More than 80 percent of financial crisis originate out of a medical emergency and the same can severely damage one’s finances
You can avoid such situations by keeping in mind these nine rules while buying health Insurance online or through an advisor
Rule number 1 -You must have an individual health insurance even if your company offers group health cover.
Corporate cover is not enough because it could
a. Cease once you leave your job or retire
b. Not offer all benefits or
c. Might not cover all family members
Rule number 2 – Choose the right amount as ‘sum insured –
Minimum cover should range between
Rs.3 to 5 lakh in a small city and
Rs. 5 – 10 lakh in a metro
Also, keep increasing your health cover at regular intervals to counter medical inflation
Rule number 3– Ensure your preferred hospital is cashless
Whether it is the hospital closest to your home or the one where your family doctor practices. Ensure that your preferred hospital is an in-network hospital before buying health insurance.
Rule number 4 – Buy a health cover that gives you lifetime renewability.
Lifetime renewability ensures that health insurance provider can’t refuse your policy renewal when you are old and are at higher risk
Rule number 5 – Say no to claim loading.
Claim loading is the amount charged by the health insurance company on your renewal premium when you make claims in your policy
So, if you get a critical illness which requires long term cure then with a claim loading your premiums will keep on increasing and may soon become un-affordable.
Rule number 6 – Buy a policy which gives you a restore limit. Super top up restores your health cover in case you fully utilize your sum assured. It acts as a buffer for unforeseen critical illness
Rule number 7 – Never lie and hide information in your application form. If you have an ailment please make sure you mention it. Most plans will cover pre-existing diseases after 3 to 5 years
Rule number 8 – Be aware of the waiting periods. All health plans have a waiting period for pre-existing ailments. Please see what the waiting period is and try opting for a plan that offers minimum waiting period.
Rule number 9 – Buy a plan with no or minimal sub limit.
There are two kinds of limits that insurers place. On hospital room rent and on specific diseases.
For example, you have a mediclaim policy of Rupees 3 lakh that has a clause restricting room rents to 1% of sum insured. So applicable room rent is 3000 per day
You have to be admitted for 2 days and the General Ward will cost you Room rent of Rupees 1000 per day plus all other eligible expenses coming to Rupees 73,000
But you don’t like the general ward and would like to stay in the twin sharing room which will cost Room rent of Rupees 3500 per day, plus all other eligible expenses Rupees 2 lakh 43000
Now you’d think that insurance company will reimburse Rupees 2 lakh 42000 removing 1000 for the room rent
In reality you’ll only get Rupees 75000. Because the room rent restriction means that all expenses other than room rent will also be restricted. Therefore, always avoid any policy that has any such restriction. Whether for room rent or any specific procedure.