Even before one starts investing in one’s goals, getting adequate health insurance coverage for self and family helps. Undeniably, health insurance is one of the most essential insurance policies to have considering the spike in the occurrence of health problems at an early age, in the current climate. Further, the astronomical medical treatment costs place clear stress on the necessity of having a health insurance policy. Therefore, it is very important to stay prepared for the financial consequences of a health problem. You cannot plan and get sick, but you can certainly stay financially prepared for the worst.
There are a variety of health plans available in India, from individual plans to family floater and senior citizen health insurance. So, you need to assess your requirements first and then purchase a health plan.
Why is health insurance important?
- Added Value to Health : We can look after our health to the best of our ability. But having extra coverage of protection is always beneficial. When this protection is provided in terms of finances, health literally becomes wealth. It becomes an added motivation to value our health in the same manner as wealth.
- Access to Improved Healthcare : The quality of healthcare available improves day after day. However, a sound financial investment is required to access these healthcare facilities. This investment can be made in the form of health insurance. This leaves no stone unturned in ensuring access to the most advanced standard of healthcare available today.
- Coping with Life’s fluctuation : We live in an extremely fast-paced life. This results in an unhealthy lifestyle. In the event of medical or related emergencies, separate financial funding for such circumstances becomes the foremost requirement. This helps in dealing with life’s uncertainties in a better manner.
- Additional benefits of health insurance: Tax-SavingHealth insurance is exempted from tax consideration as per law. Therefore, it can become a beneficial alternative for earning deductions on the total income tax. Choosing health insurance for the whole family can be extremely valuable in this regard.
- Coverage for Alternative Medicine: Every individual opts for a different line of treatment. Health insurance available today can offer coverage for alternative treatment (Ayurveda, naturopathy, homoeopathy). This is applicable to institutes registered or recognized by the Government.
- Recovery compensation ; In the case of medical admission, a supplementary financial investment is required. These costs can be covered by selecting health insurance as a means to secure one’s well-being. An extended admission period of up to 10 to 15 days can be covered in such cases.
Which plan suits you best?
- Room Rent : Most important part of the hospital bill is Room Rent as 80% of the hospitalisation and service is co-related and billed into room rent like a Doctor visit, RMO visit, nursing fees, daily diagnostic and medicine, etc. There should be no room rent sub limt like 1% or 2%
- Coverage of Plan : Added benefits are extremely important for selecting a proper health insurance plan. Additionally, one should choose a plan that contains benefits as per requirement. Too many additional benefits can inflate the cost of a policy.
- Limits on Coverage: This is the fine print of the health insurance policy. This is one of the key aspects of finding the right health insurance. A ceiling on basic coverage facilities (ambulance, pharmaceuticals, etc.) proves tricky at the time of medical admission. Therefore, a plan with adequate basic coverage should be selected.
- Period of Wait : Certain ailments can be covered only after a specific cooling period; such as bone replacement. For senior citizens, the health insurance plan selected should have the least possible waiting period. Alternatively, plans covering specific ailments can be covered to eliminate the need for a cooling period.
- The Age Limit of Insured : Certain health insurance policies have an age limit for coverage. Therefore, the appropriate plan should be chosen taking into account age considerations.
- Premium Payment :The mode of payment, frequency of policy premium, as well as rate of interest should be collated. The right health insurance plan should be selected only after considering the aspects mentioned above.
- Co-payment : Normally, the Co-Pay clause is applicable for the Senior Citizen health insurance plans and is usually 10%-15% and in some cases, it goes to 50%. What it implies is that if your medical bill is Rs 1L then the insurance provider will pay 85k and you will pay 15k. Usually, the policies with low premiums include the co-pay option. Preferably, you should not opt for a plan with a co-payment clause. Reason being, co-pay can be a substantial amount in case of a high-value claim.
- Waiting Period on specified ailments: This clause is different from the pre-existing disease or 30 days waiting period. The health insurance plan excludes specified ailments like ENT, Diabetes, hernia, hypertension etc for a period of initial 2 years from the date of issue of policy. The list of ailments may vary from company to company. The reason being, to avoid fraudulent claims.
- Claim settlement ratio: The claim settlement ratio is the number of claims settled by the insurance provider over the total received claims. Always choose an insurer that has a high claim settlement ratio.
Use these tips to maximize your benefits when you shop for health insurance. It is an investment that you are making to safeguard yourself from the financial burden of high healthcare costs – make sure you make the most of it. Stay Healthy Stay Happy 🙂
