3 Key Points to Keep in Mind When Buying Health Insurance
Introduction: If you’re in the market for health insurance, there are three crucial points you must consider. Ignoring these factors could lead to regret later on. In this guide, I’ll explain important aspects of health insurance that are often overlooked but can significantly impact your financial well-being. Stay with me until the end to gain insights that most companies don’t openly talk about, but which are essential for making an informed decision.
1. Avoid Room Rent Capping
The first and most basic point is to ensure that your health insurance policy does not have any room rent capping. Room rent capping means there is a limit on how much the insurer will pay for your hospital room per day. For example, if your policy caps room rent at ₹10,000 per day but you choose a room costing ₹20,000, the insurer will cover only ₹10,000, and the rest will come out of your pocket.
This limitation doesn’t just apply to room rent. When your room rent exceeds the cap, the insurer may reduce the claim for all other hospital expenses by the same percentage. So, if you opt for a room beyond the allowed rent, you might end up paying 50% of all your hospital bills out of pocket. Hence, it’s essential to pick a policy with no room rent capping to avoid unexpected financial burdens during hospitalization.
2. Check the Claim Settlement Ratio
The second critical point is the claim settlement ratio (CSR). This ratio indicates how many claims the insurance company has received and how many it has successfully paid out. While it’s tempting to choose a cheaper policy, remember that you buy health insurance to provide financial support during medical emergencies, not to save a few thousand rupees upfront.
A company with a low CSR might reject your claim when you need it most, defeating the entire purpose of having health insurance. Always choose a provider with a high claim settlement ratio to ensure that your claim will be honored when needed. It’s not just about saving money but ensuring long-term financial security.
Also, consider bonus clauses. Some insurers offer a bonus even if you don’t file any claims, increasing your coverage amount year by year. For example, after two years, your sum insured could double, giving you more protection at no extra cost.
3. Opt for Policies with Maternity Benefits and Restoration Features
The third and final important point is to consider health insurance policies that offer maternity benefits with minimal waiting periods. Most policies require a 9-month to 3-year waiting period before covering maternity expenses, but some newer policies are offering benefits after just three months. This is especially beneficial if you are planning for a family soon.
Additionally, look for policies with restoration benefits. Restoration means that once you exhaust your sum insured during a hospital stay, the insurer will refill the amount automatically for future claims. But be careful—some policies require you to use the entire sum insured before restoration kicks in, while better policies restore the amount after partial use.
This feature is incredibly useful because it ensures you’re not left vulnerable in case of multiple medical emergencies. Also, check if your policy covers alternative treatments like Ayurveda or modern treatments like robotic surgeries. The more comprehensive your policy, the better prepared you will be for unexpected medical situations.
Final Thoughts
One alarming fact is that 70% of the Indian population is just one large medical bill away from poverty. A single health emergency can wipe out years of savings, which is why having a robust health insurance plan is the foundation of good financial planning. Once you have health insurance, you can focus on other investments like building an emergency fund or retirement savings.
Remember, the best time to buy health insurance was yesterday. The second-best time is today. Don’t delay—start securing your financial future by investing in the right health insurance plan now. Make sure you stick to basic, comprehensive policies like family floater plans or individual health insurance plans. Avoid getting distracted by traditional or ULIP plans, which often offer less value for your needs.
By following these points, you’ll be able to find the best health insurance policy for you and your family, ensuring that you’re covered in times of need without facing unexpected costs or complications.
If you found this guide helpful, make sure to explore your options and compare policies using tools like Policy Bazaar to get the best deal. Don’t forget to like and share this article if you found it informative!