Given the rising healthcare costs and increasing health problems, health insurance is no longer just an option but a necessity.
Health Insurance: Health insurance has become extremely crucial in today's lifestyle. It not only provides protection against medical expenses but also offers peace of mind. If you are considering purchasing health insurance, it is essential to pay attention to some important aspects. Let's understand what factors to consider when buying health insurance.
Choosing the Sum Insured
The most important aspect of health insurance is choosing the sum insured. This amount should be sufficient to cover your and your family's potential medical expenses. When determining the sum insured, assess your age, lifestyle, family medical history, and potential medical costs.
Waiting Period for Pre-existing Diseases
Most health insurance policies have a waiting period for pre-existing diseases. This period is typically 2 to 4 years. If you claim for a pre-existing illness during this period, it will not be covered. Therefore, it is essential to obtain information about this waiting period when purchasing a policy.
Policy Exclusions
Every insurance policy has some exclusions, i.e., certain conditions that are not covered. For example, some policies do not cover pregnancy, cosmetic surgery, or mental health treatments. Carefully read and understand these exclusions in the policy document.
No Claim Bonus
If you do not make any claims in a policy year, insurance companies increase your sum insured the following year. This is called a no-claim bonus. This bonus can typically range from 5% to 100%, depending on the policy and the insurance company. The no-claim bonus increases your sum insured, providing greater protection against future medical expenses.
Cashless Hospital Network
Health insurance companies partner with various hospitals where you can receive cashless treatment. This means you do not need to make an upfront payment upon hospital admission; the insurance company pays the hospital directly. When purchasing a policy, ensure that your nearby and preferred hospitals are included in the insurance company's network.
Policy Terms and Sub-limits
Some policies have sub-limits for specific treatments, such as room rent, ICU charges, or a limited amount for certain specific treatments. It is essential to be aware of these sub-limits to avoid problems in unexpected situations in the future.
Insurance Company's Claim Settlement Ratio
The insurance company's claim settlement ratio indicates the percentage of claims the company settles. Companies with a high claim settlement ratio are considered more reliable. Obtain information about this ratio when purchasing a policy.
Policy Renewal Process
The health insurance policy renewal process should be simple and straightforward. Some insurance companies require a medical check-up at the time of policy renewal, especially for senior citizens. Understand the renewal terms and process when purchasing a policy.
Additional Benefits and Riders
Some insurance policies offer additional benefits or riders, such as Critical Illness Cover, Maternity Benefits, or Personal Accident Cover. Obtain information about these additional benefits and ensure they are suitable for your needs.
Policy Term
Health insurance policies are available for various durations, such as 1 year, 2 years, or 3 years. Purchasing a longer-term policy can offer premium discounts and reduce renewal concerns.
