Health Insurance Policy: Why, Which & How?
Table Content
Health Insurance Policy: Why
The skyrocketing medical care cost has made health insurance policy a key financial product for every individual. It provides you coverage against unexpected medical expenses caused by any illness or accident. At present, even a small surgery or accident can result in a critical financial crisis. In a country like India, where the majority of the population is in the lower-income group, such incidents proved to be a nightmare for them.
According to a report, about 16% of Indians of the lower-income groups go below the poverty line (BPL) due to expenses incurred in health care. “Most Indians compelled to borrow from lender or relatives to meet the high medical bills”, the report says.
But insurance products are a bit complex, you to educate yourself in order to pick the right plan out of numerous available in the market. Never treat insurance products as tax-saving instruments.
There are a few things that need to be considered while you buy a health insurance policy for you and your family.
Things Keep in Mind
- First, you analyze your insurance needs; you can seek the help of an insurance adviser or a financial planner.
- Can perform thorough research over the internet to choose a best-suited plan, sum assured, benefits offered, and premium rate.
- In order to choose a plan, compare various plans and their offerings such as coverage and exclusion parts of the policy.
- Take a policy that fulfills your needs, don’t over-buy; it would lead to a higher premium.
- Don’t buy coverage you don’t require such as if you are unmarried or don’t need children, don’t take a policy with maternity benefit. A policy with maternity coverage costs significantly high.
- Your health shape is an important factor that determines your health insurance premium, so try to be healthy.
- Most all insurers offer significant discounts on premiums for a person who doesn’t smoke. So quitting smoking will result in fewer premiums.
- Buy separate policies for your parents/in-laws; as premium is determined on the senior-most members of the insured. Two separate policies will be cheaper than one bought for the whole family.
- Buy a health insurance plan at an early age as age is another main factor on which premium is calculated.
- Choose an insurer that has the maximum claim-settlement ratio.
- Here, through an illustration, I’m trying to make you understand about two best health insurance policies present in the market.
Premium rates are for 30 years old Male+Spouse+1 Children, Non-smoker/Non-tobacco, Policy Term- 1 Year, and Rs.4 lacs Sum Assured.
| Key Features/Plans | Care | HDFC ERGO Health-Easy Health Floater Standard |
|---|---|---|
| Premium | Rs. 8,455/ annum | Rs. 9,460 / annum |
| Waiting period for Pre-existing diseases | 4 years | 3 years |
| Maternity Benefits | Not Covered | Not Covered |
| Room-rent Capping | – | – |
| OPD Coverage | Not Covered | Not Covered |
| Pre-hospitalization | 30 days | 60 days |
| Post-hospitalization | 60 days | 90 days |
| Daily-cash Benefit | Rs 500/day | For shared accommodation Rs. 500 (Max. up to Rs. 3000) |
| Day-care procedure | 170 days | 144 days |
| Organ donor cover | Rs. 50,000 | Covered |
| Emergency Ambulance | Rs. 1,500 | Rs. 2,000 |
| Free health check-up | Annual | Rs. 4,000 after 4 claim-free years |
| No-claim benefits | Increment of SA by Rs. 2 lacs | Increment of SA by Rs. 4 lacs |
| Claim Settlement Ratio of The Insurer | 65.59% | 79.92% |
*Note: Above data is for illustration purposes only. The actual premiums and benefits may vary.
Health Insurance Policy: Which
In the above illustration, you can clearly see that key features and benefits offered by HDFC ERGO Health are richer than the plan of Care Health Insurance Company offers. But there is the difference of Rs. 1,000 in premium rate. But considering the wide range of coverage offered by HDFC ERGO HealthEasy Health Floater Standard, this excess of premium is worth paying. The only concern with HDFC ERGO is its miserable claim settlement ratio.
Health Insurance Policy: How
Nowadays health policy provides some best service that people need ever, with the every New Year diseases are grooming and growing too. The way the medical cost is raising day by day it’s hard to get treatment in a private hospital; in such a situation, health policy will help to provide you the best and easy service that you can’t afford. We are growing up in such an environment where disease moves along with us, in today’s time in a city like Delhi, no one gets healthy air to breathe and the pollution is enough to make you sick.
Health policy is a way to get rid of most diseases, just because they also cover pre-existing diseases. Buying a health policy means you are buying a health guard for yourself and your family too, and the health policy is dedicated to you just like a security guard is dedicated to his property. In recent times, India has moved towards digitization in a complete manner and it has benefited from big companies to common people. In today’s time, you can also buy health policies online and you do not have to work hard to buy a policy, you can buy it sitting at home. It was a matter of yesterday that it took 3-4 days to go to the insurance company’s office and buy the policy.
