Health is wealth, isn’t this true? Well, the answer is yes. Health is the priority of every individual and so is the selection of a good health insurance company. It is often quite challenging to choose among so many medical insurance options provided by different companies. So, how would you take a decision? Well, here are some tips that can help you in choosing a good health insurance plan.
Health Insurance Provider
Health Insurance Company
Health insurance is provided by a host of general insurance as well as life insurance companies. It is important to compare the health insurance companies on different parameters like hospital network coverage, company’s profile, working team etc. before choosing the medical insurance plan.
Caps and sub-limits
Caps and sub-limits often impose an additional cost on the insurer. Insurance plans impose restrictions on activation of certain facilities e.g. providing child care treatments, hospitalization, etc. after a certain time period. Apart from caps, there are sub-limits applied to different policies. These sub-limits often relate to room tariff, per day expenses, etc. Hence, a policy with least caps and sub-limits is an ideal choice.
Different medical policies are available for different family sizes. If you are an individual, you can opt for personal medical insurance whereas married individuals with kids can go for family floater health insurance plans that provide health coverage for the entire family. Family floater plans that cover maternity costs are more economical.
Cashless Hospital Network
Insurance companies have a tie-up with hospitals. It is best to check the hospitals with respect to reputation, distance from your home, specialty and the most important being a cashless facility. The insurance company with a larger number of cashless hospitals in its network would always be a better choice. There is often cash crunch in the times of medical crisis and a hospital providing cashless facility serves as a boon.
Premium vis-à-vis Sum assured
The most important aspect to be considered in any investment is the cost compared to benefits. Sum assured is the guaranteed coverage that you get in a policy. The premium of policies varies according to the sum assured and benefits provided. Hence, premium and sum assured of medical policies with the same kind of benefits should be compared before selecting one.
Claim Settlement Ratio
Claim settlement ratio is the ratio of claims settled over total claims received. This criterion is helpful in assessing the credibility of the company. You should always choose a company with a high claim settlement ratio to avoid unnecessary harassment in future.
Medical policies are often annual contracts with a pre-determined age i.e. policies are renewable every year but only up to a certain age. However, you need a policy more at an older age. Hence, you should choose a health insurance plan which is renewable up to the age of seventy or eighty years.
No Claim Bonus
It is very important to understand the term “No Claim Bonus”. No claim bonus is a benefit that you can enjoy for a claim free year which means that if no claim has been made during the policy period, the insurance company provides an additional or enhanced sum insured for the next year at the time of renewal of the policy. This bonus is generally provided as a percentage of sum insured. So, you must go through the features and opt for a policy that provides maximum no claim bonus.
People often overlook this feature in the policy document. Some of the policies exclude certain diseases like Cataract, Cancer, AIDS, Ulcer, Joint-replacement, maternity costs or rare diseases. Some policies cover treatment for a pre-existing disease after a certain period of time. You should consider policies with fewer exclusions and restrictions.
Co-payment clause in a policy requires the insured to bear a certain percentage of the medical expense out of his own pocket. This percentage varies from policy to policy. A policy without any co-payment clause or a minimal co-payment percentage is beneficial.
The Bottom Line
To conclude, looking at the vast list of health insurance companies in India, it is important to understand and analyze the above-mentioned features and compare different policies on these parameters to take the right decision for selecting a policy according to your requirements.