Medical emergencies do not come with a warning sign, and one unexpected visit to the hospital can drain your savings in a matter of days. This is the harsh reality that millions of families face every year. The good news is that the right health insurance plan puts a strong financial safety net between you and those unexpected medical bills.
Have you been waiting to buy health insurance because you feel it is too complicated and unnecessary? Let us break it down for you in simple terms.
Why a Health Insurance Plan Is No Longer Optional
The cost of healthcare in India is growing at a rate of almost 14%. Even a surgery, a short stay in the ICU, or a normal hospitalization may cost lakhs of rupees. If you are uninsured, you may have to spend your hard-earned money saved for the future on medical bills.
A good health insurance policy provides security for everything you have worked so hard for. It provides coverage for hospitalization charges, pre and post-hospitalization charges, diagnostic tests, ambulance charges, and even daycare treatments that may not require a stay in the hospital.
But apart from the financial security that health insurance provides, you also get access to better healthcare facilities. If you are financially free to spend on your health, you choose the best hospital, the best doctor, and the best treatment for yourself rather than settling for whatever you can afford.
Types of Health Insurance Plans You Should Know About
Having an idea of all the options makes it much easier for you to make a purchase decision.
- Individual Health Insurance – This type of insurance plan covers a single person. This plan is best for young professionals, students, or for anyone who needs a specific coverage amount exclusively for themselves, without having to share it with their family.
- Family Floater Plan – This plan provides coverage for the whole family under a single insurance plan. This is also a cost-effective and easy option, making it one of the most popular insurance plans for families of two to four members.
- Senior Citizen Health Insurance – This type of insurance plan is for people above the age of 60. This plan covers all age-related diseases, pre-existing diseases, and hospitalization risks.
- Critical Illness Plan – This plan pays out a lump sum amount if a critical illness such as cancer, heart attack, kidney failure, or stroke strikes. It is an extension of your basic health plan and pays out to cover the non-medical expenses of a prolonged illness.
- Group Health Insurance – This is offered by companies as part of the employee benefits scheme. Although this is a wonderful addition, it should not be your only plan since it terminates as soon as the employee changes jobs.
What to Check Before Choosing a Health Insurance Plan
Buying health insurance is not just about selecting an insurance policy based on the lowest premium. This is what actually matters:
- Sum Insured Adequacy – It is always advisable to opt for a sum insured of Rs. 10 to 15 lakhs for each person in metro cities due to the current price level. It is not wise to compromise on sum insured to get a premium discount of a few hundred rupees.
- Network Hospitals – Ensure that the insurance provider offers cashless facilities for your preferred hospital and doctor. More the number of hospitals and doctors in their network, the lesser the hassles involved in raising claims.
- Waiting Periods – Most insurance providers have a waiting period of 2 to 4 years for pre-existing conditions. This is an important factor to be considered while buying an insurance policy if there is a pre-existing condition.
- Co-payment clause – Some plans may require you to pay a part of the bill from your own pocket. It would be better to avoid plans with high co-payment requirements.
- Claim settlement ratio – This will tell you the reliability factor of the insurance company. It would always be better to choose a company whose claim settlement ratio is above 95%.
- Restoration benefit – This benefit restores the sum insured if it gets exhausted during the policy year. This is a great addition for families.
The Best Time to Buy Is Right Now
If you are young and in good health when you buy a health insurance policy, you can get a lower premium and fewer exclusions on your policy. However, if you wait until you are in poor health, you can expect a higher premium, longer waiting periods, and exclusions.
You should not wait until a medical emergency strikes to remind you of the importance of health insurance. Instead, take steps today, weigh your choices, and get a policy that really works for you.If you are looking for expert advice on how to select the best health insurance plan according to your needs, you can contact Insurance Guru for assistance.
