Points to check before buying Health Insurance

Sonal Pruthi

12 Feb, 2021

The concept of health insurance requires specific points to check before buying Health Insurance. Health is the prime consideration point for any country’s growth. As said, “Health is Wealth.” There is growing awareness about health due to fast-changing lifestyle. The government has introduced the revised guidelines in 2016- IRDAI (Health Insurance) Rules, 2016. These Guidelines indicate the current changes that insurance companies have to take in their health insurance plans.

Medical inflation is very high with the changing times. In the Pandemic, the government has realized the need for the public health infrastructure to be revised. Our country’s health infrastructure is dependent on multiple types of sciences such as Ayurvedic, naturopathy, allopathic and homoeopathy. All the types of sciences are part of the health services.

To improve the awareness, the Government of India- via- Insurance Development Regulatory Authority of India^[1] and General Insurance Corporation has run advertisements on health insurance.

Why do we need to buy Insurance?

It is important to understand that insurance acts as an indemnity for an individual. We need to understand the risk associated in our daily lives in terms of our life, health, or property.

1. We can’t estimate the uncertainties of our life, nor can we compute the value of risk associated with it.
2. What can be done is that risk can be covered financially. Financial Security can be achieved by securing our investment.
3. Insurance is considered as a financial tool which reduces the burden during uncertainties.
4. By paying a premium against a policy, you will be protected against the loss.

Following  Factors to be considered before buying Health Insurance Plans

A.  Individual Health and Family Floater Policy

There are multiple health insurance policies which can be covered:

1. Individual Health Policy– This policy covers only one person. The health policy’s premium is decided according to the age, sickness, medical history, current health conditions, and risk associated with it.
2. Family Floater Policy– According to this policy, it is the Insurance designed to fulfill the family’s needs. Each family member shares the amount assured. The family floater policy is shared between- spouse, proposer, dependent parents and dependent children.

B. Comparison between the two policies- buying Health Insurance

To understand health insurance plans, it is crucial to know the individual’s needs – being married or unmarried provides guidance to buy health insurance. The comparison is drawn between the individual plan or the family plan. If you are single, the best option is to go for the individual health plan. In case, one is married, opting the family floater plan.  The family plans are more cost effective and efficient. Most discounts are offered on the family floater plans. The cost of insurance must cover hospitalization expenses. Being the bread winner of the family, an individual can opt for the additional individual health policy plan cover.

C. Types of Policies while buying Health Insurance Plans

There are two categories of the health policies under consideration for buying Health Insurance Plans-the first class is a salaried employee, and the second class are self-employed individuals.

1. Salaried class employees– The coverage includes- spouse, dependent children, dependent parents, and sometime parents-in-law. It also covers employees.

It doesn’t follow the futuristic approach. The plan lapses when the individual leaves the company/firm.

The best plan one should include while doing company insurance is to take floater medical policy.

2. Self- Employed Individual– If the person is the self-employed individual then family coverage can be taken. The self employed individual must opt for basic health insurance plan for himself and his family members. Such a plan would help the individual to support in case of the family emergency or health emergency.

D. Other Factors

1.  Understand the coverage- the coverage of health is essential. The number of diseases is increasing every day; their untreatable diseases in the recent past, now have become curable.

2. Go through a medical test- one must understand that one needs to undertake the medical examination before taking the policy. It is advised to undergo before buying health insurance.

3. Understand the plan’s coverage– it means where the plans covers, whether it is a reimbursement or cashless policy.

4. Beware of the Medical Policy– that it covers all the policies signed in written form. It covers all the diseases or eventualities.

5. Waiting Period– The most important part of buying a health insurance plan is the coverage of the diseases. Not all conditions are included in the coverage list of the health plan from the day of the policy. There might be a waiting period of 30-90 days for diseases.

Conclusion

It can be concluded that IRDAI Insurance License holders have the options to sell health insurance policies considering the needs of their customers. The importance of these plans for the customers is that- buying a health insurance plan is totally dependent on their discretion. The adequate insurance coverage is a sure short way to cover the maximum risk associated with health.  Medical emergencies are uncertain hence one needs to be prepared.

Read our article:IRDAI Amends Norms Related to Insurance Surveyors and Loss Assessors: Analysis