Things to be Aware While Buying a Health Insurance Policy

With changing times, insurance companies have become more customer friendly by ensuring that insurance agents are available across the country and a 24/7 customer care available throughout the year. Also, internet has proved to be a game changer as you can get information about all policies offered by various insurance service providers.

Since insuring your health has become a simplistic task, sometimes, it can also lead to last minute surprises. However, there are a few checklists which if you are aware of will help you get an insurance policy which will suit you as well as your family's needs.

List of Network Hospitals

Network hospitals are the list of hospitals wherein the policy holder can claim cashless facility and get treated at the hospital without paying anything from his pocket. Network hospitals are most preferred for planned surgeries/treatment and medical emergencies. An insurance service provider having extensive list of network hospitals is an advantage to the policy holder as he can avail the best medical treatment possible in case of medical needs.

Sum Insured of the Health Insurance Policy

Sum insured is the maximum amount of claim which can be made during a year by the insurance policy holder in case of hospitalization. Any claim above the sum insured amount will have to be borne by the policy holder. For instance, you have a sum insured for Rs.1 lac, you got hospitalized during the year and the treatment costed Rs.1.50 Lacs. In such case, the insurance service provider will entertain claims up to Rs. 1 lac and the balance Rs.50,000/- will be borne by you.

Sum insured plays a pivotal role not only in determining the premium paid by you but also, an adequate sum insured gives you a peace of mind in case of medical emergencies. While taking a policy, the inflating medical costs and the number of members to be insured should be taken into account for the purpose of arriving at sum insured.

Room rent limits

Hospitals have different categories of room like Single room, double sharing etc. wherein the room rent per day varies. Generally, the capping on room rent is 1% of the sum insured. Suppose, your sum insured is Rs.4 lacs, then the limit of room rent will be Rs.4,000/-. This means that if the room rent is above than this, not only the room rent but all the expenses relating to hospitalization will be borne by the policy holder proportionately.

Claim Process of the Insurance service provider

Claim process should be simple, convenient and hassle free. It should not be tedious or a process wherein too many approvals are required to get the amount reimbursed. Also, customer care assistance particularly for the claim process and intimation regarding the processing of claim via SMS or email ensures that the process is consumer friendly.

Fine prints of the policy

Once the policy is issued and delivered to the policy holder, he should read the fine prints i.e. the terms and conditions of the policy to avoid last minute surprises.For example few ailments like ovarian disease, diabetes, ENT disorders, hypertension, osteoporosis, hernia etc. might have a waiting period clause in the policy document.

Top ups provided by the insurance service provider

A top up is an additional cover apart from the existing sum insured.Keeping in mind the ever increasing treatment cost, various insurance companies have come up with top up plans which support your medical expenses in case your medical expenses cross the sum insured limit.

No claim bonus

No claim bonus is a discount provided by the insurance company for not claiming or availing benefits under the medical insurance. This bonus is provided at the time of renewal of policy in form of discount in premium. Ideally, the health insurance policy should be renewed within 30 days of the due date to enjoy the benefits of no claim bonus.

Health insurance policy available Online

Various websites provide information regarding the plans provided by the insurance service providers. These websites help you compare the plans and suggest you the one which best fits your pocket. They also, offer discounts and other add on benefits which can help you take a desired plan.

Being well informed about the benefits provided by health insurance companies will help you insure your health needs in the long term.

Source: Things to be Aware While Buying a Health Insurance Policy

What are the things to avoid while buying health insurance policy?

Health is wealth is the most commonly used proverb when it comes to health. It holds true in entirety as you won’t be able to enjoy your desires if you don’t have health on your side. Sedentary lifestyles have made individuals more prone to health related issues. Buying a health insurance is a more of a necessity than a luxury. Keeping in mind the rising medical costs and inflation rate, an unwarranted medical emergency might create a big hole in your pocket.

You can buy a health insurance from various modes which are:

• Insurance Agent
• Directly from the Insurance service provider or
• Online

However, there are few things which can help to avoid making these mistakes while buying a health insurance policy.

• Relying only on the group insurance provided by the employer

Many a times, professionals do notbuya separate health insurance policy as they are already covered under the corporate plan. But despite of being covered by a group insurance policy, there can be a time lag in between job switch or unwarranted situations like unemployment wherein he and his family can be uninsured.

• Insuring your health too late

Buying a health insurance plan at an early age has its own sets of benefits. In the early ages, you will be less prone to diseases and there will be no pre-existing medical ailments, which will result in lower premiums. Availing a policy late in life might require medical check-ups and also, a rise in premium.

• Co-payments and Deductibles

In co-payment, the policy holder accepts to pay a fixed percentage of the hospital bill from his pockets. In return, the insurance service provider takes lesser premium. Co-payment can be a compulsory clause in the senior citizen health insurance plan.

Deductibles are like co-payments, the only difference being is in deductibles, a fixed amount is specified in the policy document instead of a percentage.

Co-payment as well as deductibles is cost-sharing clause in health insurance policy. A person buying a health insurance should avoid such clauses.

