Health insurance policies can be life-saviour in times of need. However, it is essential to choose the best policy to make sure it gives you the right coverage. Keep reading to know about four points that you need to pay attention to while buying a health insurance policy.
Thanks to rising healthcare costs, buying a comprehensive medical insurance policy has become a necessity. However, with so many insurance companies luring people with such a wide variety of options, it can become rather confusing to choose the best healthcare policy.Let’s delve deeper into the four steps that you need to take to buy the best policy.
1. Choose the Right Type of Policy
One of the first decisions that you need to make while buying a health plan is the type of policy you will need. There are two types of policy to choose from:
- Individual Policy:This kind of policy covers a single person in the policy. You may want to consider this type of policy if you want coverage for only one person in the family.
- Family Floater Policy: This kind of policy covers all the members of the family under one single policy. You can go for this type if you want to cover yourself, your spouse, your children and your dependent parents under a single policy. The sum insured is shared by all the members of the family.
2. Choose the Best Insurance Company
The next step is to zero-in on your preferred insurance company. This is because almost all the companies offer similar coverages. However, for your policy to be effective, it must be bought from a reliable insurance company. Here are a few factors to consider when shortlisting the best companies.
- The Credibility of the Company: This is as important as the policy itself. Look for a company that has at least a few years of experience behind it.
- Claim settlement Ratio:Look for a company that has a good claim settlement ratio. You don’t want to be stuck with a company that is notorious for rejecting claims at the times of need.
- Cashless Network: The cashless network of the company is another important factor that you must consider. Look for a company that has tie-ups with both big and small hospitals in your city, in your locality, etc.
3. Choose the Right Coverage
When buying or comparing a health insurance policy, make sure you pay attention to the coverage of the policy. Here are a few important factors to consider when choosing the right coverage.
- Total Sun Insured: This is the maximum amount the insurance company will pay for your medical expenses as per the set terms and conditions. Make sure you select a coverage amount that is going to be good enough to support you in times of need. However, do note, that higher the sum insured, higher the premium.
- Room Rent: While every insurance policy has the sum insured limit, there are sub-limits too. One of the important sub-limits is room rent. This is the maximum amount the insurance company will pay for a room depending on the category you choose. Also, most policies set a different room rent limit for ICU rooms.
- Co-payment: This is the portion of the medical expense that the insured agrees to pay in case of hospitalisation. This may range between 0-20% depending on the conditions you choose. Higher the co-pay, lower the premium.
- Pre and Post Hospitalisation Expenses: Do check if the policy covers pre-hospitalisation and post-hospitalisation expense. This can be an essential feature in case the recovery period is long.
4. Check Exclusions and Waiting Period
Last, you will have to pay attention to the exclusions of the policy. Check for pre-existing conditions that are not covered. Most policies specify a waiting period (ranging between 2-5 years) until your policy covers the diseases. You can either buy add-ons to cover such diseases if your policy permits or wait for the waiting period to get over.
Buying the Best Health Insurance Policy
Once you have crossed these vital steps, buying the best Mediclaim policy is simple and straightforward. Compare the policies you have shortlisted, and choose the one that best suits your needs.