Thursday 22 September 2016

Tips on How to Buy the Right Health Insurance Policy

Health Insurance sector in India has shown growth in the recent years, but still less than 20% people are covered under a health insurance policy and the majority of those who are covered under different health insurance plans in India are either government employees or consider health insurance as only a tax saving tool. Going for a health insurance policy is a good decision, but going for a health insurance plan which suits your need is the best decision. With the increasing standardization and government initiative in health insurance sector, now you have the option to choose the best health insurance policy through which you can get maximum benefit and security.

 Choosing a health insurance plan should depend on your condition and requirement. The best health insurance plan suggested by your friend because he bought it can result in providing zero benefit when you need.     
  
Here are some of the tips, based on which you can choose the best health insurance plan-

Required coverage

A good health insurance plan is the one which has the right amount of coverage based on medical condition, requirements and rise in the price of health care. A high coverage amount will end up with out of budget premiums while a low coverage will end up no benefit when required.

Fixed or indemnity Based Plan

There are basically two types of health care plans in India, Indemnity plan and Fixed benefit hospital plans like Critical illness plan which gives you a fixed sum assured if diagnosed with a particular disease mentioned in the policy. It is better for people who have a family history of a particular disease like kidney failure, heart attack, cancer, etc., which requires long medical treatment with high cost. It is also beneficial for people who don’t want a limit on their medical treatment expense of a particular disease. On other hand, Indemnity plan covers hospital cost which includes cashless payment or reimbursement after submission of proper bills. Indemnity plan insures the hospital cost regardless of the type of diseases.

 Co-Pay

There is a clause of Co-pay in Health Insurance Policy under which a percentage of the total medical expense has to be paid by the insured person. For example, if your medical expense comes out to be Rs.10,000 and your Co-pay percentage is 10%”, then you have to pay Rs.1,000 from your own pocket and the rest Rs.9,000 will be paid by the insurance company. It is beneficial for people who are healthy and require fewer visits to the hospital as with Co-pay you get discounts on the premium paid.

Cover your whole family

A family floater plan helps you to cover the whole family under one plan and the amount under your insurance plan can be used by a single member of the family. You need to check whether your policy is providing a family floater or not. It is best for people who want to cover their whole family in a single plan.

 Check the Sub Limits

Checking Sub-limit in your health insurance policy is very much necessary. Sub limit is the limit on your coverage benefit or amount which puts a restriction on the payout under a health plan. There are sub limit on room rent or specific treatment. Before buying a health insurance policy, you must check the amount of sub limit, on which parts of medical expense it is applicable and whether you want it or not.

Restore Benefit

 A restore benefit, as the name suggests, helps you to restore the amount of coverage if you have already exhausted the sum assured during the policy. Like if you have exhausted 3 lakhs coverage in a policy year and, you need some medical attention again, then the coverage will be restored if it has this benefit. Check for restore benefit before buying a health insurance policy.

Before buying a health insurance policy always analyze your condition, requirements, benefits which you need and never forget to read the fine clauses mentioned in your health insurance policy to avoid any bad surprise at the time of claim.


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