Health Insurance

Key factors to consider before buying Health Insurance

Co - Pay.

Co-pay is a fixed percentage of the hospital bill you will have to pay when you make a claim, while the balance will be paid by the insurance company. For e.g. If your policy has a 10% Co-Pay clause, it means for a Rs 1,00,000 claim, you have to pay Rs 10000 while the insurer will pay Rs 90000. Ideally, opt for a “no co-pay” plan so you don’t have to shell out for every claim.

Waiting Period for Pre-existing Diseases.

Pre-existing diseases are classified as diseases/conditions that a person has before buying health insurance. All pre-existing diseases aren’t covered from day one of buying the policy. The time taken to cover pre-existing diseases will vary from plan to plan. Check the amount of time taken to cover pre-existing diseases in your plan.

Lifelong Renewable.

The duration of coverage is the most important factor in buying a health insurance policy. Your health is most likely going to deteriorate only in your sunset years so ensure that your coverage is lifelong and not for a few years. Always go for a plan that can be renewed lifelong.

Room Rent.

Your room preference during hospitalization matters (such as shared room, private room or private room with high-end facilities). A costlier room means you’ll pay higher treatment and hospitalization charges! It’s better if your plan has a higher room rent limit per day.

Your Premium for Health Insurance is determined by

Your current age

Partial withdrawals are allowed from 6th financial year. However, the full amount can be withdrawn after 15 years. Source: www.indiapost.gov.in for PPF and NSC. Source: www.sbi.co.in for Bank FD. *Returns are subject to market risks.

Members included!

Partial withdrawals are allowed from 6th financial year. However, the full amount can be withdrawn after 15 years. Source: www.indiapost.gov.in for PPF and NSC. Source: www.sbi.co.in for Bank FD. *Returns are subject to market risks.

Room preference

Partial withdrawals are allowed from 6th financial year. However, the full amount can be withdrawn after 15 years. Source: www.indiapost.gov.in for PPF and NSC. Source: www.sbi.co.in for Bank FD. *Returns are subject to market risks.

Pre-existing medical condition

Partial withdrawals are allowed from 6th financial year. However, the full amount can be withdrawn after 15 years. Source: www.indiapost.gov.in for PPF and NSC. Source: www.sbi.co.in for Bank FD. *Returns are subject to market risks.

Smart buying tips for your Health Insurance

Assess Your needs

You can’t choose your relatives. Luckily, you can decide which family members to include in your health insurance policy. The second important thing is your room preference during hospitalization such as shared room, private room or private room with high-end facilities.

Extra-Coverage for Critical Illness

A smart health insurance policy is one that covers you for bolts out of the blue – medical expenses for critical illnesses like cancer, stroke etc.

Know Your Budget

Consider your budget in order to avoid a huge premium. Don’t pick all the options available under the insurance policy. This will eventually increase your premium amount. So tighten your purse strings sensibly.

Read the Fine-Print

The devil is in the details. Always read the “Terms & Conditions” of the policy i.e. features that are not covered under the policy. Make it a point to ask for sample policy wordings. With the in-depth knowledge about certain definitions, terms & conditions, exclusions and offered benefits, you’ll always be the smarty-pants who’s one step ahead.

BENEFITS OF HEALTH INSURANCE POLICY

Cashless facility

Each health insurance company ties up with a large number of hospitals to provide cashless health insurance facility. If you are admitted to any of the network hospitals, you would not have to pay the expenses from your pocket. In case the hospital is not part of the network, you will have to pay the hospital and the insurance company will reimburse the costs to you later.

Pre-hospitalisation expenses

In case you have incurred treatment costs for the ailment for which you later get admitted to a hospital, the insurance company will bear those costs also. Usually the payout is for costs incurred between 30 to 60 days before hospitalisation.

Hospitalisation Expenses

Costs incurred if a policyholder is admitted to the hospital for more than 24 hours are covered by the health insurance plan.

Post-hospitalisation expenses

Even after you are discharged from the hospital, you will incur costs during the recovery period. Most mediclaim policies will cover the expenses incurred 60 to 90 days after hospitalisation.

Day Care Procedure Expenses

Due to advancement in technology some of the treatments no more require a 24 hours of hospitalisation. Your health insurance policy will cover the costs incurred for these treatments also.

Ambulance Charges

In most cases the ambulance charges are taken up by the policy and the policy holder usually doesn’t have to bear the burden of the same.

Cover for Pre-existing Diseases

Health insurance policies have a facility of covering pre-existing diseases after 3 or 4 years of continuously renewing the policy, i.e. if someone has diabetes, then after completion of 3 or 4 years of continuous renewal with the same insurer (depending on the plan offered and his age), any hospitalisation due to diabetes will also be covered.

Tax Benefits

The premiums paid for a Health Insurance Policy are exempted for Under Section 80D of the Income Tax Act. Income tax benefit is provided to the customer for the premium amount till a maximum of Rs. 25,000 for regular and Rs. 30,000 for senior citizen respectively.

No-Claim Bonus

If there has been no claim in the previous year, a benefit is passed on to the policyholder, either by reducing the premium or by increasing the sum assured by a certain percentage of the existing premium.

Health Check-Up

Some health insurance policies have a facility of free health check-up for the well being of the individual if there is no claim made for certain number of years.

Organ Donor Expenses

The medical expenses incurred in harvesting the organ for a transplant is paid by the policy.