Insurance | February 27, 2020
medical inflation is skyrocketing, and it’s growing at a higher pace than food
inflation. There is a famous proverb, ‘Health is wealth’. Medical emergencies
can easily wipe away your entire money at once. Since most of us cannot afford
one-time expenses on health emergencies, it is better to take the health
insurance cover. They usually charge a premium periodically and helps us with a
lump sum amount when the need arises. So, while buying a health policy, which
are the things you should keep in mind? Let’s explore 5 crucial things to keep
in mind when you plan to buy a health insurance policy.
Find the type of health insurance suited to your needs
Health insurance plans are of various types. There are
individual plans which are suitable for a single person. I usually advise aged
people to go for an individual policy because they are at a higher chance of
making a claim.
There are family floater plans in health insurance that covers
the whole family. The family means self, spouse, and unmarried children. Some
policies also include dependent parents in a family. Family floater policies
are suitable for people who have more than one dependent, and there is a low
chance of all making health insurance claim together, once or multiple times in
a policy year.
Find the need for critical illness cover and Add-ons
Do you need critical illness cover? It covers critical diseases
that can cost you a huge amount. If your insurance doesn’t include critical
illnesses, then you may want to consider it. You can also take a look at
add-ons available along with the insurance plan. This is important in the case
of older people as their medical needs are different. Also, if you have a
family history of critical illness, then you may go for it.
Know the claim process
The claim process is the most crucial part of any insurance.
This is the time you reap the advantage of taking insurance and paying your
premium without fail, year after year. The claim process should be simple and
clear. Ask the insurance company specifically about the claim process and go
through it carefully. The last thing you want is to run helter-skelter for
getting your rightful claim. Additionally, look at the claim settlement ratio,
which explains the percentage of claims settled by the insurance company, the amount
claimed, and the percentage of amount allowed; it can help you to opt for the
best health insurance company.
Check out the number of hospitals in the network
Every insurance company empanels with the hospitals for the
treatment of its customers. It is better to get insurance from a company that
has a broader network of hospitals. At a network hospital, you can get cashless
treatment; however, if the hospital is not in the list of the insurance
provider, then you need to get the claim amount through reimbursement. A wider
network makes your treatment easier and saves valuable time in case of
Find the coverage that you need
Health insurance should cover you adequately. The coverage
amount depends on your lifestyle, past medical history, and habits. You should
also look at the premium needed for the specific cover size. This may vary
among health insurers. While it is tempting to compare the premium and choose
the cheapest, this may not be a good strategy. Look for the claim settlement
process, time, number of network hospitals, and capping (if any) on the
treatment of specific ailments as well.
The most important thing to keep in mind is that it is better to
take health insurance because at later age there are higher chances of
suffering from a disease like diabetes, BP, hypertension, etc., so you may need
to wait for a longer period to get such ailments (pre-existing disease)
covered. At an early age, there is no need to go for a medical check-up for
buying a health cover.
Note: Article originally appeared in Businessfortnight.com. Link to the source article is as mentioned below: