Health Insurance- The Best Backup Plan in Today's Times
In such times it is indeed wise to take a smart decision and gear up for uninvited medical expenses. The best way to secure the future of a person as well as their dear ones is to avail health insurance.
What is Health Insurance?
Health Insurance covers the comprehensive cost of an insured individual's medical and surgical expenses. The individual pays a fixed sum -known as premium, every year for their health cover. It serves as a backup plan in case of both emergency and planned medical expenses.
Benefits of Health Insurance-
Health Insurance is often mistaken for paying only the hospital bills in case of emergencies. Besides coming in handy during emergencies, Health insurance can also be availed in case of planned procedures. Modern-day Health Insurance plans do provide additional benefits including covering pre and post hospitalization expenses, ambulance expenses, day care procedures, health checkups, and even alternate treatments such as Ayurveda.
Types of Health Insurance-
There are various types of health insurances that are offered in India. Health Insurance Plan is broadly categorized under three headings in India:-
Hospitalization or Indemnity Plans- Hospitalization plans reimburse the hospitalization and medical costs of the insured subject to the sum insured.
Hospital Daily Cash Benefit Plans- As evident from the name, the policy pays out a definite sum of money daily of hospitalization regardless of actual costs.
Critical Illness Plans- These are benefit-based health insurance plans which pay a lump sum amount on diagnosis of predefined critical illnesses and medical procedures.
Despite its popularity, many people don't take health insurance, probably due to lack of awareness. As per the latest report released by National Sample Survey Organization (NSSO) titled "Key Indicators of Social Consumption in India: Health", only 20 percent of the Indian population had health insurance coverage.
There is no bone of contention over the need of availing a health insurance plan as medical expenses are sky-rocketing.
At the same time, it may be perplexing when it comes to choosing the best health insurance plan with numerous offers by different companies coming up with enticing plans and policies. It, therefore, becomes necessary to carry out health insurance comparison before going for any plan. One can easily figure out the best health insurance plan for him/her while focusing on the below-mentioned points.
Points to Remember-
While taking health insurance, it is important to keep the following information in mind
- For whom do I need health Insurance? Before deciding to go for health insurance policy, you must ascertain your family's requirements. While taking health insurance do keep in mind the number of family members and their age.
- How much insurance do I need? This will be determined based on your family members. At the same time With an yearly increase at a rate of 17-20 per cent inflation it is essential to look for the maximum available sum assured at the best possible rate
- Which Company Am I Taking health Insurance from? Check the background of the company and look for the average Incurred Claim Ratio or ICR of all companies. Choose for the one which is closest to this average for a period of few years.
- Furnish Complete Information- It is extremely vital to provide accurate information regarding one's health in the proposal form, as any kind of inaccurate or mismatched information can make the insurer reject the claim form.
- Focus on Factors that Influence the Premium- Factors including one's life history, family health history, lifestyle, smoking habits, age and others influence the premium of a health plan as these are accountable for determining the premium amount.
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