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Limitations in Health Insurance Policy

IndianMoney.com Research Team | Posted On Tuesday, August 27,2019, 05:45 PM

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Limitations in Health Insurance Policy

 

 

What is health insurance? It is an insurance plan which covers hospitalization expenses of a policyholder. Why is it required? Health insurance is necessary as health care expenses are soaring rapidly, especially in metro cities like Kolkata, Delhi, Mumbai and Chennai.

Medical inflation is rising. Health insurance gives policyholders peace of mind. It also offers tax benefits. Just like any other product, even health insurance has certain limitations. What are they? Let’s discuss.

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Limitations in Health Insurance

Demerits of Individual Health Insurance

An individual health insurance policy covers not just the insured, but also the dependents. Individuals with health risks must have individual health insurance plans. They may have to pay higher premiums.

You may have to undergo medical tests before availing health insurance. Pre-existing conditions normally change the cover and premium offered. Alternative treatments are not covered. Health Insurance Plans do not cover treatment related to drugs and alcohol intoxication.

See Also: Types of Health Insurance Plans in India

Demerits of Family Floater Plans

Family floater health insurance plans cover the family of the policyholder. Ravi had availed a family floater health insurance plan with sum assured of Rs 3 Lakh to cover 5 family members. The entire family stands to get the policy benefit. Just like individual health insurance plans, even family floater policies have certain demerits, which include:

  • A few family floater health plans have an age limit of 60 years.
  • They may or may not provide the required cover to a family. In case of individual health insurance plans, the sum assured can be easily determined. This is not the case with family health insurance.
  • The age of the eldest family member decides the premium of family floater health insurance plan.
  • Not all family floater health insurance policies are flexible. For example, some policies allow policyholders to include their parents, while others do not.

See Also: Family Health Insurance Plan

Demerits of Group Health Insurance

A group health insurance policy is usually offered by modern-day employers. Employees can make use of group health insurance policies to protect their health and the health of their dependents. Demerits include:

  • Employees have no control over the cover. They have to accept the cover offered by their employers.
  • When an employee is terminated or switches the job, he loses cover.
  • How many children can you include under a group health insurance policy? Normally, it is 2. What if you have 3 children? You have to buy a separate health insurance plan.

How to Choose the Best Health Insurance Plan?

If you are single, an individual health insurance plan would suffice. If you are married and have kids, a family floater policy can protect the health of your dependents. If you have dependent parents, go for senior citizen health insurance policies, if they are above the age of 60 years. Understand your requirements first and shop around for the best health insurance policy.

See Also: History of Health Insurance in India

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