A lot of individuals in India do not realize the importance of health insurance. In fact, a lot of them feel paying the premiums as an additional expenditure in their already existing list of expenses. But, in reality, health insurance can prove to be highly beneficial when it comes to medical treatments.
Health Insurance is a necessity Rather than a Luxury
Although it is a necessity for every individual, urban individuals need it more. It is because the busy schedules, stress, rising pollution levels and lack of physical work makes them prone to diseases. And the treatment of some diseases can cost an individual a fortune. Therefore, having a health insurance is as important as having a stable source of income.
As several policies offer free health checkups, the individuals get prepared as diseases can be detected at the early stages. A lot of policies also include the newborn children after a certain number of days, which means that the family planning can be done without any burden.
Factors to Consider Before Buying a Policy
For a general insurance, an individual usually gets advice to analyze the premium, sum assured, benefits and add-ons, etc. But, if we talk about the health insurance, the policies are a bit complicated. These tips will help you choose a policy that will not create trouble during emergencies.
Every insurer has a unique set of hospitals that are covered under the policy. The hospitals from this network offer “cashless treatments” to the insured individual or his/her family members if they are part of the plan.
Type of Cases are Covered
Some policies include terminal illness while others don’t. Similarly, some plans exclude accidental cases. You need to read the terms and conditions or call the customer support representative to get a clearer picture.
Room Rent Capping
Most policies have a concept of room rent capping under which a policyholder can claim the expenses of room rent up to a certain limit. The other expenses are also the part of room rent capping, which decreases the amount of claim.
It refers to a plan where a policyholder has to pay a particular amount of treatment costs. This amount varies from policy to policy. Opt for a plan that comes with least co-pay amount.
This is a factor that is not part of any document or terms & conditions. You have to analyze the rate of inflation on your own. This is because a particular sum may look attractive in the present day scenario but will look quite small in future due to price rise.
Family Floater or Individual Policy
Family floaters are usually preferred if an individual is a sole earner in a family. These policies offer all the necessary benefits with a reasonable premium. If someone in the family is suffering from a disease, going for an individual policy is a good option, as chances of getting him/her hospitalized will be frequent.
Common Benefits and Features of Health Insurance Policies
In order to ease up the lives of the policyholders, the health insurance policies offer various benefits and features through their policies.
- No claim bonus is a very popular feature of health policies under which the policyholders receive a bonus if they don’t make a claim during a specific year.
- Cashless hospitalization is another feature through which the policyholders don’t have to pay the bills of a treatment through their own pocket. In this feature, the bills are paid directly by an insurer or through a middleman to the hospital.
- The individuals also enjoy tax deductions as per the Section 80D of Income Tax Act. The maximum limit of deductions can range from Rs. 25000 to Rs. 60000 on the basis of age of insurer or his/her family member.
- A lot of policies also offer claims for domiciliary hospitalization, which means cover for treatment and care of a patient at home if recommended by the doctor. The insurers usually offer this facility if the treatment exceeds a certain number of days for an injury or illness.
Various Policies also Offer Exclusive Benefits, which Include:
- 13 relationships can be covered under single policy through Max Bupa Heartbeat
- The policyholders can enjoy comprehensive solution during non-medical and medical emergencies through multiple plans offered by ICICI Lombard.
- Companies like Royal Sundaram and ICICI Lombard offer a health check up on an annual or bi-annual basis.
- Star Health Senior Citizen Red Carpet does not require the insured individuals to go through a medical screening.
Top-up Policies: A wise Option
No doubt having a health insurance is important, as it keeps you and your family members shielded during medical emergencies. But, what if the treatment costs exceed the sum assured? This is where the top-up policies appear as a savior. These policies offer cover when the limit of already existing health insurance plan has been crossed.
These policies prove to be quite beneficial if purchased along with the health insurance offered by the employer. In these cases, the policyholders don’t have to worry about the limited sum assured or exclusions associated with the corporate health insurance policies. Even if someone has already purchased an insurance plan, a top up is a good option to enhance coverage, as it will make sure that severe medical emergencies are handled smoothly.
The features, benefits and exclusions introduced by the insurance service provider may cause confusion among those who plan to buy a new policy or renew an existing one. Online portals like ComparePolicy.com appear as a support in this scenario to help individuals choose the policy that offers maximum benefits without burning a hole in the pocket.