Having a health insurance plan is one of an integral part of one’s financial journey. Several young adults or who have just started working buys health plan to either ‘save tax’ or buy as some of their friends or family members have recommended them to buy. We come across many people who don’t buy health insurance because they are in the pink of health. But buying health insurance should not be just remaining to save tax or get small insurance cover. One should buy health insurance to get proper cover according to their needs and which is best suited for them.
There are several points for beginners to look while buying health insurance. But first and foremost is choosing the right amount for health insurance. Apart from that, one has to also look at the cashless facility, pre and post hospitalization expenses and finally exclusions. The need for adequate health insurance is increasingly becoming important and so is choosing the right health insurance plan.
In India medical inflation is at 15-20% much above general inflation level-which simply means that you can’t buy lower sum assured for health insurance plans. For people in their early 20s and 30s should have health insurance cover of at least Rs 10 lakh.
Apart from choosing the right amount for health insurance plans, one should also look at other parameters like co-payments and limits, network hospital coverage, no claim bonus and restoration benefits while buying the policy.
One should look at policies that may offer a cumulative bonus wherein for every claim-free year, the sum assured is increased by a certain percentage at the time of renewal subject to a maximum percentage. In case of a claim, the cumulative bonus will be reduced by a certain percentage at the next renewal.
A policyholder should also look at sub-limits which refers to capping the reimbursement limit under some of the cost-heads in health insurance. Also, the most important part to look in health insurance is exclusions. Typically, exclusions in health plans are pre-existing medical conditions, cosmetic treatments, injuries caused due to the suicide attempts among others.
If some if buying standalone health insurance policies, they can also opt for add-on’s or riders. If someone is having a corporate health plan of lower sum assured, they should also have a personal health insurance plan for themselves and their family. In case they leave the job and emergency arises they can use the personal policy.
Finally, one should disclose each and every detail in a fair manner. It is always better to give complete right information while buying the policy. If health information is not given correctly there are chances of claims rejections. A policyholder who is buying online health policies should compare the premiums and other features from various online portals and make an informed decision of choosing the right policy.
By: Mr. Rakesh Goyal, Director, Probus Insurance, an Insurtech Broking Company.
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