The uncertainty of life can sometimes lead to medical emergencies. In India, health insurance policies are almost a necessity due to rising healthcare costs. It can be confusing to choose the right insurance policy when so many health insurance plans are available. To solve this problem we have created this checklist of the 20 most important things that will hopefully help you in making an informed decision.
Table of Contents
What is health insurance?
Health insurance is a type of insurance that covers the cost of medical care. It helps to pay for expenses related to health care, including hospital stays, doctor visits, prescription medications, and other medical treatments.
Health insurance can be provided through an employer, purchased individually, or obtained through a govt health insurance plan such as Medicare or medicaid health insurance.
How many types of health insurance plans are there?
There are 11 major types of health insurance plans available in India.
Type of health insurance
|Individual health insurance||Individual coverage|
|Family health insurance||Best health insurance for family (self, spouse, children, and parents)|
|Critical illness insurance||Best health insurance plan for funding expensive treatment costs|
|Health insurance for senior citizens||For applicants aged 65 years or over|
|Top up health insurance||When the existing policy’s sum insured is exhausted, this insurance plan can provide you with additional coverage.|
|Hospital daily cash||Best health insurance for covering daily hospital expenses|
|Personal accident insurance||Funding treatment costs in accidental cases.|
|Mediclaim health insurance||Covers in-patient expenses|
|Group health insurance||Best suited as an employee health insurance|
|Disease-specific health insurance||Patients suffering from or at risk of pandemic-related conditions should consider this product|
|ULIPs||It provides the dual benefits of insurance and investment|
What is health insurance no claim bonus?
The no claim bonus in health insurance is the monetary bonus that policyholders get every year for not making any claim. That means if you don’t make any claim during a year you will receive a reward and that reward is known as the no-claim bonus.
What is waiting period in health insurance?
The waiting period in health insurance is the initial waiting period of 30 days during which you can’t make any claim excluding accidental cases.
Why health insurance is important?
The goal of health insurance policy is to protect an individual or family from the high cost of medical care and to ensure that they have access to necessary medical treatments and services. Here are some of the health insurance benefits.
It helps to protect you financially:
Medical bills can be expensive, and without good health insurance, you may have to pay for all of your medical care out of pocket. This can be financially devastating, especially if you have a major medical expense such as a hospital stay. Health insurance helps to cover these costs, protecting you from financial hardship.
It ensures access to medical care:
Without health insurance, you may be unable to afford necessary medical treatments or services. Health insurance helps to ensure that you have access to the medical care you need when you need it.
It helps to keep you healthy:
Regular check-ups and preventive care can help to identify and treat health problems before they become more serious. Health insurance can help to cover the costs of these preventive care services, helping you to stay healthy.
It can provide peace of mind:
One of the major benefits of health insurance is that it provides you with peace of mind, as you will not have to worry about how you will pay for unexpected medical expenses.
20 things to consider before you buy health insurance:
Here is the checklist of 20 things that will help you to get the best health insurance for yourself.
Determine your coverage needs:
Consider factors such as your age, health, family size, and lifestyle when determining how much coverage you need.
Consider your budget:
Health insurance premiums can be expensive, so it’s important to consider how much you can afford to pay each month.
Understand your plan’s coverage:
Make sure you understand what is and is not covered under your plan, including deductibles, copays, and exclusions.
Check for network restrictions:
Some health insurance schemes only cover care received from providers within their network. If you have a specific doctor or hospital you prefer, make sure they are in-network.
Consider your prescription needs:
If you take prescription medications regularly, make sure your plan covers them or has reasonable copays.
Check for out-of-pocket maximums:
Out-of-pocket maximums are the maximum amount of money you have to pay for covered medical expenses in a year. Having a lower out-of-pocket maximum can provide financial protection in the event of a major medical expense.
Look for additional benefits:
Some health insurance policy offer additional benefits such as vision and dental coverage, which can be useful if you need these services.
Check for exclusions and pre-existing conditions:
Some health insurance plans may exclude coverage for certain pre-existing conditions or treatments. Make sure you understand any exclusions that may affect you.
Determine if you are eligible for subsidies:
If you buy health insurance through the health insurance marketplace, you may be eligible for subsidies to help lower your health insurance costs.
It can be helpful to compare health insurance plans to find one that meets your health insurance coverage and budget needs.
Understand your enrollment options:
Health care insurance enrollment periods may be limited, so it’s important to understand when you can enroll in a plan and what options are available to you.
Consider short term health insurance:
If you are between jobs or waiting for coverage to begin, short-term health insurance can provide temporary coverage.
Understand your employer’s benefits:
If you get free health insurance from your employer, make sure you understand your health insurance coverage options and any costs you may be responsible for.
Consider a health savings account:
A health savings account (HSA) is a tax-advantaged savings account that can be used to pay for out-of-pocket medical expenses.
Consider a flexible spending account:
A flexible spending account (FSA) is a tax-advantaged account that can be used to pay for out-of-pocket medical expenses.
Determine if you need additional coverage:
If you are at higher risk for certain health conditions or have a family history of certain diseases, you may want to consider purchasing additional coverage such as critical illness health insurance plan.
Check for exclusions:
Some health insurance plans may exclude coverage for certain treatments or procedures. Make sure you understand any exclusions that may affect you.
Consider a high-deductible health plan:
High-deductible health plans may have lower health insurance premiums, but you will pay more out-of-pocket for medical expenses.
Check the claims process:
It’s important to understand how to file a claim with your health insurance plan and how long it typically takes to process a health insurance claim. You should also check the health insurance claim settlement ratio.
Consider the reputation of the insurance company:
Research the reputation and financial stability of the health insurance company you are considering. A financially stable health insurance agency is more likely to be able to pay out claims when needed.
Most of the policyholders complain about paying huge health insurance monthly premiums and not getting that much coverage. Such things happen when someone does not compare health insurance plans before applying. Therefore it is always important to understand your needs and the ins and outs of health insurance policies to make sure that you have got the best health insurance policy for yourself.
Which health insurance is best?
There are several health care insurance plans available in the market and the best health insurance plan for you would be one that fits your budget and fulfills your requirements.
What is co payment in health insurance?
Co payment in health insurance is a clause under which the insured agrees to pay a certain portion of medical expenses. When a claim is filed, the policyholder typically pays a fixed percentage of the claim amount.
How to claim health insurance?
Every major has their own insurance help desk. You can ask them for a pre-authorization form (you can also download it online). Fill up the form and submit it to the desk. They will help you throughout the health insurance claim process.
What is deductible in health insurance?
The deductible in health insurance is the amount policyholders have to pay before their insurance company starts to pay. Basically, health insurance companies are only liable for claims exceeding deductibles.
What are the 4 types of insurance?
There are four major types of general insurance policies available, they are:
- Motor insurance.
- Health insurance.
- Travel insurance.
- Home insurance.
How to get health insurance without a job?
It is not the status of the job that determines whether you can get health insurance, but the regularity with which you pay premiums. So if you have a steady monthly income, getting health insurance won’t be difficult for you.
How much does health insurance cost?
The average cost of health insurance in India is between Rs.500 to Rs.800 monthly. Although, the amount may vary depending on the health insurance type you have.
How to get affordable health insurance?
You can follow the above-mentioned tips to get the most affordable health insurance for you. Also, if you want to know more about health insurance, then make sure to visit our page.
Disclaimer: I am not a certified financial adviser and this is not financial advice. The purpose of this article is to inform you about financial products and strategies. Consult your financial advisor before making any financial decisions.