Health problems may arise anytime. If you fall sick or get seriously injured, hospitalization can blow away your savings. Not all people can afford costly hospitalization.
Getting adequate health cover is the only solution in today’s world, where healthcare expenses are steadily rising. While buying a new health insurance policy or renewing an existing one, do not forget to get the best health insurance policy.
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The demand for health insurance is growing with rising medical costs. Health Insurance covers the surgical and medical expenses of a policyholder. For example, a few health insurance policies cover up to 30 critical illnesses and up to 80 surgical procedures. Irrespective of the actual medical costs, these plans disburse payments towards illness/surgery expenses.
See Also: Health Insurance Benefits
Health insurance policies are of two types:
1) Indemnity plans
2) Defined-benefit plans.
Indemnity health policies, also known as traditional health plans, cover hospitalization costs up to the sum assured. They include unit-linked health plans, mediclaim plans, family floater coverage, senior citizen plans and individual plans.
On the contrary, definite-benefit health insurance policies offer a lump sum amount on diagnosis of the disease. Definite-benefit plans are classified as critical illness plans, hospitalization cash benefit plans and personal accident plans. Critical illness policies cover cancer, stroke, heart attack, kidney failure, major organ transplant and other serious conditions.
See Also: 4 Insurance Plans You Must Have
1. Understand Your Family Requirements: The health insurance plan you avail, must meet family requirements. For example, a person with a family of 7 members including spouse, children and parents, must understand health insurance needs of the entire family. If you want to include your elderly parents under a family floater health insurance plan, the age of the eldest family member is taken into account to decide the health insurance premium. You need a separate health insurance plan for yourself + spouse + kids. Avail a separate senior citizen health insurance plan for elderly parents.
2. Sum Assured: The sum assured is the maximum amount paid by an insurance company for hospitalization. If the sum assured for a policy is Rs 2 Lakh, you can claim this amount on hospitalization. If your medical bill is Rs 3 Lakhs, it means the remaining Rs 1 Lakh has to be paid out of pocket. It is always good to have a higher sum assured in health insurance plan. But, the premiums rise with higher sum assured. Start with a reasonable cover and increase it as income rises.
3. Hospital Network: Insurance companies have a tie-up with a network of hospitals, which must be checked before availing health insurance. The quality of healthcare offered by the network hospitals is equally important. If you are staying at a particular locality, make sure there’s a quality network hospital nearby.
4. Illness Coverage: Health insurance policies differ in terms of coverage. The ones which cover a good number of illnesses are preferred over the ones with a minimum number of illnesses. Get the policy details and take a closer look at the inclusions and exclusions of the health insurance policy. Check if pre-existing illnesses are covered. Choose the policy that gives extensive benefits at an affordable premium.
5. Check the Policy Tenure: When you avail yearly renewable health insurance policies, the premium is comparatively lower. When you choose a policy for a longer tenure, say 5-10 years, the premiums are higher because you have to pay the premium for the selected term. The policy tenure can be chosen according to convenience.
See Also: How to Buy Health Insurance Policy?
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