Tips To Consider Before Buying Health Insurance Policy

Posted by Dipti Goel on June 5th, 2019

Modern day treatments, hospitalisation expenses, medicines, etc. have become so exorbitant that investing in a health insurance policy has become the need of the hour. Deciding to buy health insurance policy for yourself and your family can offer them the best chance of getting well in case of a medical emergency. However, finding your way through to the best medical policy online can be a tedious process as there are multiple health insurance plans available today. Plus, the technical jargon used by insurance companies in the policy wordings can add to the confusion.

This article presents some tips you may want to consider before buying a health cover online:

• Waiting Period: Most insurance companies have a waiting period for pre-existing diseases. During this period, if you were experiencing from any health-related ailment, you could be denied medical coverage. Waiting tenure can range from two to five years. So, it is essential to keep a tab on this number when you purchase a health policy. Purchasing a medical policy at a young age can reduce your chances of having to make a claim during the waiting period.

• Claim Process: Before buying a medical policy online, there are two factors you may want to a look at – claim settlement time and claim settlement ratio. The simpler the claim process and faster the settlement time, the better it is for the policyholder. Try to spend some time knowing the claim settlement ratio of the insurer as it can help you take the right decision. A good claim settlement ratio indicates that the insurance company is doing an excellent job with genuine claims.

• Co-payment: When you buy a health insurance policy with a co-payment clause, it mandates that you bear a pre-decided percent of the claim amount while the rest gets settled by the insurance company. It is beneficial if you read the fine print of the policy and understand the medical coverage that comes with such a co-payment clause as it is possible that such a plan may not provide the specific coverage you need.

• Free Medical Check-up: Try to look for a medical policy offering free medical check-up for the insured. However, the premiums are not affected when policies undergo renewal. Also, after a particular age, everyone requires regular health check-ups through various tests. It would be a bonus if the medical policy offers preventive health check-up facility every year.

• Selecting the Right Insurance Amount: Given that medical costs are touching the roof, it is wise to buy health insurance policy with an optimal sum insured. It would help if you considered the add-ons to the policy too as they can affect the premium you ultimately pay. An ideal policy would be one where the premiums are not too high and the medical coverage offered is adequate during an emergency.

• Pre/Post Hospitalisation: It is wise to check whether the medical policy online covers hospitalisation expenses before, during and after the medical treatment. These expenses include ambulance expenses, doctor’s consultation fees, medicine costs, follow-up expenses, etc. Choosing a medical plan, which covers such aspects, ensures you don’t face any financial crunch during a medical emergency.

• Maternity Benefits: To manage rising medical costs associated with pregnancy, it is essential to check whether the medical policy online offers maternity coverage. Before you buy health insurance policy, here are four points you can consider:

-       Ascertain the waiting period applicable for claiming maternity expenses

-       Consider the sub-limit

-       Check if there are any specific exclusions and inclusions related to the maternity cover

-       See if the medical plan provides coverage for outpatient expenses

• Network Hospitals: Before you buy health insurance policy, it is a good idea to know the cashless network of hospitals with the insurance company. This helps the patient and family members to do away with complicated paperwork at the time of discharge and also not worry about arranging funds.

• Cumulative Bonus: Most insurance companies allow a cumulative bonus or No Claim Bonus (NCB) when the insured does not make any claims in the previous policy year. This bonus can be accumulated year after year resulting in a discount on payable health insurance premiums or an increase in the sum assured or, or sometimes a combination of both.

• Lifetime Renewal: You can look for health insurance policies which offer lifetime renewability. If you are planning to include your elderly parents in your health insurance policy, lifetime renewability can be an extremely crucial factor to consider.

Conclusion

Buying adequate health insurance coverage can neutralise the healthcare-related risks and provide medical safety for you and your family. You may consider the above points before buying an online medical policy.