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Implications of having health insurance in India

Implications of having health insurance in India

With the medical inflation rates on the rise, failing to avail of the right insurance plan can be financially exhausting. While many still fail to understand the importance of having a health insurance plan, these mediclaim policies are a must-have in your arsenal.

Many reputed insurers extend different insurance policies, such as parents’ health insurance, family floater insurance plan, senior citizens’ health insurance plan, critical illness insurance policy, etc. To decide whether to invest in such plans or not, you need to understand their significance. Read on to find out more.

Importance of health insurance policy

For every individual, purchasing a health insurance plan has become necessary. It extends considerable financial coverage against expenses incurred by unanticipated medical emergencies. Moreover, individuals with older parents must own mediclaim policies to provide the best treatment and protect their finances in any urgent medical emergencies.

Additionally, leading corporate agents like Bajaj Finance Limited offer medical insurance policies for parents that extend extensive financial coverage against medical conditions that may occur with age. Moreover, it comes with attractive features like a cashless facility, annual health check-ups, and more, allowing policyholders to manage their medical expenses efficiently.

To know why a health insurance plan is important in India, read the pointers explained below:

• Lifestyle change

With the rapid lifestyle change, individuals often fail to look after their health and ignore minor signs of ailment that can become more severe in the future. The importance of health insurance can’t be reinforced enough with that in mind. It eases the financial burden by reimbursing the cost of crucial medical tests. Additionally, policyholders also benefit from quality health care facilities at reputed hospitals.

• Rising medical costs

Medical expenses increase every passing year, making it vital to have the safety net of a health insurance plan. Ageing parents are more prone to chronic illnesses and need efficient health care. Therefore, purchasing comprehensive health insurance plans for parents becomes effective, as they cover hospitalisation expenses and offer post-treatment care as well.

• Financial protection

If your parents are senior citizens, it is advisable to purchase a health insurance policy for senior citizens. It will ensure adequate treatment and protect finances for the future. In addition, these plans will allow you to manage emergency medical needs and safeguard your savings efficiently.

ealth insurance providers now also offer various policies focusing on specific diseases or age groups like critical disease health insurance, senior citizens health insurance, etc.

How to select the best parents’ health Insurance plans?

After IRDAI’s regulation changes, senior citizens or individuals looking to purchase medical insurance for their parents can book a policy until 65 years of age. They have also denied the right to decline the renewal of senior citizens’ health insurance policies.

Apart from understanding the importance of health insurance in India, it is essential to compare different health insurance plans for senior citizens by considering the parameters mentioned below:

• Financial coverage

• Ideally, if individuals choose a higher coverage, it is better. However, there is a direct relationship between the premium one needs to pay and the coverage one receives. Some insurance companies also cover more than just hospitalisation expenses in add-on services. Therefore, individuals can choose as per their needs.

• Co-payment facility

Usually, senior citizen health insurance policies come with a co-payment clause. The insured person must pay a specific portion of the claim amount. Moreover, as per IRDAI regulations, 50% of the pre-insurance medical investigation cost should be reimbursed to senior citizens. Therefore, it is better to research thoroughly to find the best deal.

• Network hospitals

Another essential point to check here is the availability of network hospitals. In these hospitals, policyholders can get cashless treatment. Therefore, individuals need to enquire about the cashless associations with different hospitals before finalising a policy purchase.

• Choose adequate sum insured amount

Selecting the accurate sum insured amount under health insurance is easier said than done. Although there is no formula or guide for evaluating the ideal sum insured amount that one needs, it is advisable to consider the inflation in healthcare expenses while choosing the sum insured. Here are some more pointers for you to consider.

• Choose insurance plan as per age - The first point to check while buying a parent’s health insurance plan is the age of concerned individuals. Since with the increasing age, the premium amount also rises, it is ideal to opt for this policy as early as possible.

• Choose as per income - It is wise to purchase a health insurance plan with a sufficient insured sum and affordable premium. As per experts, proposers should always buy a policy with a premium of 2% of their yearly income. However, it depends on individuals’ requirements; thus, they should consider every aspect before finalising.

• Considering the family’s medical history - Policy buyers should choose a higher sum insured if their family has a record of medical illness. It will give them sufficient financial coverage. If any of the said diseases belong to a critical illness category, they should purchase a separate plan or opt for necessary add-on facilities.
To sum up, individuals planning to purchase a parents’ health insurance policy should research the importance of such policies and the factors they need to consider to find the best possible deal.

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