Health Insurance: Complete Guide

How to choose the best Health Insurance for yourself and your family?

Health is a very fragile word and so does its meaning. Health doesn’t come with a guarantee to always be good. Our day to day lifestyle contributes to the major part of our bad health. Under such circumstances having health insurance has become an absolute need for everyone.

Health Insurance is an insurance which covers the financial loss arising out of poor health condition or due to permanent disability which results in loss of income. It covers the medical or surgical expenses of an insured person.

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Why Do We Need Health Insurance?

Illness can come anytime without knocking our doors. Be already prepared both mentally and financially is the best way to tackle down such unwanted causes. With rising healthcare costs and other medical treatment, it becomes nearly impossible to meet the heavy treatment expenses for a poor or a middle-class individual. That’s where the need for health insurance comes. Health insurance provides timely and affordable medical help. In this way, it provides financial support to tackle down your delicate days.

Types Of Health Insurance Plans In India

Insurance Company Provides various types of health insurance plans so you can choose the one that suits you the most. Below are some well-known plans in India (can differ according to your country).

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Types Plans Suitability
Individual PlanFor Individual
Family Floater PlanCover Whole Family self, spouse, children and parents
Senior Citizen PlanEspecially for senior citizen age 60 and above
Critical Illness PlansFor serious and fatal Diseases
Unit Linked Insurance PlanInsurance cum Investment Plan
Group Health Insurance PlanSuitable for small Corporates Houses
Personal Accident planCover Personal Accident Expenses

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Things To Keep In Mind While Choosing Health Insurance

We don’t take Health Insurance Daily, it is once in a lifetime need to have health insurance. So it becomes necessary to select that one Health Insurance which not only provides us the all-important benefits but also can be a little pocket friendly.

There are loads of confusion regarding health insurance. Which one to take? which not to? does it cover everything? is it flexible? does it cover my hospital? and on and on.

Here Are the Important Things To Keep In Mind While Choosing Your Health Insurance

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1. Claim Settlement Ratio

Claim Settlement Ratio is the ratio of a number of claimed settled by the insurance company to the number of claimed it has received. Higher this ratio more are the chances that your claim will also be settled by the company.

It is represented in percentage. Higher the claim settlement ratio better it would be for you. Usually, 90% is considered to be good and while choosing a policy it should be your number one priority to go for a high settlement ratio.

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2. Premium

Premium is the amount of money an insured person has to pay to the insurance company for its policy. It is basically an installment that can be paid monthly, quarterly, or yearly to the insurance provider against the insurance.

While choosing an insurance policy it is very necessary to choose a plan with a low premium and high cover. In this way, you not only choosing to the lesser amount for your greater cover, but it also helps you in saving money on premiums.

You can also check premium of some well-known health insurance company or can calculate on your own on POLICYBAZAAR.COM

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3. In House Claim Settlement

Let me explain, there are few insurance companies that use the third party to settle your insured money. Sometimes these third party administrators can create a problem in giving your insured money. And sometimes they take months and years to settle your claim which would be of no use by then.

I am sure in such a situation you don’t want to face these nuisances or unwanted problems. So it is advisable to choose that policy which provides In House Claim Settlement mean they are going to pay your medical expenses by themselves.

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4. Network Of Hospitals

While choosing the policy always lookout that with how many hospitals of your surrounding does insurance company tied up, or how large is their network to get the cashless facility.

Different companies have their tie-up with different hospitals. In simple words, if the hospital you are admitted in has tie-up with your insurance company than in this case you don’t have to spend a penny from your pocket. The hospital directly sends your bills to your policy provider and they will settle it.

But if your insurance provider doesn’t have such a tie-up then you have to pay all the medical expenses and wait for a long time until the insurance company reimbursed your money.

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5. Waiting Period

Health Insurance Policy also covers Pre-existing Illness or maternity cover after a certain wait period. Most of them have a waiting period of 3-4 years. In simple words suppose you have diabetes so after a waiting period that is after 3-4 years it will cover in your policy not immediately.

Some diseases are included in an immediate cover and some are in the waiting period. That is totally up to the policy provider. So it is necessary to check that if you have any pre-existing illness it should have a waiting period as low as possible.

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ALSO KEEP IN MIND

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With all the most important points listed above, you should also consider the points given below in order to avoid any meanwhile error.

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6. Pre and Post Hospitalization Expenses

Pre and Post Hospitalisation expenses are the medical cost that we incurred before and after the hospitalization respectively. Most Health Insurance companies provide 45-90 days of pre and post-hospitalization expenses. So while reading policy you should check that they provide this facility or not.

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7. Single Private Room Facility

See one of your loving ones is in the hospital in the same room with 5 other patients. So there are people constantly coming and going, laughing, talking which creates a huge disturbance for the person who is critically ill.

There are some policies who only give a claim when you get a general or common sharing room. So it is important to prefer a policy which provides a single-room facility. If this is not written in the document ask your insurance provider and make sure to avail of this facility as it is of great use.

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8. Day Care Treatment and OPD Consultation

Not every illness results in you in the surgical room of the hospital. Sometimes all we need a day car treatment or just an OPD checkup, but while choosing a policy you should also be keeping this thing in mind.

The most well-known health insurance company already provides Day Care Treatment and OPD consultation but if they don’t it’s your duty to ask or prefer one that provides the same.

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CONCLUSION

Health Insurance is not something we buy daily. It is once in a lifetime chance to choose the best Health Insurance out there. So don’t be nervous while choosing any policy, do some research on the points given above. While writing down the form, please it’s a request to be as true as possible about your existing diseases, it might increase premium but in the end, it would be beneficial for you and your family.

Well, requirements from health insurance vary person to person, the best health insurance policy for me might be different from the health insurance for you. Keep these above points in your mind while choosing the best policy for yourself or your loved ones. Keep yourself healthy and stay safe.