Health insurance is an agreement providing medical coverage to an insured person for a fixed premium amount.
A health insurance policy can protect you from high hospitalization costs during medical emergencies. The costs of hospitalization include daycare, ICU charges, and more.
The benefits of your health insurance will vary depending on the type of plan and company you choose.
In addition to this, a health insurance policy will provide tax benefits under the Income Tax Act, 1961.
Interested in buying a health insurance plan? Would you like to compare it before making a purchase?
Definitely! While doing so, here are some important points to keep in mind. For instance, make sure you compare the entire health insurance policy and not just one part of it. You should also compare plans based on the premium, coverage, services, inclusions, exclusions, and claim settlement.
Sounds complicated, doesn’t it? Let’s take a quick look at 15 features helps in comparing a health insurance plan before buying.
Benefits Of Comparing Health Insurance
The following are the common benefits you will gain if you compare a health insurance plan before buying.
The best health insurance policy
Nobody knows your health risks as you do. So, you are in a position to determine what kind of health insurance you need. And, you can purchase the best health policy that you want rather than what the agent wants to sell you.
Value for money
Health insurance is not about buying the least expensive plan. In order to find the right policy for you, it is important to find the right balance between your requirements and the policy’s features.
So, the comparison of health insurance plans can help you find the right policy that meets your health insurance requirements while remaining within your budget.
Peace of mind
The process of comparing health insurance policies involves looking at different plans and reviewing conditions such as room rent, waiting periods, claim processes, etc. So, you can be sure that the final decision you make is based on a concrete analysis tailored to your requirements.
Advantages of Buying Health Insurance Policy:
Cashless Treatment
If you have cashless health insurance, you don’t have to pay 90% of the hospital bill when you get hospitalized.
And, there is no need to carry a lot of hard cash. All you need to do is simply submit your cashless card so the hospital will coordinate with your insurance company and get funds.
Covers hospitalization treatment
Your health insurance policy will cover 90% of your medical expenses if you have been hospitalized for more than 24 hours. Some of these expenses include diagnostic test fees, doctor’s fees, medicine costs, room rent, and even certain surgeries.
Seasonal illness treatment
Health insurance covers seasonal illnesses like dengue, malaria, typhoid, pneumonia, COVID-19, etc. It takes just 30 days to complete the application process. After that, you can receive treatment for any seasonal illness.
Emergency Support
When you have a cashless policy, you do not need to worry about having large amounts of cash in an emergency. Because health insurance policies cover ambulance and emergency hospitalization costs.
Accident Cover
No matter whether the accident occurs inside or outside, your coverage begins at the moment you file a claim. The only requirement is that the accident should require hospitalization. Even so, some policies may cover surgery resulting from an accident hospitalization.
Financial Security
The actual cost of a serious medical emergency can easily deplete your life savings if you don’t have a health insurance policy.
Health insurance not only offers you peace of mind, but also financial security. So, if you have the right health insurance policy, you can afford quality medical treatment without breaking your savings.
15 Features Help In Comparing A Health Insurance Plan Before Buying
Sub-Limits on Room Rent
It is common for some insurance companies to have sub-limits on room rentals. As a result, insurance companies are required to pay a maximum amount for claims. This limit is set at 1% of the insured sum and 2% in cases of ICU expenses.
But some general insurance companies offer health insurance plans that do not have any sub-limits on room rent. This is why such plans are recommended.
Pre-Existing Diseases
The term pre-existing disease refers to diseases that existed before you purchased a medical insurance policy.
This is why health insurance plans have a waiting period rather than provide coverage from day one. There is no possibility of filing a claim during this waiting period. So, it is recommended to select a health insurance policy with a minimum waiting period.
Co-Payment
The term “co-payment” refers to the sharing of costs between the insurance company and the policyholder when a claim is filed. There are two ways to determine the amount of the co-payment; either by percentage or amount.
If you wish to protect your savings, you must choose a health insurance policy without copayments.
Network Hospital
Network hospitals are hospitals that have tie-ups with health insurance companies where insured individuals can receive treatment without paying anything.
This feature provides the benefit of cashless treatment. If your policy does not include this feature, you will be responsible for paying the hospital bills by yourself, and the insurance company will reimburse you later.
So, while choosing a health insurance company, make sure it has a large network of hospitals nearby your home.
Coverage Offered
Insurance coverage and the amount insured determine the types of illnesses and operations covered under the policy.
Before selecting a policy, you should pay close attention to the benefits offered, such as hospitalization costs, daycare expenses, COVID 19 coverage, and more.
Adequate Sum Insured
The sum insured must be adequate to meet your requirements. So, make sure that you choose a plan that offers the highest coverage for your needs. After all, a family plan that offers a higher sum will be more beneficial.
Type of Policy
There are different kinds of medical insurance plans available, including individual plans, family floater plans, group plans, and critical illness plans.
And, each health insurance policy serves a specific purpose, so choosing the right type of medical insurance policy is crucial.
Waiting period
The waiting period is the time during which you can’t file a claim under your health insurance policy. You must wait for the deadline to expire before filing.
This waiting period usually applies to pre-existing illnesses and maternity benefits. So, consider the waiting period when buying health insurance online, and choose the one with the shortest waiting period.
Lifelong Renewability
Most health insurance policies need to be renewed every year. But don’t worry, you can renew your insurance policy online effectively. In order to renew your health insurance policy, you must pay your premium.
However, if you wish to be covered by a health insurance policy for the rest of your life, it is important to select one that provides lifelong renewal options.
Claim-Settlement Ratio
The credibility of your health insurance company can be determined by its claim-settlement ratio. You can be more confident that you will be able to meet your claim if the ratio is high.
Exclusions
When you purchase health insurance, you can feel secure that you and your family are protected from hospitalizations in the future. But, if you don’t read your policy’s exclusions carefully, you might get surprises when you file a claim.
Before choosing a health insurance plan, make sure the exclusions are clearly defined and that there are the fewest exclusions possible.
Add-ons
Some insurance companies offer add-on coverage along with comprehensive coverage.
In contrast, keeping the comprehensive plan to a bare minimum will lower the premium. Aside from that, not every insurer offers the same add-ons. And, it is possible that add-ons have different names but serve the same purpose.
Online reviews
Make sure you check online reviews of various health insurance companies for comparison. If you do this, you will be able to understand what other customers have experienced so that you can make a more informed decision.
Digital setup
When it comes to buying, renewing, and claiming health insurance, digital insurers make life easier. So, it is essential to choose a health insurance company with a digital setup.
Coverage for new-age treatments
Advanced medical treatments are more accurate and can result in better outcomes than traditional treatments. Make sure your health insurance policy covers such modern procedures. A few examples of new-age treatments include CyberKnife, robotic surgery, and stem cell therapy.