A medical emergency can crop up at any juncture of life, and it requires immediate attention and access to finances. Unfortunately, the colossal expenses attached to medical extremity have made it arduous for individuals to go ahead with the necessary treatment.
In this respect, availing of medical insurance plans will safeguard one's financial future and provide them with financial coverage. Hospitalisation cost is financially strenuous and exhausts one's lifetime savings; hence buying the best health insurance plan will back for pre-and post-hospitalisation costs and secure one from draining their finances.
Factors to consider while availing of a health insurance
Here are the following factors that an individual must take into consideration before availing of health insurance in India:
- Policy premium: As we know, the higher the insured amount, the higher the policy premium. Therefore, applicants should go for a premium amount that will be easy and affordable and offer adequate health insurance coverage.
- Sum insured: The insured amount is another parameter that the applicant must factor in while buying medical insurance plans. Individuals should opt for an optimum amount to effectively suffice the colossal medical expenses. Hence, a proposer must consider prevailing health conditions and potential risks associated with an ailment and then decide on a suitable sum assured.
- Income status: An insurance provider scrutinises an applicant's annual income before deciding on the coverage amount. Hence, keep the required documents handy.
- Waiting period
: Applicants should be well versed with the waiting period, which is different for every disease and accordingly buy health insurance coverage in India. The waiting period is pertinent to maternity advantages and pre-existing ailments.
- Proposer's age:: It is generally recommended to avail of a health insurance coverduring theinitial stage of life. Applying for a medical insurance policy early in life will help one fetch affordable premium rates. Furthermore, one can finish off the waiting period and secure the health of themselves and their family.
- The abundance of network hospitals : This is another significant factor one should consider before availingof health insurance coverage. Individuals should consider health insurance plans which encompass wider network hospitals. Ample network hospitals enable faster access to cashless treatments.
How much health insurance do you need?
Besides gaining insight regarding the factors to keep in mind while purchasing a health insurance policy, applicants should also have a well-rounded idea about the amount of medical coverage a proposer and their family would require:
- Medical insurance cover for an individual:If proposers are in their mid or late 20s, they can avail of a health plan with OPD coverage as the chance of one suffering from any ailment at a younger age is comparatively less. Under the plan, individuals can increase their coverage as per their age and inflation, thereby covering one from any medical extremity that may come their way.
- Medical insurance cover for family: Mediclaim policy for family offers coverage for the entire family, helping them meet their healthcare expenses. Furthermore, if applicants have the responsibility of their spouse and children, they can go for a family floater plan, get sufficient coverage, and receive financial aid during medical emergencies.
- Medical insurance cover for parents : If the age of the applicant's parents is over 60 years, they can opt for an additional parent's health insurance plan or a similar add-on service. Moreover, this will aid individuals to solve an array of financial challenges if they fall sick.
What does being underinsured mean?
Underinsured means individuals do not have adequate insurance cover to meet their healthcare needs, thereby facing financial hardship. There are specific scenarios under which an individual remains underinsured. This situation arises if the individual has missed the terms and conditions mentioned in the policy, which mentions any deductions applicable or waiting period on the policy bought.
- Having inadequate coverage
One has applied for a good health insurancepolicy, but while filing a claim, he/she came to know that this policy does not extend coverage for specific diseases. Such situations crop up due to the dearth of research. Hence, it is imperative that proposers go through the ins and outs of the medical insurance policy before availing of it.
- Not factoring in future medical emergencies properly: An individual can remain underinsured even after availing of the right health policy in India. This situation arises due to the proposer's inaccurate evaluation of future medical requirements. When this scenario occurs, they do not have adequate coverage to manage their finances.
Furthermore, there are scenarios when policyholders opt for a health insurance policy with a low sum insured to keep the insurance premium minimal. It adversely affects their financial well-being in the long run.
How can you avoid the risks of being underinsured?
Being underinsured keeps an individual away from getting financial assistance during tiring times. Hence, individuals must ensure that they have opted for an appropriate medical insurance policy and look at the following pointers to dodge the risks of being underinsured.
- Applicants should be well versed with the policy exclusions and other conditions while buying a health insurance policy.
- Assessment of present financial status, family medical history, etc., before availing of a health insurance planis equally essential.
- Proposers should opt for an adequate insured amount to meet any medical expenses. They can opt for a policy that offers required benefits from leading insurance aggregators like Bajaj Finserv, which offers policies from a wide range of insurance companies.
- Furthermore, if policyholders face some issues or have queries, they must reach out to the insurer and solve them.
Also, individuals can go for a Mediclaim policy to receive financial support during a medical emergency.
However, one needs to know the particularities related to availing of a Mediclaimpolicy to avoid last-minute turmoil.
To conclude, medical insurance plans act as a saviour during a health crisis. It provides required financial assistance to manage the cost of high-end medical care. However, proposers need to know how much health insurance they need to manage hospitalisation costs conveniently.
With each passing year, where other insurance premiums tend to rise, car and bike insurance have a beneficial NCB, bringing down premium amounts.
No Claim Bonus is simply a perk given to policyholders for not making a claim in previous years. NCB in motor insurance can fetch up to a 20-50% discount on the payable premium amount by maintaining a claim-free record. NCB is not related to the make or age of the vehicle but solely on the claim record of the policyholder.
While purchasing a comprehensive motor insurance policy, you are generally not eligible for NCB unless in the case of NCB transfer. The policyholder will be eligible for NCB on the first renewal of the motor insurance policy, starting from 20%. This is applicable only if no claims have been made in the preceding years. The discount increases with every claim-free year up to a maximum of 50% at the end of five claim-free years.