We all want to invest in a health insurance plan that can provide maximum protection to our loved ones in their hour of need. However, with so many different types of health insurance plans, it can often get confusing to choose the right one. Going through these policy types, their features, benefits, inclusions, exclusions, etc., may seem to be a daunting task.
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In their bid to avoid the hassle, most people end up investing in a health insurance plan that doesn’t quite suit their needs. But you can completely avoid that mistake if you refer to the following tips.
- Choose The Right Coverage
The best health insurance is the one that offers you comprehensive coverage against a wide range of medical problems, ambulance charges, pre and post-hospitalization expenses, cashless treatment, cash benefit, etc. If you are buying medical insurance for yourself and your family, make sure that the policy caters to your needs of all the people it intends to cover.
To do that, you need to first assess your health insurance requirements, different plans, check policy features, their limitations, etc. and then make an informed decision. Don’t forget to check out the hidden factors like waiting period and sub-limits before choosing a policy. You must also read the policy documents carefully to ensure that you understand all the terms and conditions properly.
To be able to invest in insurance products wisely, you should educate yourself about the basics such as what is life insurance, what is critical illness rider, why do you need to have a health insurance plan, etc.
- Look For Flexible Plans
When buying a health insurance plan for your family, you need to make sure that you are able to add family members with ease. At the same time, if a senior member in the family health insurance plan passes away, the others should be able to continue the policy and enjoy the same coverage and benefits.
- Waiting Period
In most cases, health insurance plans cover pre-existing medical conditions, maternity expenses, and treatment for specific conditions after a waiting period of up to 4 years. However, this number may vary from insurer to insurer. Therefore, you should look for a plan that comes with the least amount of waiting time period.
- Co-Payment Clause
Co-payment is the percentage of amount that you would have to pay from your own pocket, and the remaining hospitalization expense is borne by the insurance company. For instance, if your health insurance has a 10% co-payment clause, it means that for a claim of Rs. 50,000 you would have to pay Rs. 5000 from your own pocket while the insurer pays the rest Rs. 45,000. There are also policies that come without a co-payment clause. So, be sure to check about that as well.
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- Lifetime Renewability
This is one of those factors that often go unconsidered in the process of buying health insurance. Make sure you check the number of years your policy will remain valid and also check if it comes with lifetime renewability or not.
It is important because you normally need a health insurance plan much late in life. So, choose a family health plan that gives you the option of lifetime renewability option. This will allow you to continue with the same plan for the years to come, without the need to buy another policy once you have crossed the age limit. For example, your health insurance will offer you renewability until 45 years. But once you cross that age, you would need to buy another policy that will cost you a lot more.
- Upper Limit On Room Rent
Whether you get a shared room or a private room in a hospital depends on the type of plan you choose. It is always better to choose a policy that has a higher limit for the room rent to avoid paying from your own pocket.
- Compare Quotes Online
Multiple insurance providers, such as Max Life Insurance, allow you to check and compare health insurance quotes online. It is a good practice as you will be able to make an objective investment decision once you can see which policy gives you maximum benefit for the least amount.
- List Of Preferred Hospitals
Once you have a list of prospective health plans, you can check if they have preferred hospitals and doctors in their network. Always choose an insurer that has a wide network of hospitals across the world.
- High Claim Settlement Ratio
The claim settlement ratio is the number of claims that are settled by an insurance provider with regards to the total number of claims received. It will help if you choose an insurer that has the highest claim settlement ratio. A safe number will be in the high 90s, which means that they settle more than 90% of the claims successfully.
You can combine this knowledge with these tips to find the most suitable health insurance plan for your portfolio. Remember that it is an essential investment that you are making to safeguard yourself against the financial burden of rising healthcare costs around the country these days!
