Can you bear the cost of cancer treatment? How about heart attack and stroke? Critical illnesses like these cost a lot of money. They can wipe out finances.
Health problems arrive without warning. If you reside at a locality where people are suffering from a particular disease, say dengue, then the risk of contracting that disease is high.
Dengue treatment costs around Rs 50,000 to a Lakh depending upon the severity and the hospital. To take care of medical emergencies, you must have a health insurance policy. Do you have the right health insurance policy? Let’s find out.
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Health insurance policies do not cover all cases and treatment. Most people tend to ignore exclusions, though this might not be their fault. Pre-existing diseases are covered 2-4 years after availing the health insurance plan.
If you are expecting the pre-existing illnesses to be covered within the waiting period, this is not possible. If you have availed a health insurance policy, believing you can make a claim for alternative treatment like Homeopathy or Unani, this is a mistake. Alternative treatments may be excluded or covered only up to a particular limit. Health insurance has sub-limits on travelling expenses, consultation fees and room rent. Pay attention to these charges.
How can the health insurance need be the same for you and your friend? Your requirements are different. The policy has to match your medical requirements and not the requirements of your relatives and friends.
Compare health insurance policies before you make the purchase. Seek the assistance of trusted financial education companies like IndianMoney.com to choose the best health insurance plan. Do not be influenced by anyone when it comes to health insurance.
See Also: What Is Health Insurance?
Most people just rely on the employer-sponsored health insurance plan. This is the biggest mistake you can make. Employer-sponsored health insurance policies do not cover all family members and have a limited coverage.
These plans cover up to 2 children. It means you have to buy an individual health insurance policy if you have more than 2 children. Employers negotiate all major aspects of the group cover, including the minimum and maximum sum assured, the number of critical diseases covered and the inclusion of dependents, directly with the insurance company.
The policy lapses automatically when you quit the job. Given the shortcomings of employer-sponsored mediclaim policies, it is always desirable to purchase an individual health insurance plan.
See Also: What are Health Insurance Riders?
Premiums on health insurance differ across plans. Let’s consider two health insurance plans: Plan A costs you Rs 8,000 a year, whereas Plan B costs Rs 6,000 a year. Let’s assume you have chosen Plan B believing it to be economical. You are wrong. You have to consider other crucial aspects like sum assured, pre-existing disease coverage, the sub-limits on room rent, travelling expenses, consultation charges and so on. Just for the sake of saving a few rupees, you cannot compromise on major benefits of health insurance plans.
See Also: Health Insurance Benefits
Co-pay is a key feature in health insurance. If you understand the concept of co-pay, you will know how much money you have to pay from your pocket in case of medical emergencies.
If you have availed a health insurance plan for Rs 4 Lakh with 20% co-payment clause, you have to pay 20% of the total medical expenses. If the hospitalization bill is Rs 80,000, you have to pay Rs 16,000 (20% of Rs 80,000). Senior citizens get health insurance with the co-pay clause.
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