As we all know that health insurance pays for all kinds of medical expenses to the insured person. This will reduce the financial burden on the policyholder at times of medical emergencies. Therefore, it is worthy to have a healthcare plan. But before that, one needs to buy it. So, it is suggested that whenever you buy a health insurance plan, always choose the best one. There are some factors that help in choosing health insurance. Even you will also know how to choose a health insurance plan or a mediclaim policy.
Moreover, the medical inflation rate in India is near about 17% yearly, much above the general inflation rate. Thus, if you have health insurance coverage then you can effectively fight serious illnesses. Also, healthcare costs are increasing at a high speed. Hence selecting the best health insurance policy is as important as our health.
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How to Choose a Mediclaim Policy?
Well, health coverage includes medical expenses that depend on the premiums paid by the insured, the coverage provided by the insurer, and the requirement. However, choosing the right mediclaim policy is as crucial as deciding to look for a health insurance plan. Most healthcare plans in India involve treatment, diagnosis, and nursing expenses and may also give add-on benefits for particular requirements.
Factors to Choose the Best Health Insurance Plan
Furthermore, there are a few things that should be considered while selecting the right plan. Firstly, the factors that help you in choosing the best health insurance plan. It is necessary to keep these factors in mind while choosing the mediclaim policy.
Age
Your age decides the amount of the coverage you need. The young people can select lower coverage plans and slowly increase it over the years. As the risk of health problems increases with age. Also, the chances of a claim being made increases. The premiums become costly for older policyholders.
Health
Another factor to consider while choosing a mediclaim policy is your health. The current status of your health predicts the coverage you would need. Low coverage will be fine if you are healthy. But if you are suffering from any health condition that may need higher medical care in the future. So it is better to choose a higher coverage amount. In case, your ailment will worsen with age, then select a higher coverage amount and increase it slowly to avoid high premium payments.
Location
Sometimes, the city where you live decides the costs of medical treatment. For example, the medical facilities in metropolitan cities like Mumbai and Delhi are more expensive as compared to the other cities.
Income
It is not wise to choose a mediclaim policy whose premium is quite high. Choosing health insurance that eats into your overall financial health will put more burden on you. Moreover, the healthcare plan aims to secure your health and finances during any kind of emergency.
So these are the factors that help you in choosing health insurance plans.
Tips to Select the Best Health Insurance Policy
Well, the number of consumers aware of health insurance is increasing at a constant rate. The insurance companies try to reach every corner of the country. So, they can educate the citizens about the need for an insurance plan. On the other side, increasing medical costs have made it hard to get the best treatment without spending a lot of money.
But you do not need to worry much. As all of your financial stress will reduce just by purchasing a healthcare plan. Thus, the best health insurance policy seems to be a boon for everyone. Because there could be a sudden accident or illness. So it would be better to be well prepared. Here are a few tips that help you in choosing the best health insurance plan.
Co-Payment Clause and Deductible
The Co-Payment clause needs the policyholder to bear a percentage of the total medical expenses out of pocket. Only after that, the insurance will begin to bear the remaining expenses. It ranges from 10% to 30% of the total expenses depending on the insurance company. If possible, you should buy a plan with low or no copayment.
The Deductible is similar but it is defined as a fixed amount. For instance, if your plan has a deductible of Rs.10,000 and your claim amount is Rs.15,000. Then the insurer will only pay Rs.5000. Therefore, the insurer starts paying only when your bill rises over the deductible limit.
Hospital Room Rent Limit
Likewise, room rent of hospitals also varies from one plan to the other. Some insurance companies limit room rent by a percentage of the total sum insured (S.I.). For instance, 1% of S.I. per day while others may limit it by amount, suppose Rs.4000 per day. So you need to look for insurance companies which are not putting a cap on room rent.
However, there are other expense limits also that you require to examine before choosing the plan. But room rent is the most important one that you should consider. As room rent will cover a large portion of your hospital bill.
Type of Health Insurance Plan
The type of plan depends on your age and medical requirements. Some insurance companies provide apt benefits for senior citizen policyholders and younger policyholders. On the other hand, family floater plans have their own set of benefits, like health cover for an infant. Therefore, you can select the type of plan you need.
