When you or a loved one is ill and in hospital the last thing you want to worry about is the means to pay the hospital bill. Hospital expenses reimbursement policy (called mediclaim or Health insurance policy in common parlance) enables you to pay for hospitalization expenses when you or your loved one are unfortunate enough to get admitted to a hospital.
You should take health insurance when you and your family members are healthy because you are unlikely to get the Insurance if a serious illness or disease has already set in. Answer the proposal form fully and completely without hiding any facts as it is better to get the health insurance policy at a higher premium or even not to get it at all instead of paying premium and then not getting the money when the claim arises.
Check the age up to which the policy is renewable, any sub-limits for room rents, any requirements to pay part of the eligible hospitalization expenses yourself (called co-payment), formula for increase in premium if you make a claim, formula for no claim bonus and the coverage of pre-existing disease. Or you can just fill up the form alongside and get competing offers from the leading health insurance companies. Don't forget to ask them about the parameters pointed out above.
Another policy that you may definitely need is a serious illness disability policy (also called Critical Illness Policy). When a serious illness such as a stroke or kidney failure hits you the mediclaim policy only pays for the hospitalization expenses. It obviously does not cover you for the loss of income arising from the loss of job or business due to the serious illness. This is what a critical illness policy covers. You can buy standalone critical illness policies from non-life Insurance companies or take a critical illness rider along with your life insurance policy.
What are the different aspects that I should consider when buying a health insurance policy?
There are different aspects that you should consider when buying a health insurance policy.Apnainsurance.com Research Bureau
05 Dec 2007
Basic Coverage - A health insurance plan should provide for hospital room charges, doctor/surgeon fees, medical tests, medicines and related expenses.
Critical Illness Cover - In addition, if the plan provides for a separate rider that pays a lump sum on detection of a critical illness (as defined in the critical illnesses list of the insurer), add that benefit to the basic coverage.
However, it is be more economical to purchase a separate critical illnesses plan. For a 35-year old individual, the cost of the critical illness benefit rider could range Rs.900 to Rs.2,000 per annum, including service tax - which adds up to a premium of 16 per cent to 40 per cent on the basic cost of the plan. On the other hand, a critical illness plan costs around Rs. 425 - Rs. 450 per annum for every Rs. 100,000.
Family or Floater Coverage - In the event family members are being covered, a floater policy or a family package helps reduce the premium outflow. Moreover, premium cost can be reduced by purchasing health insurance cover for a longer duration.
Long Term Health Plan - If the insured desires to purchase a high cover plan and ensure stable premiums, the premium on a long term critical illness plan is the way to go. Premiums in such plans remain stable for a period of five years.
See also:
Does a health insurance plan cover any other facilities/expenses besides hospitalization costs?
What is the difference between a Health Insurance policy and a Critical Illness policy?
What is the difference between a Critical Illness Rider and a Critical Illness Plan?
Illnesses covered by Critical Illness plans
Floater plans
When does the Critical Illness plan not cover the illnesses?
Miscellaneous Health Insurance FAQs
Health Insurance FAQs about Coverage
Health Insurance FAQs about Claims
Health Insurance FAQs about Premiums
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