Read This Before Buying Health Insurance

We’ve put together all the important things you should know about health insurance — it will help you choose the right policy and get the protection you need!

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Health insurance is extremely important. It ensures you are protected from hospital bills and the cost of medical emergencies. However, for first-time buyers, it can seem a bit complex.

Keeping this in mind, the article will take you through important things that you should know about health insurance. It might provide you the clarity required to purchase the perfect health insurance plan.

What Is Health Insurance Exactly?

It is an agreement between you and your insurance company wherein the latter agrees to compensate you for medical expenses you might incur. These medical expenses could arise when you fall ill or meet with an accident.

In most cases, when you are admitted to a hospital, you enjoy cashless treatment. This means that you do not have to pay anything to the hospital towards your medical expenses. This is because most health insurance companies have tie-ups with leading hospitals. These hospitals forward your bills to your insurance company, which foots your bills.

In other cases, in which the hospital does not offer cashless benefits, you can claim reimbursement from your health insurance company at a later date.

Why Is Health Insurance Important?

The cost of healthcare is increasing every year. Often, people fall ill or require certain medical procedures but cannot afford the treatment they require. This is when your health insurance comes into play. Health insurance also opens doors to advanced treatments and better medical care options that were previously out of reach. Combined, the two benefits of medical insurance can help you back to good health.

What Are The Benefits Of A Health Insurance Policy?

Compensation for pre- and post-hospitalisation expenses: Besides covering your hospital bills, a health insurance plan will also ensure your pre and post-hospitalisation expenses are taken care of. This includes things like diagnostic tests, doctor’s consultations.

Compensation for transportation costs: Ambulance charges are usually separate from hospitals bills; several health insurance plans cover these costs as well.

Compensation for medical check-ups: Your health insurance company wants to see you healthy. That’s why they cover the costs of medical checkups as well!

Tax benefits: Health insurance tax benefits can help you avail deductions on your taxable income to the tune of Rs 1 lakh, as per section 80D of the income tax.

No claim bonus: Another huge plus of a health insurance policy is no claim bonus. It could increase your cover at no cost or reduce your premium amount without lowering your cover every year. This is as long as you do not make a claim against your policy.

Checklist To Purchase The Right Health Insurance Policy

  1. Decide your coverage amount: The right health insurance policy should have a sum assured that matches your needs and requirements
  2. Have more inclusions: The best plans cover everything. Pre- and post-hospitalisation costs, room rent, transportation costs, medical check-ups, and so on should be covered.
  3. Have fewer exclusions: All plans come with a set of exclusions. However, the number of exclusions is not uniform across insurance plans. This is why you must compare exclusions before you make a purchase.
  4. Choose no claim bonus benefit: The plan should have a no claim bonus that suits your needs; some increase the coverage while others lower the premium.
  5. Look for shorter waiting period: Most health insurance plans come with a waiting period. If you fall ill during this period, the insurance company may not cover any of your medical expenses. That’s why you should buy health insurance that has shorter waiting periods or no waiting periods at all.

What are The Different Types Of Health Insurance

  1. Individual plans: As the name suggests, these sort of plans provide coverage for one single person. For such plans, the premium amount is based on the age of the insured.
  2. Family floater plans: If you wish to include all the members of your family under one single plan, then a family floater plan is exactly what you require. These plans have one large sum assured that can be used by all members or by any of the individual members.
  3. Senior citizen health insurance plan: Senior citizens plans offer a higher level of protection, and are designed to cover health issues that occur during old age.
  4. Critical illness insurance plan: Such plans offer cover against critical illnesses such as kidney failure, cancer, heart attack.
  5. Maternity health insurance plan: Things like pre and postnatal care, child delivery expenses of newborn babies, ambulance costs can really add up! Some insurance plans will cover all this as well as provide cover for the child for a certain period of time.
  6. Personal accident cover: Accidents result in medical expenses, and there are health insurance plans that offer to cover these costs for you!

The Claim Process For Health Insurance

Knowing the claim process for your health insurance policy is important. Though every insurance company might have a slight deviation from the next in terms of formalities, the procedure to register a claim and receive compensation is uniform across most insurance companies. However, this process will differ based on the type of claim you have registered.

Cashless claims

This is probably the easier way to claim compensation. One has to simply provide the details of their insurance plan at the hospital, and the expenses will be taken care of without much intervention by the insured. The bills will be forwarded to the insurance company and the tabs will be settled.

Reimbursement claims

In case of reimbursement, the insured will have to cover all medical expenses and hospital bills themselves. Then they will have to register a claim and provide all the original bills to the insurance provider that will verify and approve or reject the claim. Upon approval, the claim amount will be reimbursed to the insured.

The views, thoughts, and opinions expressed in the artefact above are for marketing purposes only. Before concluding the sale, please refer to policy wordings and prospectus

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