How to compare health insurance policies?

What is health insurance?

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider.

Importance of buying health insurance

As medical care advances and treatments increase, health care costs also increase. The purpose of health insurance is to help you pay for care. It protects you and your family financially in the event of an unexpected serious illness or injury that could be very expensive. In addition, you are more likely to get routine and preventive care if you have health insurance.

You need health insurance because you cannot predict what your medical bills will be. In some years, your costs may be low. In other years, you may have very high medical expenses. If you have health insurance, you will have peace of mind in knowing that you are protected from most of these costs. You should not wait until you or a family member becomes seriously ill to try to purchase health insurance. Here are some suggestions for you to choose best health insurance plans.

Best health insurance plans in India

The medical costs are constantly on the rise, and so are various diseases and illnesses. All of this stresses the importance of purchasing a health insurance policy that will benefit the individual and his family. But do you compare the policies before purchasing the health insurance? Comparing policies helps you to understand and compare between different companies in terms of features, price, claim settlement ratio, sum insured.

Things to remember while purchasing health insurance policy

• Room Rent capping and sub limits: Insurance Company provides capping on room rent. It depends upon company to company what will be the limit.

• Networking hospitals: To avail cashless facility, an insured person has to get hospitalized in networking hospital. Networking hospitals are those hospitals where your insurance company has a tie up with the hospital.

• Coverage: Coverage is nothing but sum insured.

• Loading charges on premium: If you are suffering from any pre existing disease and undergoing through pre medical test, loading charges might apply depending upon the type of disease.

• Add on riders: Insurance company provides you add on benefits or riders like Critical Illness, Reduce Waiting period for Maternity, etc. To avail these riders you need to pay extra charge.

• Claim settlement ratio: One of the important parameter a person has to look after while purchasing health insurance policy is settlement ratio.

• Eligibility: For every health insurance policy, a person has to look for eligibility. Every company has Minimum and Maximum Entry Age for purchasing a new policy.

• Offers and Discounts: There are some companies who provides discounts if you are opting policy for more than a year.

• Exclusions: Exclusions are of 2 types. Temporary and Permanent exclusion. Temporary Exclusion means there are certain list of diseases if occurred after purchasing the policy one has to serve 2 years waiting period and there are certain list of diseases if occurred before purchasing the policy one has to serve 4 years waiting period which will depend on company to company. Permanent exclusion means there are certain diseases which can never be covered by insurance company.

• Free health check up: While purchasing health insurance policy, you need to check if the company is providing free health check up. If yes, then is the company providing on claim free year basis or every year.

• Claim settlement process: You need to understand the claim process first, before you buy health insurance policy. How to avail cashless facility? How to reimburse? What is the process for the same? Everything to need to understand before purchasing the policy.

• No Claim Bonus: If you do not claim for the entire policy period, company provides you an additional bonus in terms of percentage with maximum limit. Bonus depends upon company to company.

• Restoration: : If your basic sum insured exhausts because of any hospitalization then the company restores the entire basic sum insured back to your policy for different diseases, that too with no extra cost and no additional paper work.