—
Thanks to healthcare inflation, medical expenses can burn a hole in your pocket. While everybody needs healthcare facilities, not everyone can afford it. At times, unexpected medical emergencies can affect your financial planning adversely. In no time, a health emergency can transform into a financial emergency. This is where health insurance comes to the rescue. It adds an extra layer of security to your finances and helps you accomplish your financial goals.
Before you zero down on an insurance plan, analyze your insurance needs and make sure you compare health insurance plans online. It will help you in getting maximum insurance benefits and making a well-informed decision. Some people buy health insurance with the sole-objective of claiming tax deductions. Though they get all the eligible tax benefits, the insurance coverage doesn’t suffice their insurance needs.
If you want to have the much-needed peace of mind and a hassle-free insurance buying experience, factor in the points mentioned below.
1. Corporate Health Insurance Isn’t Enough
Corporate health insurance offers basic health coverage to the employees. However, corporate health insurance ceases to exist when you leave the organization. In order to enjoy comprehensive insurance benefits, insurance experts recommend opting for a family health insurance plan (if one has a family) or an individual health insurance plan (for self).
2. Opt for Right Sum Assured
A right sum assured makes an insurance plan worth it. At the time of deciding a sum assured, you must consider your current health care expenses. If you reside in a small city, then your sum assured should range from Rs. 3 Lakh to 5 lakh; if you reside in a metro city, then your sum assured should range from Rs. 5 lakh to 10 Lakh. The range can be higher based on your insurance needs but it shouldn’t be lowered down just to save some premium.
3. Early Bird Catches the Worm
The key to leveraging health insurance in the best way is to compare and buy health insurance at a young age. When you are young, your health is at its peak, and you are less inclined to have a pre-existing illness. At a young age, the health insurance premium is nominal and the offered insurance benefits are more.
4. Renewability Options Matter
When you move towards the golden years of your life, it is then that you need quality healthcare the most. Majorly, it is due to aging since old age exposes you to the risk of contracting various illnesses. A health insurance plan that comes with lifetime renewability is the perfect option.
5. No Claim Loading, Please
Claim loading means that an extra amount is added to the insurance premium. In case your plan comes with claim loading and you contract a critical illness that requires a long time to be treated, then your premium will keep on increasing. At one point, the premium might become unaffordable.
6. Auto-Refill? Yes Please!
To be on the safe side, buy a health plan that comes with an option of auto-restoration of the sum assured. This way, you can continue to enjoy the cover even if the sum gets exhausted. It will help you to avail the maximum insurance benefits.
7. Read the Fine Print of Your Insurance Plan
Before buying health insurance, carefully go through the fine print of your insurance plan. Pay attention to all inclusions and exclusions so that you don’t end up making any assumptions. It will also bust any insurance myths in your mind (if any). It will help you to make informed insurance decisions and will give you clarity about what to expect at the time of claim.
Reading the fine print of your plan reduces the chances of your claim getting rejected.
8. Be Honest
Honesty is the best policy, they say. At the time of filling out your application form, never hide information or lie about your pre-existing medical conditions (if any). Be honest, it might cost you a bit higher but at least you will get relevant insurance coverage. Most health insurers conduct a medical screening of the applicants. If you lie about your pre-existing medical condition, your insurance application might get rejected.
9. Waiting Period Should be Minimum
Generally, all health insurance policies come with a waiting period for pre-existing illnesses. During this waiting period, insurance coverage isn’t provided. Exact waiting period varies from insurer to insurer. You should consider insurance plans that come with a shorter waiting period.
10. Go for Minimal or No Sub-Limit
Sub-limit is specified by many insurance providers in their policies. For anything above the specified limit, you will have to bear the medical bill from your own pockets. Go for a plan that comes with no or minimal sub-limit as sub-limits will put a cap on room expenses, doctors, diagnostics fees etc.
Parting Words
Buying health insurance is an important financial decision for anybody. In order to have a smooth claim process, keep a few things in mind at the time of buying health insurance. Jot down the preferred/best hospitals in your vicinity and compare various plans which have your preferred hospitals in their network list.
In case of an emergency, you have no choice but rush to a hospital in your vicinity. If a plan provides cashless hospitalization, you are more likely to have a smooth claim settlement experience. The reason we did not cover these factors in the points mentioned above is that a majority of the insurance providers cover a wide range of hospitals, and they provide cashless hospitalization at their network listed hospitals.
Don’t forget the golden rule: compare health insurance plans in order to have the best insurance coverage.
—
This content is brought to you by Wendy Dessler.
Photo: Getty Images