After the world has been through the pandemic, investing in health insurance is more important now than ever. One can argue that if they have enough savings, they won’t need insurance, but that is wrong. Medical costs are sky-rocketing every year, so relying on just savings is not really a smart choice.
Almost everyone who buys new health insurance keeps in mind to choose a policy that covers everything.
But due to the vast availability of different types of policies, it becomes daunting and confusing to pick one. In a rush, most people end up with insurance they know nothing about. And when the time comes to claim it, it becomes extremely problematic.
To avoid that situation from happening in your life, it’s good to have some first-hand knowledge about how you should go ahead while making such a decision.
And if you have some tips in mind, your process is likely to become much easier.
Also, term life insurance is likely to increase by 15%, so now is the best time to buy it before it starts costing you more.
Now, let’s understand what 5 things you must know to pick a perfect health insurance plan:
1. Look For the Right Coverage
While going through any policy, keep an eye out for all the areas it is covering. Check out the pre and post-hospitalization benefits, coverage against pre-existing illness, ambulance charges, maternity benefits, cashless treatment, in-patient hospitalization, etc.
Compare the pros and cons of different policies against your needs before making any final decision.
Also, there are sophisticated words mentioned under the terms and conditions which most people miss out on. These words impact a lot during the time of claim. So don’t be in a rush, ask all the questions to your agent, reflect on the answers and then make a final call.
2. Keep an Eye on the Co-pay Clause
Buying insurance minimizes the burden of falling prey to huge medical expenses, but it doesn’t mean you are totally exempted from paying anything.
Most insurance policies include a co-pay clause: the percentage of the cost borne by the insurance company and the percentage borne by you. This ratio varies in every policy.
So, whenever you are comparing the policies, make sure the higher percentage falls on the agency than on you. This small observation will definitely save you from spending a lot during the time of claim.
3. Inquire About the Waiting Period Clause
All insurance policies have a waiting period before you can avail of them. This means you have to wait for a certain period of time before you can claim your insurance. This can range anywhere between 12-24 months. So, if you want a policy where the waiting time is less, make sure you ask about it.
Also, don’t forget to avail of the no-claim bonus. This means if you don’t claim anything in a single year, your sum insured increases by a small percentage without paying anything extra.
4. Know About Room-Rent
Room-rent limit means the maximum limit of rent you can opt for while choosing a room during hospitalization. This is an important step because this determines what kind of room you will be getting in the hospital.
Insurance that permits a lower room-rent limit means you will either get a public or a shared room but while going for higher ones can get you semi-private to private rooms.
If you have a lower limit in your policy and you choose a private room, you will be responsible for paying the extra cost. So, it’s better to go for one that provides a higher limit, so you don’t have to compromise with the health or the money.
5. Go For the Long-Term Plan
I’m sure by now you’ve already understood that buying health insurance for the long term is a lot more beneficial than the short term. Go for the plans that include adding a new family member or have the option to pass the premium from one member to another (in the case of death or non-requirement).
Also, don’t forget to check the period of time for which the insurance stays valid so that you won’t miss out when it’s time for renewal.
Over to You…
Apart from all the points mentioned in the article, here’s one more important tip: If you are going to buy insurance for yourself or your family, it’s better to start at the earliest. This is because premium prices tend to increase with age, and the coverage provided is never adequate.
So, dig deep into the details and choose wisely.
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