Networking of Empanelled Hospitals
When you buy a plan, you have to keep your focus on the network of empanelled hospitals where you can get cashless treatment. Cashless treatment is a lifesaver especially when you need immediate medical assistance and may not be able to arrange the money needed.
Insurance Premium
The premium will vary as per the benefits selected by you. The more the number of benefits, the more the premium will be. It is suggested that you should compare the premiums for similar benefits. Then choose the policy that suits your wallet as well as offers you sufficient advantages.
Step-By-Step Guide to Choose the Best Health Insurance Plan
Moving further, once you have decided to purchase health insurance plan. Then make sure you choose the best health insurance plan. Well, choosing a plan to buy is a difficult process. So here are some steps to help you in choosing the best health insurance.
Decide the Coverage Amount
Calculate the amount of health coverage you require. Always opt for policies providing maximum coverage and amount for the treatment. As medical costs are increasing constantly. So do consider this step before buying any plan.
Compare various types of Health Insurance Plans
As per the need of the policyholders, the insurers provide a wide variety of health insurance plans-
- Individual Health Plan
- Family Healthcare Policy
- Plans for Senior Citizens
- Surgery and Serious Illness Health Plan
- Maternity Health Insurance
- Personal Accident Policy
- Unit Linked Health Insurance
Also, you can find a complete comparison between the Individual and Family Health Insurance Plans here. Do a deep study of the inclusions and features provided by the plans. This will help you in choosing the best health insurance plan for you.
Even some healthcare plans are also provided by the Government of India. You can click here for more details on it.
Review Network Medical Facilities
Health insurance policies offer you cashless medical care from network hospitals. Network hospitals are a group of hospitals linked to insurance companies. Make sure hospitals near you are included in the network hospital list.
Calculate Related Costs
Examine the number of expenses you will be making. Compare the premium charged by various insurance companies. Normally, the lesser your premium, the more is your out of pocket costs.
Select a Health Insurance Policy with Lifetime Renewability
You also need to examine the renewability of the plan you will buy. As lifetime renewability is an important element to consider. Most of the people forget to look at the renewal process. So do check that there is an option of lifetime renewability in your plan or not. Also, a plan with a lifetime renewal option helps you to continue with the same policy for years.
Compare Benefits Provided By Health Insurance Plans
Till now, you might have pinned down your options. To choose the best option, make a comparison chart on the benefits provided by each policy. Consider all the factors such as waiting period, coverage amount, renewal age, inclusions, and exclusions, etc. to select the best possible plan.
Conclusion
Hoping that this article will help you in choosing the right health insurance plan. Well, choosing health coverage is not a child’s play. So take the best decision before purchasing any plan. You can consider the above-mentioned tips and factors to increase your coverage benefits while buying a policy. As health insurance is a vital requirement for everyone. Hence, put your great efforts into selecting the right plan.
FAQs related to this policy
These days, it is important for insurance companies to provide health insurance plans with a lifetime renewal facility. Thus, if you have a healthcare plan, then you do not need to worry about its renewal. As you can renew the policy even at your later age. If you continue with the policy in time, without any break.
Yes, there is also a tax benefit on the health insurance plans. These plans provide tax deductions under Section 80D of the Income Tax Act, 1961. One can make use of tax benefits up to Rs. 50,000 yearly.
Yes, it is really important to select a plan with a good selection of network hospitals. As this will help you in getting cashless treatment anywhere in India. You just need to inform your insurer. Then you will be able to get medical assistance in the network hospitals.
If you are confused about the type of plan you should buy. Then buy the family floater plan. As it is good to have a family floater plan. Because this would increase the premium.
COVID-19 Update | Choose Best Health Insurance Plan
These days, due to the high rise in coronavirus cases in India. You need to pay Rs. 5-8 lakh approx Covid-19 treatment in the top class hospitals. In case, if more than 1 family member gets hospitalized. Then it will be very difficult for you to cover all the medical expenses. Thus, there is a great need to have a health insurance plan, especially in the times of this pandemic. As it will reduce your financial burden during the time of medical emergency.
