Shree
Not many people know this but health insurance plans are one of the most important investments they will make in their lives. But before you buy a policy, it is important to ask yourself if it is the right one for you.
The health insurance market in India is so huge that it is inundated with products, each promising to give you the best health insurance policy. With rising medical expenses and cost of treatment, it is necessary to have health insurance plans in your investment portfolio to protect your savings.
Even though there are many advantages of health insurance, choosing the right policy amongst so many options can be a daunting task, especially if you are doing it the first time.
In this article, we will address some important points to help you understand how to navigate the world of health insurance plans with confidence and choose the policy that suits your needs.
1. Assess your needs
You need to start by assessing your needs and expectations from the health insurance plans that you are looking to buy. Once you know what you want, it will be easier to point yourself in the right direction.
2. Plan types
There are various types of health insurance plans and the key is to choose the appropriate one for your needs. There are plans like indemnity that only pay a certain percentage of your medical bills and there are also definite plans like critical health insurance that pay a lumpsum cash amount to give you autonomy over how you plan to spend the money. Once you have identified your needs, it will be easier to choose plan type.
3. Claim settlement ratio
This is an important indicator that tells you insurance company's credibility in settling claims. A claim settlement ratio is a number that tells you how many claims an insurer settled in a year. Look for an insurance provider with CSR value in the high 90s.
4. List of network hospitals
Before you decide on health insurance plans, you must check their list of network hospitals. It is an important consideration as policyholders are eligible to apply for cashless facility if they seek treatment in one of these hospitals. Make sure your preferred medical institution is in the list of network hospitals to get quick and hassle-free access to treatment during emergency situations.
5. Check about co-payment clause
Some companies may require you to pay a portion of the medical bill before they pay the balance amount. This is known as co-payment clause. Always look for a health plan that has the lowest co-payment clause or no clause at all.
6. Plan inclusions
Don't just trust an insurer's word for it when they say they offer the best health insurance policy. Instead, do your own research and check everything that the plan does or doesn't include. Look for things like cover for accidental injuries, sub-limits on room rent, ambulance charges, daycare allowance, etc. Only choose the plan that offers you maximum benefits for the lowest premium.
7. Free medical check-up
Many insurers these days offer routine medical check-ups to their policyholders. In absence of this facility, these visits with diagnostic tests can cost you a lot of money. Health insurance plans that offer free medical check-ups will save you a lot of money in the long-run.
8. Special benefits
Look for added benefits, such as dental care, eye care, etc. But before you buy the policy for these special benefits, be sure to check the insurance company for reliability.
9. Cover for pre-existing illnesses
Don't make the rookie mistake of assuming that all health insurance plans will provide cover for pre-existing conditions. Not checking this beforehand can turn out to be a costly mistake. If you have such a pre-existing illness, make sure it is covered in the policy.
10. Waiting period
Sometimes, health insurers want you to stay invested in a policy for at least a few years before they provide coverage for certain conditions. This is known as the waiting period. It is only after this waiting period is over that you can file a claim for that condition. Choose a plan that has the lowest waiting period, especially if you have a pre-existing illness.
11. Out-of-pocket expenses
Even with a robust health plan, there can be number of out-of-pocket expenses. It is imperative to take all these costs into account before you buy a policy.
These are some of the many things you need to consider when you are looking to buy a health insurance plan. Remember to do a thorough research and read the policy document of the insurance policy before investing.
Source: https://www.policyholder.gov.in/You_and_Your_Health_Insurance_Policy_FAQs.aspx
CAclubindia