• Hiding Information regarding your health in the application form

Providing correct and accurate information regarding the policy holder’s and his family member’s health is vital to the insurance company. It provides a peace of mind to the person buying insurance and helps the insurance company to calculate the appropriate premium. While applying for a health insurance, avoid filling inaccurate or false information which might lead to confusion and non-entertainment of claims.

• Comparison of policies on the basis of premium

Generally, people compare two products or services on the basis of price. But in case of health insurance, a low premium by the insurance service provider might mean exclusion of certain disease. Exclusion of diseases means there could be few ailments which you or family can be impacted due to family history or lifestyle. Such health policy might not serve the purpose for which you have bought them and in case of illness, you might end up paying the hospitalization expenses from your pockets.

• Only purpose to buy policy is to save tax

Premium paid on health insurance is liable for exemption under section 80D of the Income tax act. The exemption limit is:

• 25,000/- for self, spouse and dependent children
• 30,000/- for senior citizens

Many a times, individuals end up buying health policy keeping in mind the tax exemption and do not pay much attention to the ailments covered and benefits provided by the policy.

• Not looking at the policy after it is received

Once the policy is issued and delivered, you should check your personal details like name of the policy holder, family members covered the health I-card of each member. In case of any discrepancies, contact the respective agent or the insurance company and ask them to make the necessary changes. This is because when a medical emergency situation arises, you don’t want to be wasting time by coordinating with the insurance service provider which ends up delaying the approval process.

• Not reading the policy conditions

It is very important to be aware about the policy terms and conditions which ensure you take the right decision while buying a health policy and are not left disappointed.

• Not knowing other options available

Various policy options are available at the click of a mouse. There are websites which help you compare the policies offered by different insurance companies and help you make the right choice.

So, if you are planning to buy an insurance plan for you and your family, avoiding the above aspects will definitely help you in taking the right decision.

Source:  What are the things to avoid while buying health insurance policy?

POST NAVIGATION

Is critical illness insurance a good idea?

Rajesh was a healthy 30-year-old lawyer. However, since there was a history of cancer in his family, he was very cautious while buying insurance. He had seen how his father’s treatment had left the family almost penniless and so he wanted to ensure the same thing didn’t happen if he was diagnosed with the illness. So he bought  illness insurance plan and secured his finances as well his family’s well being. 

A critical health plan is a very good type of insurance that provides financial assistance if the policyholder is diagnosed with a crucial illness. Take a look at this article to understand how a illness plan works and why you must opt for it.

What is a critical illness plan?                        

A critical illness plan is a kind of insurance where the policyholder is paid a lump sum amount of money if he or she is diagnosed with a crucial illness. The insurer provides a list of illnesses classified as illnesses when the policy is being bought. If the policyholder contracts any of the diseases during the policy period, he or she receives the monetary benefit and is free to use the sum in any way he or she wishes.

crucial ill health insurance is available as standalone plans as well riders along with health insurance plans and life insurance plans.

Benefits:

Let us now take a quick look at the benefits of a illness plan.

·         Provides financial support: This is the biggest advantage of buying a critical ill health plan. Getting diagnosed with a major illness like a stroke or a heart attack may be distressing, but dealing with the finances at such a time becomes all the more difficult. Healthcare costs are very high these days and without proper insurance, you can’t even think about getting treated at a good medical facility. And since the treatment of the crucial ill health cost a lot of money, a regular health plan is never enough. The sum assured from a crucial illness plan proves to be very handy at such a time.

·         Income substitute: As mentioned, the insurance provider doesn’t check how you are spending the sum assured you received from the critical health plan. So instead of just paying the hospital bills, you can also use the money to act as an income substitute if your illness leaves you temporarily or permanently unemployed.

·         Clear dues: You can use the money from your health plan to clear dues such as home loans, credit card bills, etc so that if something were to happen to you in the aftermath of the diagnosis, your family members would not be harassed by the lenders. This is yet another helpful advantage of a health plan.

·         Continue with your savings: If you have a health plan in place, you don't have to dip into your savings or prematurely break any investments to pay your medical bills. You can safely continue with your savings and deal with the medical bills with the sum assured you receive from the critical illness policy.

Points to remember before buying a critical illness plan

There are a few important points that you must remember before you buy a health insurance plan. They are:

1.     There is a waiting period associated with the illness plans. Different insurers have different specifications, but you have to wait for about three months from the time you buy the policy to make a claim. You cannot get the benefit if you already have the illness when you buy the plan.

2.     There is a difference between a standalone health plan and a plan rider. In a standalone critical illness policy, if a claim is made, the sum assured is paid out and the policy is terminated. In the case of a rider, the critical illness cover is paid but the principal health or life insurance policy continues to remain functional.

The bottom line:

It indeed is a very good idea to go for a critical health plan. With such a plan you are assured of a solid financial backup when you need it the most. So what are you waiting for? Buy a critical health plan today if you haven’t done so already and secure your health as well as the financial well being of your family.

Source:  Is critical illness insurance a good idea?