Times have been changing fast in every sector of life and the economy and healthcare are not exceptions. The medical costs are constantly on the rise, and so are various diseases and illnesses. All of this stresses the importance of investing in a health insurance policy that will benefit the individual and his family. A good percentage of millennials are aware of the benefits of good health and adequate medical cover, but a large percentage still looks at health insurance as a tax saving instrument.
Health insurance policies are a boon in today’s time. There could be a sudden illness or accident, and insurance may just save your life savings from disappearing. Medication and hospitalization can have huge costs. With better treatment, the cost increases and this is where a health insurance policy plays a savior.
Here are some tips that will help you select the perfect health insurance policy:
1. Indemnity or Benefit? Choose wisely.
There are two kinds of health insurance policies-indemnity and benefit. While indemnity policies such as individual and family floater pay hospital bills, benefit policies such as critical illness pay a lump sum if you are diagnosed with a disease that you are covered for. Your first policy should be a basic indemnity plan that covers hospitalization. These policies reimburse room’s rent, doctor’s fee, and other hospitalization expenses. After this, you should look at specific plans such as critical illness and disease-specific covers. If there is a need, additional covers such as international treatment, maternity, and critical illness should be considered.
2. High-risk coverage.
These days medical costs are increasing, year on year. A simple heart surgery can cost you over Rs. 5 Lakhs. Depending on your needs, you should consider taking a high-risk coverage insurance plan that offers maximum coverage. As your responsibilities grow you may need to increase your sum insured. Ask your insurer as to what extent it can be done.
3. Family Floater Health Insurance Plans.
Individual plans are good for single individuals, however, if you have a family, consider taking a family floater health insurance plan. These policies come with lower premiums but cover your entire family.
4. Picking the right sum insured.
Consider taking the right sum insured based on your age and marital status. If you are young, there are fewer chances that you will get ill, however, when you are older or you have crossed 40, there are choices that you are prone to diseases like diabetes, heart diseases etc. Also, when you get married, the sum insured should be increased with consideration to your spouse’s health.
5. Maximum age renewal.
Nowadays it is mandatory for health insurers to offer policies with lifetime renewal facility. You may not need health insurance when you are young. However, when you get older, you may need health insurance Choose a health insurance plan which can renew your policy to the maximum age of 70 or 75 years of age.
6. Claim settlement ratio.
Claim settlement ratio is the ratio of claims settled over total claims received. You should consider health insurance from an insurance company that has a high claim settlement ratio. This would help you and your family to avoid any rejection of your claims.
7. Insurance Premium.
The premium will vary according to the benefits chosen by you. Higher the number of benefits, higher the premium will be. Therefore, ideally, you should compare premiums for the same kind of advantages, and select the plan that not only suits your pocket but is also future ready with sufficient benefits.
Health insurance policies come in different packages and offer various features like any other product you can buy in the market. Purchasing a policy that is suitable for you, in the long run, is important, as you may not encounter your first claim for many years to come. Health Insurance is an effective way for individuals to plan for uncertain medical expenses/treatment. Health insurance has many benefits for the individual and the family, provided you are careful in choosing the best mediclaim policy.