Awareness about Health Insurance Policy & Key Points

We often miss the importance of having proper health insurance. One of the main reasons is not having awareness and proper information.

Moreover, if you are having health insurance covered under your company's Group Health Insurance policy cover of your job, what happens if you leave the job or laid off or when you retire.

There are few mental myths also which stops us from taking this important step of our life -

1. Investing money regularly but the fruit of which we don’t utilize often:

- True that the amount regularly invested in health insurance doesn't give us an assured return but taking this small step can save you from spending a lot of life long earned money in case of an unforeseen incident in life where you or your near dear one needs to be hospitalized.

As the price of health care goes up day by day, one hospitalization can take away a big savings of your life long earnings.

Hence a small regular investment with which you can cover yourself and your near and dear one without spending most of your savings in time of utmost need like hospitalization can be beneficial.

2. I am young - so why I need health insurance:

It’s better to take health insurance when you are young as you pay less premium and get more benefits as you grow old. This habit of investing small in health insurance can provide a huge dividend in adverse times and critical needs.

So think of it, think about your savings and future and invest in self wisely.

Few pointers to take care before choosing any health insurance policy -

The Internet provides a lot of information to analyze, understand and choose the best one which suits us.

Few Key Points to understand and be aware before choosing any health insurance policy:

1. CoPay - Copayments or Co Pay is a form of cost sharing which can exist under many health insurance plans. Cost sharing is the portion of hospitalized treatment cost covered by you out of your pocket.

Look for an insurance provider who gives you 100% no CoPay so that you don’t have to share expenses from your pocket.

2. Top-up on Claims - this is the feature with which you can claim top up expenses. Suppose you or your near one gets hospitalized and the company provides the claimed sum amount for your treatment suppose 5 lakh but after a couple of months you need to be treated in hospital and in this case does your insurance provides you facility to claim that amount too in the same year?

Few insurance companies provide Free Refill of Cover. Look for that.

3. Room Rent Capping - Few insurance providers give you a percentage only like 3% or 10% of the room rent under your policy.

Look for an insurance company which has no room rent capping i.e. they cover complete room rent expenses under the policy you have taken.

4. Cashless Hospitals - Always go for an insurance company which provides cashless hospitalization and check in internet google map how many hospitals the insurance provider is tied up to provide cashless hospitalization so that you don’t have to pay a single amount from your pocket.

5. Pre-existing Diseases - look for this important factor. Every insurance provider gives information on the waiting period for existing diseases.

This factor depends on age. For example if your age is less than 40 years, in this case the waiting period for pre existing disease coverage will be 1 year and if you are above 40 years, the waiting period can be 1-3 years for pre existing diseases. This can vary from insurance company provider to provider.

6. Claim Settlement Ratio - this is an important factor to look for before choosing a health insurance policy. Go for those insurance providers whose claim settlement ratio is more than 97%.

7. Free Health Check-up and Free online doctor consultation - look for insurance company providers who are giving such benefits. These are not compulsory but having these benefits can help a lot for the money you are investing.

Think and act wisely.