Medical emergencies seldom occur with
prior warning, requiring the best medical attention when they come. And so we
need to be financially prepared for them in advance. Whether a simple checkup
or a critical hospitalisation, medical procedures seem to be getting
increasingly expensive by the day, which can quickly deplete your savings.
A health insurance policy is a great way
to ensure that you and your family get the best medical care without spending a
fortune on medical bills.
Now that we know the importance of a
health insurance policy, we need to understand that the modern insurance market
is a highly competitive sector. A host of health insurance companies offer
several features and services to convince you to choose them over their
Competition. Although necessary, this process can be a bit overwhelming for
people not well-versed in the workings of a health insurance plan.
This article will highlight several
important factors before choosing the best health insurance in
India.
Coverage
Coverage is one of the most important
factors when choosing a health insurance policy. In essence, it is the amount
of money that the health insurance company pledges to offer during any medical
emergency. Additional coverage could be daycare expenses, hospitalisation fees,
maternity coverage, etc. It is often advised to assess your medical needs
better and choose the right amount of coverage since excessive coverage will
lead to a higher premium rate. However, an less coverage amount can mean
inadequate health coverage when you need it.
Affordable premium
A health insurance policy is designed to
save money in the long run, so choosing a health insurance plan with excessive
monthly premium rates is somewhat contradictory. Several methods, such as
premium calculators, add-on riders, no-claim bonuses, and so on, ensure that
the overall premium rate is low while also providing adequate insurance
coverage.
Plans for family
Health insurance companies
offer individual and family floater plans for you to choose from. If you are
the only individual with no kin or family to support, then the individual plans
are best for you. But if you are looking for your parents health insurance or
your family's health insurance, it is best to opt for the family floater plans,
which will be hassle-free and much more affordable than individual health
insurance plans.
Easy claim process
The time taken to settle an
insurance claim by a health insurance company can be one of its most critical
features. A time-consuming and highly inefficient claim process beats the
purpose of insurance. Nowadays, most popular health insurance companies offer
cashless settlement features, which means that the medical bill is cashlessly
settled between the insurance company and the hospital without you having to
pay a single dime out of pocket.
Add-on features
Health insurance policy
add-ons are specific riders insurance companies offer to help you better
customise the health insurance plan to suit your needs. Hence, you should look
for suitable riders before choosing your health insurance plan. Some famous
add-on riders are critical illness cover, accidental cover, and maternity
cover, to name a few.
Co-Payment clause
A co-payment clause
essentially refers to the percentage of the hospital bill you must pay out of
your pocket during insurance settlement. Generally, a lower co-payment clause
is desirable since you have to spend less out of your pocket, and the insurance
company covers most of the hospital expenses. However, co-payment can reduce
the monthly burden of the premium you have to pay for your policy.
Tax benefits
Under Section 80D of the
Income Tax Act, 1961, individuals who pay regular health insurance premiums can
avail of tax benefits up to INR 25,000, which can rise to INR 50,000 if your
health insurance plan includes your senior citizen parents.
Lifetime renewability
Insurance renewability is
the ability to renew your existing insurance policy once it has expired. For
example, imagine a health
insurance for parents company offering renewability for up to 60
years. Once you reach the age of 60, you will have to buy a new health
insurance policy, which will be both expensive and time-consuming. So it is
better to opt for health insurance plans with lifetime renewability in the
first place.
Claim settlement ratio and company
reputation
The claim settlement ratio
of an insurance company refers to the claims settled by the company against the
total claims received. Opting for a health insurance company with a high claim
settlement ratio is always better. You can also look at the company's
reputation by checking its recent reviews.
To conclude
With the above pointers, we
have tried to highlight the key features you have to consider before choosing
the right insurance policy for you and your family. You can use them while
buying insurance and secure your finances from unexpected medical expenses.
