How Can Your Health Insurance Policy Profit You

“These days, people are paying more attention to their health because of the deadly outbreak of the COVID-19. People have realized that a critical illness will add mental agony and drain out their hard-earned money. Those who contemplate “should we buy health insurance” are now purchasing comprehensive health policies to protect their health and finances from expenses arising from illnesses. During this COVID-19 pandemic, many people lost their jobs or were bound to live with compromised salaries. This financial crisis due to COVID-19 could be fatal to many if they didn’t purchase health insurance policies on time. A novice buyer should choose the right insurance policy to enjoy adequate coverage and benefits.

Here we mention certain things to know before buying health insurance to make your health policy profitable to you.

Things to Consider when Buying an Insurance Policy

• Cover amount
• Cover existing disease
• Payment limit
• Co-payment clause
• Discount on premium
• Room rent clause
• The waiting period clause 
• Cashless Hospitalization Benefits
• No-Claim-Bonus/No-Claim-Discount
• Preventive health check-up facility 

• Cover amount

Always purchase a critical insurance policy where the cover amount is on the higher side. The markets are flooded with insurance policies that offer low cover amounts for critical illnesses. Every policy buyer should be aware of this before making any commitment. The customers should carefully go through all policy documents that include the list of critical illnesses covered.

• Cover existing disease

Before investing a single penny, customers should ask insurers whether their selected policies will cover pre-existing diseases or not. Some policies may cover pre-existing diseases of the insured policyholder, but some may not. Therefore, it would be wise to purchase a policy that covers pre-existing ailments of the subscriber and comes with a short waiting period.

• Payment limit

Always go for health insurance policies that will cover entire pre and post-hospitalization expenditures. The insurer needs to pay the room or ICU expenses for most available policies after a specific limit. Before purchasing a policy, you must be aware of this as a customer.

• Co-payment clause

Co-payment is an imperative clause for all health insurance policies. Co-payment indicates the amount that an insured policyholder needs to pay from his/her side for insured services. In most cases, this amount is pre-decided. Most health insurance policies that are available in the market for senior citizens come up with a co-payment clause. In such a situation, the customer should prudently choose an insurance policy where he/she needs to pay the least or no co-payment. But for this, the customer needs to pay an additional premium.

• Discount on premium

Many health insurance policies are offering their customers a discount for buying a long-term policy. The maximum policy term can be three years. So, you can enjoy this discount by paying the premium just once.

• Room rent clause

This is another most imperative thing that a policyholder should look for in his/her policy terms. Health insurance companies usually pay 1% and 2% of the sum insured for room rent and ICU charges, respectively. So, if the insured policyholder selects a room that surpasses the sub-limit for room rent in the policy, then the policyholder needs to pay the remaining balance amount from his/her side. This means a policyholder should wisely handpick a room for his treatment that gets entirely covered under the policy plan.

• The waiting period clause 

Before making a purchase decision, you must be aware of the waiting period clause of the health insurance policy. Your insurance company won’t accept any claim for pre-existing ailments or specific diseases during this waiting period. The waiting period can be between 24 months and 48 months and varies from company to company. You can only raise claims and enjoy your policy benefits for pre-existing diseases once this period is over.

This waiting period applies to all pre-existing illnesses like thyroid, blood pressure, diabetes, etc., that you should know before purchasing the policy. It is also valid for specific treatments and illnesses like arthritis, varicose veins, cataracts, etc. You must compare and select a plan that comes with a minimum waiting period so that you can avail of your policy benefits during the time of health emergencies.

• Cashless Hospitalization Benefits

Most health insurers are partnered with network hospitals where the insured policyholders can avail themselves of cashless treatment. This saves you from financial burden and eliminates the need for paperwork required during the time of admission and claim initiation process. In this case, your insurance company settles the bill with your hospital directly.

Under a cashless facility, neither you need to arrange funds nor initiate any claim reimbursement. Before purchasing a policy, ask your insurer regarding the list of empaneled hospitals so that you can find out about network hospitals in your area.

• No-Claim-Bonus/No-Claim-Discount

NCB implies the bonus offered by the insurance company for a policy year that you have not initiated a claim. Your coverage amount is enhanced during the time of policy renewals for the same premium.

But, most health insurers specify the NCB limit. So, your increase in the sum insured depends on the pre-decided limit by the insurer.

• Preventive health check-up facility 

Because of medical inflation, the costs of healthcare check-ups for cardiovascular diseases, cancer screenings, MRIs, etc., are rising rapidly. When your health insurer bears the costs of health check-ups, why not do that? This will undoubtedly save a lot of money for you. Choose a medical insurance policy that offers annual preventive health check-ups and other benefits.

The above write-up must have given you adequate information regarding how to choose health insurance to protect your health and savings. Now, you know what parameters you need to consider while buying the best health insurance for yourself and your loved ones. Compare various policy plans and choose the best one that appears profitable to you.