Financial planning is incomplete without a health insurance plan as it helps you manage expenses without disturbing your savings. The inflation in the cost of hospitalization and medicines is another reason why you should purchase a health insurance policy. Get health insurance even if you are in prime health as many diseases enter without giving a warning. Similarly, health insurance policies even include a personal accident cover that bails you out from the expenses associated with injuries sustained during an accident. Consider these factors to pick the best health cover plan for yourself:
Type of health insurance
Health insurance plans usually come in two categories. The first category is named an indemnity plan that reimburses the actual medical costs. The second category is called defined benefit in which the insurer pays a fixed amount to the policyholder for managing their hospitalization and associated costs. Both these types have their pros and cons and therefore, you should choose the one according to your requirements.
For example, regular health insurance, family health insurance, and parents’ health insurance are categorized as indemnity plans. Critical illness insurance comes under the defined-benefit health insurance type. It is because it provides a fixed sum insured in case the policyholder gets diagnosed with one of the major illnesses listed in the policy.
Daily cash benefit
Some health insurance plans offer a daily cash benefit to the policyholder. It means that you will get a daily compensation benefit till the period for which you remain hospitalized. This cash benefit is to compensate for the loss of income you suffer while recovering from an illness.
Some critical illness plans offer monthly compensation during the recovering period. It is a set percentage of the sum insured that is offered by the insurer.
Cashless benefit
You no longer have to claim for an insurance reimbursement after getting hospitalized. Many insurers offer a cashless benefit that covers the medical bills and hospitalization expenses without you having to file a claim application. This facility is available at the select network hospitals that an insurer lets you in advance. Choose a health insurance plan that offers this benefit at maximum hospitals in your city.
Coverage amount
Always choose a medical insurance policy that provides comprehensive coverage. Medical bills, ambulance costs, room rent, diagnostic charges, and other expenses are covered under a medical insurance policy. Maternity insurance coverage is generally included in your healthcare plan as it reimburses a significant amount of the maternity expenses. Also, a personal accident cover is included in most health insurance policies these days. It covers the expenses incurred due to the injuries that occurred during an accident.
However, remember that a health insurance plan covers the medical expenses but only up to the limit set by the insurer. Though many insurance providers allow you to choose a sum insured, others decide the sum insured after analyzing your application form.
It is recommended that you choose the insurer that allows you to go for a higher sum insured. However, also keep in mind that a higher sum insured will also increase the policy premium.
Sub-limits
Some insurance providers also set a sub-limit for particular cost-heads. For instance, the room rent is a fixed amount that you pay to the hospital for providing you with a private room during your stay in the hospital. If an insurer fixes a room rent cap as 2 or 3% of the sum insured, anything above it needs to be paid by the policyholder. Therefore, you must go through these sub-limits as they can increase your out-of-pocket expenses.
To find suitable health insurance plans that come at affordable premiums, visit Bajaj Finserv’s official site. Here you will find the best health care plans of the leading insurance providers in India.
