In this piece, we’re going to look at how you can choose the best health insurance policy in India.
- Health insurance importance for Millenials
- What facilities are covered by health insurance
- Types of Health Insurance in India
- Things to Consider while choosing the best health insurance policy in India.
- Policy Deciding Factors: Checklist
Health Insurance: A necessity for the Millenial
Health Insurance is probably one of the most underrated yet one of the most important insurance products you can buy. It basically covers the part or whole of the risk for a person incurring medical expenses. A health insurance is calculated by the overall risk of health care and health system expenses to provide health care benefits as per the terms laid out in a particular insurance agreement. Many millennials are now looking at health insurances to keep up with the medical expenses in today’s economy.
Health insurance has always been underutilized in India with many individuals either not opting for a health plan or being content with the health insurance provided by their respective employers. However, in a survey conducted by Max Bupa in partnership with Nielsen revealed that most Indians ( up to 70%) consider healthcare plans and health insurance to be more important than life insurance. Studies also revealed that 60% of Indians also admitted that the health care plan provided by their employers will not be sufficient to provide for health care in times of desperate need.
As the rates of medical inflation keep soaring each passing year, individuals or families without adequate health care insurance can be hit severely financially by falling into a spiral of financial distress or worse yet, be subject to poor health care conditions because of a lack of a good insurance policy.
What Health Insurance Covers
Health Insurance Policies are of varying types and for varying sections of people like individuals, groups like employees of an organization or families. However, there are a few basic amenities and facilities that policyholders are entitled within the policy.
- Room and boarding expenses.
- Expenses for Nursing
- The fees for specialists and consultants including doctor and surgeon fees
- Routine health checkups laboratory fees as well as the sum insured for individual/family Cumulative bonus
- Pre and post Hospitalization charges, Cashless facility, Critical illness benefits, Topup policies, and ambulance charges.
Types of Health Insurance in India
In order to decide upon the best health insurance policy in India, it is first necessary to know what types of policies exist in the country. Here’s a list of the major types of health insurance policies in India.
- Individual Mediclaim – Covers hospitalization expenses for a single person for the sum assured.
- Family Floater Policy -A healthcare policy where the sum assured is floated across the whole family covering medical expenses of each and every member of the household.
- Unit Linked Health Plan (ULHP)- It’s an investment as well as an insurance scheme where the amount assured is returned (if available ) after the insurance period ends.
- Health Plan by employers- Many times employers offer a group health insurance policy to their employees as compensation against salaries. Many a time these policies also cover the spouses, children or family members of the employees.
- Health Insurance for Senior citizens- A policy implemented in recent times which helps cover medical expenses of senior citizens and also empower them tax relief of up to Rs. 20,000. However, the cost of the premium (amount paid towards insurance) is higher for these types of insurance products.
Things to Consider while choosing an Insurance Policy
Pick an Appropriate Coverage Amount
The cost of quality healthcare is ever-rising with medical procedures costing more and more every day. For example, a simple heart surgery in today’s date costs upwards of Rs. 2.25 lakhs. This amount in itself could be a huge amount for middle-class families in India which will either send families into a spiral lending and financial distress or leave them with sub-standard healthcare if no appropriate insurance is available.
Insure and Secure the family’s health
Individual mediclaim is good and provide healthcare in times of dire need. However, if you’re a family person ensuring every member separately can be tedious especially if you live in a joint family. Family Float Insurance plans provide the flexibility for anyone in the family with medical distress to get treated immediately. Family float plans also have lesser premium payment requirements and also ensure you have enough assured amount to keep your family members healthy.
Plan Ahead: Plan Insured sum according to Future needs.
The amount ensured should be selected carefully by considering the age factor of the concerned person. If you’re young, you might not need a high insured amount right now. However, as you grow up and the body is exposed to lifestyle, aging as well as other types of diseases, the cost for such medical expenses will continue to compound and rise in the future. In addition to this consider the health of a spouse if you’re about to get married in the near future.
Pre-Existing Illness Conditions
Majority of Health Insurance policies have a specified waiting time (2-4 years) for illnesses already under treatment. Thus, it becomes important for individuals to consider this and choose a policy with the least waiting time to be insured as quickly as possible against other unforeseen medical emergencies.
Maximum Age Renewal
As we grow older, it is inevitable to battle medical issues due to the deterioration and degeneration of the body. Thus, it is advisable to keep a health insurance policy that can be renewed in old age rather than purchasing a whole new health insurance policy at that time at that age.
High Claim -Settlement Ratio Policies
Claim to Settlement Ratio is basically the number of claims settled by the insurer over the total claims that it receives over a time period. Individuals looking to purchase a health insurance policy with a high claim to settlement ratio. This will deploy the confidence that the insurer will not reject the claim unless and until there is a substantially valid reason behind it.
Policies with sub-limits
Today, most of the health insurance policies come with sub-limits with specified rates for per day room rent in case of hospitalization as well as for other medical facilities. It is advisable of insurance-seekers to look at policies with the highest slabs of insured amount for sub-limits on more intricate medical facilities.
It is always convenient to go with a health insurance plan which has a lot of hospitals under its insurance network as this good help avail the cashless treatment facility at these treatment centers. It is useless and sometimes redundant financially to have a health insurance with very fewer hospitals within their network.
Exclusions, Online Reviews, Premium Costs, Critical Illness cover
Every health insurance has a certain policy on a list of treatments not covered in their policy. It is wise to look at all the exclusions of the policies and choose the one best suited to your medical requirements. In addition to this, policies cover for critical illness cover (add-on rider) should be checked to keep a provision to deal with unforeseen medical circumstances. On top of this, insurance-seeker should compare online reviews given by other insurance holders for honest opinions about various policies. Also, looking at the premium costs for these individual policies will also be of great help in making an informed decision.
Choosing the best health insurance policy in India: Checklist
- No Claim Bonus
- The waiting period to be served for pre-existing ailments
- Is there any waiting period for specific illness
- Incurred claim settlement ratio
- Maximum renewal age period
- Critical Illness add-on option
- Network hospital
Thus, it is a comprehensive task to choose the best health insurance policy in India, At Finbucket, India’s top Loans and Investment Portal, we understand that sometimes it can be confusing to pick and choose the right fit for you. Therefore, we provide you with a wide range of services including Health Insurance other insurance needs such as Car Insurance, Life Insurance, Tax Insurance, and Cancer Insurance. We also provide Business Loans, Home Loans, and investment in Mutual Funds.
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