This guarantees that you are financially protected from a variety of health concerns.
- Consider the sum insured: The sum insured is the highest amount that the insurance company will pay you when making a claim. It will be enough to meet all possible medical expenses that are increasing day by day. Use a term insurance premium calculator to ascertain the amount of premium to be paid for the given sum assured.
- Check the network hospitals: Insurance companies join hands with particular hospitals to make sure that their policyholders have a cashless treatment. Verify that the insurer has an extensive network of hospitals, particularly those near your home for easy access during emergencies.
- Look for no claim bonus: This is a bonus from the Insurer for not having made any claim at all through the policy period. Therefore, it is usually done without paying any additional premium, increasing the sum insured at no cost.
- Read policy terms and conditions: Knowing what the policy says is key to understanding what is covered and what is not. It contains the details regarding the waiting period (the time which you need to wait before claiming) as well as the co-payment clause and other clauses in the policy.
- Consider the premium: As you pick a plan, remember to keep the premium costs manageable. Nevertheless, it should not be sacrificing the depth of the content. The policy must be cost-effective.
- Check claim settlement ratio: This ratio represents the number of claims that were paid off by the insurer compared to the total claims received. The higher proportion demonstrates the insurer’s reliability and efficiency in settling claims.
- Seek expert advice: Health insurance is often hard to understand since it has many terms and conditions. A meeting with a financial advisor or an insurance professional will help you in this regard to gain understanding and make an informed choice.
- Evaluate the insurer’s reputation: Check the insurer’s market reputation, consumer feedback, and service quality. A reputable insurance will provide a smooth claim procedure and excellent customer service.
- Review the policy periodically: Your insurance needs may change as you age and change your lifestyle. Regular evaluation and updates to your policy guarantee that your coverage is appropriate and relevant.
- Look for lifetime renewability: This feature assures that the policy may be renewed for the policyholder’s whole life, giving coverage when it is most required, such as in old age.
- Consider top-up plans: A top-up plan adds additional coverage to your existing health insurance policy. If the current sum insured is insufficient, a top-up plan might provide additional coverage at a lesser rate.
- Understand the co-payment clause: Under certain plans, the policyholder is obliged to pay a portion of the claim amount. Understanding the co-payment clause can assist you in determining your financial obligation at the time of the claim.
- Consider portability: If you are dissatisfied with the service provided by your current insurer, you can transfer to another insurer without losing any benefits received under your existing insurance. This is called portability, and it allows you to change insurers according to your needs.
In conclusion, health insurance is an important tool for protecting your health and cash. It is critical to choose the form of health insurance that best suits your needs and situation. Remember that the aim is not to pick the cheapest insurance, but rather one that provides complete coverage at a fair premium. Use a term insurance premium calculator to compare different plans.