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Posted by Royal Sundaram on 27 Oct 2020
If there is one thing that the Coronavirus has made clear, it is how quickly hospital bills can pile up. The importance of medical insurance cannot be stressed enough in these tough times. Health insurance is a necessity for everyone, but a large section of the society still only sees it as a tax-saving instrument.
Even the people who have insurance offered by their employers need individual health insurance. That’s because your health plan will be insufficient to meet your requirements in case of an unfortunate event. Moreover, if you leave the organization, you will no longer have any coverage.
So, if you’re looking to buy a health insurance policy where do you start? Don’t worry, we have you covered!
Choosing the Type of Plan
There are different types of health insurance plans available in the market as mentioned below. Pick the one that suits your needs.
Individual Health Insurance Plans (indemnity plans)
As the name suggests, these plans offer coverage for one person. However, you can choose to add your family members to the plan by paying extra premiums.
Family Floater Health Insurance Plans
These plans offer coverage for the entire family – your spouse, children, parents, and other dependents. All members of the family are covered under a single sum assured.
Royal Sundaram’s Lifeline Health Insurance is an indemnity plan that is offered as both individual and family floater plans as per your needs.
Critical Illness Insurance
This policy can be purchased as a rider or as a standalone policy. It offers coverage for a previously specified list of illnesses and provides the sum assured as a lump sum on diagnosis, to cover the cost of medical expenses.
Hospital Daily Cash Benefit Plans
This type of insurance offers a lump sum payout for each day of hospitalization. This amount is defined beforehand in your policy and can be higher than the actual cost of hospitalization. This plan can also be bought as a rider or as a standalone policy.
Determining the Coverage
There are no rules when it comes to deciding how much health cover you will need. However, there are some factors that you should take into consideration like the city you reside in, history of illnesses in your family, etc. People who live in metros or Tier 1 cities should opt for higher covers than people who live in Tier 2 and Tier 3 cities as the standard of living and hospital expenses are higher.
Moreover, the sum assured that you will need should be considered for the cost of medical procedures 10 years from now. Due to medical inflation, the cost of hospital bills will have increased considerably. Keep that in mind while deciding the sum assured you will need.
Check if Pre-existing Ailments are Covered
Most medical insurance plans including the Arogya Sanjeevani Policy cover pre-existing ailments. However, there is a waiting period of up to 48 months before you can make a claim for them. While buying the insurance plan it is extremely important that you disclose all pre-existing ailment to ensure smooth claims settlement process.
Check for Benefits that Enhance your Sum Assured
It is a wise idea to look for plans that offer to enhance your coverage over time. This can be done by the means of:
No Claim Bonus (NCB):
Under the No Claim Bonus, the insurers reward the policyholders for having a claim-free year by increasing the amount of sum assured without an increase in the premium. If you accumulate enough NCB, your sum insured can increase by up to 100%. Make sure to read the policy documents carefully to determine what the rules are for NCB.
Restoration for additional coverage:
With this benefit, you can get some extra coverage from your insurer. This benefit is offered after you exhaust your entire sum insured during hospitalization or treatment but still require more. Different companies have different rules for restoration, so read the terms and conditions carefully.
With the plethora of options in the market, buying a health insurance policy can be a tedious task. We hope this information helps you reach a decision.
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