3 minsMarch 19, 2017
A health insurance plan popularly known as 'Mediclaim' has become inevitable in today's era of sky rocketing medical expenses. And if you don't have one of your own, then you may end up shelling out huge amount from your pocket.
Understanding the significance of health insurance for your family is just the beginning. The next crucial step is choosing the right health insurance plan especially given the variety available today. While many plans offer unique features, there are key aspects common to all that should be compared before making a decision.
Here are eight essential features to consider when selecting a health insurance plan: health insurance plan:
- Room Rent Limits:
- Hospital room rent can be a significant expense. Some insurance companies set a cap on room rent, often at 1% of the sum assured, and 2% for ICU stays. However, some insurers offer plans without these limits, which might be more beneficial.
- Coverage of Pre-Existing Diseases:
- These are conditions you already have before purchasing the policy. Insurance companies typically have a waiting period of 2-4 years before covering claims related to these diseases. It's advisable to choose a plan that covers pre-existing conditions with the shortest waiting period.
- Co-payment Clause:
- This clause requires policyholders to share a part of the claim cost. For example, with a 20% co-payment, on a claim of Rs 1 lakh, you would pay Rs 20,000. Ideally, a plan without a co-payment clause is preferable.
- Network Hospitals:
- These hospitals have a direct agreement with the insurance company, allowing for cashless treatment. It's beneficial to choose a plan with a wide network of hospitals, especially those that are reputed in your area.
- Pre and Post Hospitalization Expenses:
- These cover costs incurred before and after hospitalization. While the standard coverage is usually 30 days before and 60 days after, some plans offer extended coverage periods. Look for plans that provide the maximum coverage duration.
- No Claim Bonus:
- This bonus is offered for years without a health claim, increasing your sum assured for the next policy year. Plans offering a higher no claim bonus are more advantageous.
- Policy Exclusions:
- Understanding what is not covered by your policy is as important as knowing what is covered. Review the exclusions carefully to avoid surprises during a claim.
- Premium:
- While the cost of the premium is important, it should not be the sole deciding factor. A lower premium might mean fewer features or more exclusions, which could be costly in the event of a claim.
Remember, medical emergencies can arise unexpectedly, making adequate health insurance coverage a crucial aspect of financial planning. This not only helps manage medical costs but also contributes to achieving long-term financial goals.
