Health insurance is a contract wherein the insurance company commits to ensuring payment for medical costs if the insured becomes ill or has an accident that necessitates hospitalization. Typically, insurance companies partner with top hospitals to offer cashless care to their insured customers. If the insurance provider does not have a tie-up with the hospital, they compensate the insured for their out-of-pocket costs. The government also encourages the purchase of health insurance by offering an income tax deduction.
Significance of Health Insurance
It’s crucial to have health insurance for you and your family because, especially in the private sector, medical care is expensive. Being hospitalized can break the bank and ruin your finances. Paying a small annual premium would alleviate your concern in the event of medical crises and allow you to avoid all of this. A good health insurance plan will often pay for costs associated with doctor visits, medical tests, ambulance rides, hospital stays, and, to a limited extent, post-hospitalization recovery costs.
In India, many companies sell health insurance plans, thus choosing one might be very difficult. The misunderstanding is amplified by intimidating jargon that is sometimes referred to as policy wordings and the plethora of available plans. Even though choosing a health insurance plan can be difficult, there are a few things to keep in mind.
Below are the 7 things to consider before purchasing health insurance:
It is beneficial for the insured if the claims process is straightforward, and claims are settled quickly. Therefore, when choosing a policy, these two are crucial considerations. One should also search for an advantage that offers good customer service.
Family Health Insurance
It is important to take into account the ages of your family members when selecting health insurance plans. If they have any current illnesses, think about those as well as the family’s medical history before purchasing insurance. Additionally, before purchasing a health insurance plan, ask your family members whether they have any pre-existing conditions.
Determine Appropriate Insurance Amount
One should carefully choose the amount when choosing a health insurance plan because it will cover medical costs for a full year. Consider your age; the less insurance you require, the younger you are. When determining if a premium is affordable, one should also consider their income levels. The add-ons are a crucial component as well because they affect premium costs. Make sure you selected a sum insured that will not be insufficient in the event of an emergency and whose premium is not too high.
Always check with the insurance provider about a cashless network of hospitals. The hospitals in the network provide a cashless alternative for medical emergencies or hospital stays; the insurer pays the medical bills straight to the insurer. Choose insurance companies with a large network of hospitals, which has more than 5000 hospitals in its network.
Documents Required to Purchase Health Insurance Policy
Following are the documents you must submit, including:
Age Proof: Birth certificate, driver’s license, voter ID, grade report from 10th or 12th standards from school, passport, etc.
Identity Proof: Citizenship proof such as a driver’s license, passport, voter ID, PAN card, and Aadhar card.
Address Proof: Statement of the permanent address on a phone bill, utility bill, ration card, driver’s license, or passport.
Some programs demand a physical examination (usually for elder people above the age of 45 years)
Types of Health Insurance
There are several health insurance benefits, but to avail them you must choose the right one. Following are the types of health insurance that you can consider:
Individual Health Insurance
The insured person’s medical costs and hospitalization costs are covered by this policy. This policy’s premium is calculated based on the insured’s age.
Family Health Insurance Plan
With this coverage, a person can cover all their family members for a variety of ailments under a single policy. Each family member may use the fixed sum assured under the family health plan, which is available to all family members or just one person.
Senior Citizen Health Insurance Plan
This coverage is intended for seniors or people over 60 and offers protection against health problems as they age.
Critical Illness and Surgery Insurance Plan
This policy is appropriate for the insured who needs medical care for serious conditions like kidney failure, paralysis, cancer, heart attack, etc. The premium for these kinds of policies is expensive due to the significant medical costs associated with these therapies.
Maternity Health Insurance Plan
This insurance plan pays for charges like pre-and postnatal care and newborns’ delivery costs. Up to the time frame specified in the plan, the newborn is likewise protected by this policy. The expense of an ambulance is also covered.
Unit Linked Health Plan
These programs present a special simultaneous insurance and savings option. This policy assists in creating a corpus that can be utilized to pay for expenses that the insurance policy does not cover.
Author Bio: Mithilesh Singh is a writer who specializes in writing content on Finance and Banking subjects. He is a Digital Marketing Consultant, Blogger, and Co-Founder of Planet Nursery Live.