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Important Concepts in Health Insurance

18 August, 2016

Medical costs are constantly rising due to the growing demand that results from our burgeoning population and the increase in lifestyle diseases. This makes it crucial for people to avail health cover from an early age.


Until a few years, pre-existing conditions, critical sicknesses, and outpatient expenses were outside the coverage available under medical insurance. An increase in the competition within the industry has now widened the scope of coverage, with different companies offering various types of policies.


With so many insurers and policies to choose from, consumers find it difficult to choose the right health insurance plan. To understand the benefits and shortcomings of different policies you need to be acquainted with certain key concepts or features.


1.  Restore Benefits

This feature allows policyholders to reinstate the basic sum insured in the event that they have exhausted this amount completely and there is a different illness or disease which requires additional sum insured during the remaining health policy period.


2.  No-Claim Bonus

When no claim is made during the policy period, a no-claims bonus is made available to the policyholder. This benefit can be between 5% to as much as 20% of the sum insured per year, with a maximum capping of up to 50% or 100%.


3.  Waiting Period for Existing Conditions

If you have an existing medical condition, the health insurance company will not provide coverage for the condition at the outset. Coverage only becomes available 2 to 4 years from the date of purchase, depending upon the plan chosen by you.


4.  Insurance Portability

This feature allows you to change service providers if you are not happy with your service. Policyholders can use the portability feature to transfer benefits, such as accrued no-claims bonus, to the new insurance provider. Moreover, policyholders should shift their coverage at least 1 month before the renewal date to ensure the documentation formalities are completed on time.



5.  Premium

The premium is your investment or the amount you pay the insurer to secure an insurance policy. Acquiring health cover at an early age can result in significant savings on the premium. Try to find the balance between an affordable premium and maximum benefits.


The Lifeline health insurance plan from Royal Sundaram provides excellent coverage at affordable prices. You can avail sum insured starting as low as INR 2 lakhs to as high as INR 1.5 crores. Any person between the age of 18 and 100 years can avail this policy with a lifelong renewal option. Children can be covered from 91 days onwards.


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