Every aspect of life and the economy has been rapidly evolving, and healthcare is no exception. Today, the appropriate health insurance coverage is a godsend. Unexpected sickness or accident might occur anytime, and health insurance could help retain your life savings. Medication and hospitalization can be quite expensive. With the skyrocketing expenses of advanced medical treatments, securing your family’s finances with health insurance coverage is vital.
What is health insurance, and how does it work?
Health insurance is an arrangement wherein an insurance company agrees to pay for any/all treatment expenditures for an illness concerning the insured person. In most cases, insurance companies have partnered with prominent hospitals to give cashless treatment to their customers. In some cases, the insurer may reimburse the medical expenses to the insured member post-hospitalization. It is always advisable to get a health insurance plan for the whole family.
Importance of health insurance
Health insurance is undeniably one of the most crucial insurance plans, given the rise in the frequency of health problems at a young age. Furthermore, the excessive expenditures of medical care emphasize the need to opt for health insurance coverage.
Unfortunately, health insurance is the most undervalued form of insurance in India since it doesn’t pay out till you become sick. While no one wants to get sick, it is important to recognize that health issues are an unavoidable part of life. As a result, it is critical to prepare yourself financially in the event of a health crisis. You can’t plan to get sick, but you can arrange a financial backup for the worst-case scenario. In India, you may choose from a wide range of health plans, including individual plans, family floaters, and senior citizen health insurance. However, you must first analyze your needs before purchasing a health plan.
Benefits of Having a Health Insurance Policy
- Cashless treatment – If you are covered, you will be able to receive cashless treatments at the insurer’s listed network hospitals without paying the hefty hospital bills from your own pocket.
- Pre and post-hospitalization – The costs of pre and post-hospitalization expenses are covered by insurance policies for up to 30 and 60 days, respectively, depending on the insurance plans selected.
- Transportation fees – The insurance policy also covers the sum paid to an ambulance for the insured’s transportation.
- Medical Check-up – Some insurance policies provide health checks as an option. Some insurers will also give a free annual health check-up benefit.
- Room rent – Depending on the premium paid by the insured, the insurance policy may also cover room expenditures.
- Tax benefit – Health insurance premiums are tax-deductible under section 80D of the Income tax Act.
Growing healthcare expenses has made it impossible to receive the finest treatment without paying a lot of money, so choosing the best health insurance policy for the family is very important. Here are a few tips for choosing a good family insurance policy:
Look for the best insurance coverage
Choose a health plan that covers a variety of medical issues, such as pre and post-hospitalization coverage, ambulance costs, critical illness coverage, maternity benefits, cashless treatment, daily hospital cash benefit, in-patient hospitalization, and so on. If you’re getting medical insurance for your family, be sure the coverage extends to all the members.
Consider your needs, compare several plans, and review the policy’s benefits and limits. Most importantly, don’t overlook hidden factors such as sub-limits, waiting periods, and co-payment that play a vital role at the time of claiming. Therefore, double-check the policy wordings for all of the terms and conditions. A careful study of the policy coverage will guarantee that you and your family do not face inconvenience during the claim process.
Take a look at the Waiting Period Clause.
Generally, pre-existing illnesses, maternity costs, and specialized procedures like hernia, varicose veins, etc., are covered after a set waiting time, which varies from one plan to the next. Maternity expenditures, for example, are generally reimbursed after 2 to 4 years from the date of policy acquisition. Check the waiting time for all types of health insurance family plans to cover pre-existing conditions and select a plan with a short waiting period.
Select a plan with lifetime renewability.
Renewability is one of the most crucial factors differentiating the best family health insurance plan from the rest. It’s crucial to look at the policy’s duration to see if it’s renewable for life or only for a short period. This is because health insurance becomes most important in later life. Hence, the ideal health insurance coverage offers lifelong renewability. It ensures that the family’s coverage remains the same in the years ahead, even after they have passed the age restriction. It also eliminates the trouble of purchasing new insurance.
For example, suppose a policyholder purchases a health insurance plan with a 45-year renewal period. In that case, the policyholder must purchase a new plan with a considerably higher premium rate after 45 years. On the other hand, if a person purchases a lifetime renewability plan, they may keep the same plan without worrying about policy renewal.
Examine the Co-Payment Provision.
It is the proportion of the total claim that you will be responsible for paying out of your own pocket. The insurance company covers the remaining hospitalization costs. For example, if your policy has a 10% Co-pay provision, you would be required to pay Rs. 10,000 out of pocket for a claim of Rs. 1 lakh, while the insurance company will pay Rs. 90,000 as part of the claim. You may also seek such insurance that does not need a co-payment.
Various care health insurance policies offer lump-sum payments in case of specified surgery, and others cater to the target audience’s needs like senior citizens. These funds help mitigate various direct and indirect financial consequences of a critical illness.
Examine your options for adding additional family members.
When purchasing a family health insurance plan, the policyholder should look for alternatives to easily and quickly add new family members. Suppose a senior member of the family becomes ineligible for coverage or passes away. In that case, other family members can continue to be covered under the same plan without compromising the plan’s advantages.
Choosing the best family health insurance plans in India prepares you well in advance to attend to your family’s healthcare needs without draining your savings.
