Due to the growing demand of medical care, healthcare costs are continually rising. Hence,it becomes essential for people to avail health cover from an early age.The scope of coverage has widened due to the increase in the competition with the industry. Now, different companies offer various types of policies.
It has become challenging to choose the right insurance plan with so many insurance policies to choose from.To understand the benefits as well as shortcomings of various policies, you must be acquainted with certain vital concepts or features.
Let us take a look at some of the features of health insurance first:
- Helps in Restoring Benefits
With the help of this feature, policyholders can reinstate thenecessary sum insured in the event of exhausting this amount completely. There is a different illness or disease that requires an additional sum insured during the remaining period of health insurance.
- Cumulative Bonus
Cumulative bonus ismade available to the policyholder when no claim is made during the policy period. Benefits can go up to 50% of the sum assured.
- Waiting Period for Existing Conditions won’t be covered
The health insurance company won’t provide coverage for the condition at the outset if you have an existing medical condition. Coverage becomes available 2 to 4 years from the purchasing date. However, it depends upon the plan you choose.
- FlexibleInsurance Portability
Using this feature, you can change your insurance provider if you aren’tsatisfiedwith the service of your health insurance company. The portability feature can be used by policyholders to transfer benefits like an accrued no-claims bonus to the new insurance provider. Policyholders must shift their coverage one month before the date of renewal, that will ensure the documentation formalities are completed on time.
- Affordable Premium
The premium or the amount you pay to the insurer to secure an insurance policy is your investment. If you acquire health cover at an early age, you can make significant savings on premiums. Try and find a balance between a premium that is affordable and has maximum benefits.
- Important Terms
- Pre-existing condition
If the condition exists before obtaining the policy from a particular insurance company, then that medical condition will be excluded from the coverage.
- Sum Insured
The pay-out amount that the insurer is liable to pay to the insured in case of any eventuality is known as sum insured. If the insured sum is Rs.3 Lakh under health insurance and the insured gets hospitalized. Also, his expenses turn out to be Rs.2 Lakh; his insurer will be liable to pay him Rs.2 Lakh.
- Cashless Health Insurance
The settlement of your claims is directly done by your insurance provider and you do not have to pay for your bills or expenses. This feature is called cashless health insurance.
- Waiting Period
When you sign up for a new health insurance policy, there is a certain fixed period after which a few benefits of the policy can work. The usual waiting period for the pre-existing conditions is four years.
When you file a claim, there is an out-of-pocket part of the claim amount that you have to bear yourself before the insurer steps in. The part of the claim is known as co-payment. The percentage of the total claim amount is seen as co-payment.
- Family Floater
A family floater health insurance policy covers all family members as opposed to just an individual. Only one single premium is required to be paid under a floater plan.
To get the best health insurance that suits your needs, you can always compare various policies online. You can also take the help a health insurance calculator.It is an online tool that helps you know the premium amount that is needed to pay for your health insurance premium.