Health / Medical Insurance

 

Health Insurance is a type of insurance that offers coverage to the policy holder for medical expenses in case of a health emergency. In India, provision of health care services varies state-wise. Public health services are prominent in most of the states, but due to inadequate resources and management, major population opts for private health services. Generally, insurance companies have tie-ups with the leading hospitals to provide cashless treatment to the insured. In case the insurance company has no tie-ups with the hospital, they reimburse the cost of expenses incurred by the insured.

Why is buying health insurance necessary?

Buying a health insurance policy for yourself and your family is important because medical care is expensive, especially in the private sector. Hospitalization can burn a hole in your pocket and derail your finances. Few other reasons to by health insurances are:

• It protects from unexpected and emergency medical expenses and helps manage risks.
• Security against the rising cost of medical treatments.
• Incidence of lifestyle illnesses has increased.
• Buying it early means better financial planning and at best premium.
• Because it covers much more than just hospitalization
• Cashless treatments, pre and post hospitalization coverage.
• Tax benefits

Points to consider while selecting a Right Health Insurance Policy

• Every family member should be covered with health insurance either individual or family floater plans.
• Amount covered should be in accordance with the city you are staying in and medical expenses covering medical treatment inflations for few years.
• Consider buying separate plans for parents if they are above 50 years of age and have undergone any major surgeries, will reduce premium cost.
• Claim settlement ratio and Amount settlement ratio of the insuring company should be high
• Read the insurance documents carefully for any caps and sub limits of any of the category or expenses like room rent, ICU charges etc.
• Note the number of pre and post hospitalization days covered, medicine charges and day care expenses.
• A good insurance also covers the amount paid for organ donors (in case of donation).
• Insurance should also cover the transportation cost like Ambulance charges.
• Check for the waiting period for any preexisting diseases or any specific diseases.
• Check for No claim bonus from the insurer and recharge option (if available) and co-pay percentage if applicable
• The insurance company should have good number of hospitals in their Network of hospitals, especially to provide cashless treatments.
• Keep an eye on the exclusions mentioned in the policy documents, exclusion on specific type of diseases or specific hospitals.
• Knowing the company history of the insurer helps in understanding the working and settlement history.
• Few medical insurances also provide free medical checkups at least once a year.
• Buying a health insurance as early as possible will help reduce your premium amount.