Top 10 Things to Consider While Buying Health Insurance in India 2020
How to Buy Insurance?
Generally buying insurance is a task in itself because there are thousands of insurance schemes and companies present in the market and finding the right one can be daunting for us. Then generally comes the insurance adviser but how do we trust them until we understand the insurance Jargon ourselves. So don’t worry I have got you covered. After reading post and keeping these things in mind while buying insurance will help you buying the insurance next time.
In simple words insurance is a financial product that is used as financial protection against the possible eventuality. Its transfer of risk to somebody else in exchange for money termed as premium.
Insurance should always be viewed as a life protection product rather than the investment product, insurance is not made for investing, while most of the time its viewed as an investment rather than financial protection product which is a major misconception in India.
Get an Insurance for yourself even you have company insurance
Generally, the cover provided by the firm holds until your associated with them, if under circumstances you are laid off then you are no longer under the companies insurance coverage and if any circumstances occur that will directly take hit into your investments
How much does one Need while Buying an Insurance
Well this generally depends upon factors like the area of living, types of Hospital one visits and types of room. But Let go on thumb rule of 3 lakh to 3.5 lakhs cover for smaller town & less posh facilities and 15-16 lakhs for metro cities with all the sophisticated facilities present in the Hospitals. While for the Families should opt for the “Family floaters” that allows the insurance cover to be utilized by whichever family member whenever needed which is covered in that insurance
Things to Consider While Buying Insurance
- Price: This is an important point while buying insurance, because this can impact your saving portfolio, thus compare the price of the insurance with the rest of the insurance present in the market also the premium price increases with the time you age. If you are buying from an agent always ask for the ten-year difference. Don’t get intimidated by their sales pitches.E.g.: if your 30 ask for the price when sold at 40 years, and so on.
- No term mentioned as “Co-Pay “ This refers to that we agree to pay a certain percentage of the amount of the bill to share the cost with an insurance company. E.g: if your co-payment is 20 % of the bill total bill cost if you end up having the Hospitalization bill of 1 lakh then you have to pay 20,000 and rest 80,000 will be paid by the insurance company. Always look for this term in the terms & condition when buying insurance.
- “Pre-Existing Disease Clause” If you have any diseases already when you take the insurance the company will not cover those diseases in the insurance. Rules from Insurance Regulatory & Development Authority of India (IRDAI) allow the company to refuse to pay for any treatment-related for the condition or ailment that one was diagnosed when s/he took the insurance for 4 years. Thus is better to check the waiting period while selecting the insurance
- “Diseases Waiting Period” Insurance companies have a waiting period of 30 days to ninety days in which they will not pay any claim that happens in the middle during this tenure. Look for the insurance that does not have a waiting period clause under the terms & condition of coverage in the insurance
- “Sub-Limits” Clause” A sub-limiter is a limitation clause that the company will payout for the specific things. Generally based on room rents in Hospitals. The Term may mention as the maximum amount that the company is going to pay or type accommodation covered under its coverage. You should pay close to this or you may end up paying if you take the room which is higher than mentioned in the term of insurance.
- “Exclusions” The terms of insurance will list diseases & conditions that are generally not covered in the coverage of the policy these can be included from dental treatment to cosmetic surgery. It is always better to be aware of which all conditions are not covered in the insurance.
- “Cost Before and after Hospitalization the Policy will Cover”– you can claim the doctor fees, medicines, Diagnostics upon the hospitalization for three months afterward.Then checking in these claim costs and exact amount and time the insurance will cover.
- “List of Day-Care Procedure that doesn’t need you to stay twenty-four hours in a hospital any more” Some procedures do not require you to stay in hospital twenty-four hours, like cataract surgery and are treated as” Day-care” procedure. Check For the details of daycare how much will be covered and how long you need to stay for the claim to be made
- “No- Claim Feature”When you do not claim in a year, you will be rewarded by the insurance company by giving away a “No- Claim” bonus (NCB). Usually done by raising the cover by 10% -15% for the same cover. E.g: if your cover is of 3 lakhs and the premium is 5,000 and if you have a claim-free year then you get a cover of 3.3 Lakhs for the same premium.
- “Claims made”The one important point to understand is the claims made meaning that how much the insurer pays up? How is the easy the process for claim and time taken to complete the claim process/
- “How many claims the company has settled” Ask this question to the agent before buying the insurance. Look at claim-complaint data and look for a policy that has less than thirty complaints on every 10,000 claims made. The important point is how many people have made claim then how many went on to complain
Initially finding the right insurance may seem like a daunting task but I hope the above-mentioned pointer made you confident and made buying insurance an easy take overall.
It always about the right knowledge from the right source that makes buying any product not only insurance a simplified task.