While the average life expectancy has dramatically improved, it is also true that more diseases impact us than ever before. Medical inflation and the nation’s escalating healthcare costs can break the bank and negatively influence your financial situation. Purchasing medical insurance is one method to prepare financially for unforeseen health risks. But before buying a health insurance plan, you should know what a health insurance plan is and the best one for you.
What is health insurance?
A medical insurance policy is a legal agreement between the insured and the insurer. The insurance company receives a premium from the policyholder in exchange for covering the insured’s medical costs, including those for hospitalisation, daycare, post- and pre-hospitalization, etc. The policyholder can pay the bills upfront before receiving reimbursement from the insurance. In contrast, if they choose a cashless service, the insurance provider will pay the hospital immediately in case of a hospitalisation. However, the conditions can change depending on the insurance.
Types of health insurance
Every person is unique and has their own needs. A single medical package cannot meet each person’s unique needs. There are numerous sorts of medical policies accessible in this specific area. Here are some examples of what they are:
- Personal health insurance:
You can buy a personal medical insurance plan to cover your parents, spouse, kids, and yourself. These insurance plans frequently pay for various medical costs, including hospital stays, childcare operations, and room rent. Each member of an individual medical insurance plan has their amounts insured.
- Family Floater Health Plan
With a family floater plan, you can ensure all your family members are under one policy and split the total amount protected. Due to the shared sum covered, these plans are often more reasonable than individual insurance. Family floater plans typically work best for young nuclear families.
- Medical Plans for Senior Citizens
These health plans were created expressly with senior citizens’ medical needs and requirements in mind. Most policies for senior citizens provide extra coverage, including some mental benefits and domiciliary hospitalisation.
- Insurance for Critical Illness
Numerous disorders influenced by way of life are on the rise. Long-term treatment and management costs for conditions like cancer, stroke, kidney failure, and cardiac illnesses can be very high. This is the primary motivation behind the development of critical illness insurance coverage.
- Insurance Plans for Groups
Group insurance plans, as opposed to individual and family floater policies, can be obtained by a group of many people. For instance, a company can buy group insurance for all its workers, or a building secretary could do the same for all of the building’s tenants.
Benefits of Health Insurance
There are many benefits of health insurance plans for the policyholder. Some of them are listed below:
- Aids in managing increasing medical costs
People buy insurance plans to protect their cash from ever-escalating medical expenses. You can spend more than a few thousand rupees due to an accident or medical emergency. A medical insurance plan makes it simpler for you to obtain the care you need to recover by providing coverage for anything from ambulance fees to daycare procedures.
- Efficient cashless claims
Each insurance company will have partnerships with a handful of network hospitals where you can submit claims without paying cash. Receiving emergency medical assistance is now a lot simpler as a result. You essentially don’t have to pay for any of the covered services at a network hospital. We will cover the medical costs for all legitimate claims, leaving you to pay only the required deductibles and non-covered fees.
- Additional safety
You might ask why you need to get your insurance policy if you have coverage through a group insurance plan. Compared to group policies, individual insurance plans provide more and better coverage.
- Important illness insurance
Numerous insurance plans will charge an additional fee and include coverage for severe conditions. This is another essential protection to carry in light of the increased prevalence of ailments linked to modern lifestyles. You will receive a lump sum payment if you are identified with one of the critical illnesses covered. Often, it costs a lot of money to fix these problems.
Choosing Affordable Health Insurance
To choose the best insurance plan, you need to keep a few things in your mind:
- Look over the insured amount
Many insurance companies put a cap on the highest sum insured that you can select. Finding a health insurance plan that meets your needs is necessary if you want a high insured amount. A decent general rule of thumb is obtaining coverage at least six times your annual wage.
- Decide on a lifetime renewable plan
Make it essential to ask how long the plan will cover you when you purchase a health plan, as well as whether it offers restricted renewability or not. Why? since your need for a health plan will be greatest as you get older. Therefore, pick an insurance that can be renewed indefinitely.
- Choose family health plans above individual ones
Individual plans benefit those who do not support a family. To receive the greatest benefits at a more reasonable cost, consider a family health plan if you are purchasing insurance with your family in mind.
- Go for a high ratio of claims
The claim settlement ratio is the proportion of claims that the insurance company resolves to all claims received. Always pick an insurer with a high ratio of claims settled.
Any effective insurance programme should protect you from various severe ailments and flexibility in selecting your insurance. Even if your health condition changes throughout the policy’s term, there won’t be a premium increase. Use these suggestions to make the most of your benefits when looking for insurance. Go for the medical insurance plans and make the most of this investment that you are making to protect yourself from the financial burden of excessive healthcare expenditures.
