Thinking of getting health insurance? Read this first!

Time to read: 3 mins | March 25, 2017

A health insurance policy is a contract between an insurance company and you as a policy holder. By paying a pre-decided premium amount every year to the company for a fixed term, you and your family members get a protection cover in events of any unforeseen medical expenditure. With health insurance, you ensure that you and your family do not worry about money in an unexpected eventuality. That objective itself makes it an integral component of life planning.

How else will a health insurance benefit you?

• You get healthcare facilities at an affordable rate
• You do not need to delay any immediate medical expenses
• You have access to an extensive network of hospitals and treatment centres provided by the insurance company where cashless facility is available
• Most medical conditions that you have at present also get included within the policy
• Peace of mind if any unforeseen illness or accident occurs
• Considering the rising cost of medical equipment and treatments, having health insurance cover saves you from spending a high amount on medical expenses which can disrupt your finances

What are the various components of health insurance you need to know about?

• Premiums: The periodic payments you make to keep your health insurance policy active. These premiums collectively are used by the insurer to provide cover to the claimant.
• Deductible: The insured is supposed to pay an amount up front depending on the type of insurance. The higher the deductible the lower your premium cost would be.
• Co-insurance: A percentage of the expense incurred on medical care is to be paid by you and the rest is guaranteed by the insurer.
• Co-payment: The amount you must pay out of your pocket before the health insurer pays for the coverage.

What is covered under health insurance?

Your insurance cover pays for the hospital rooms, ICU charges and other treatment charges. Health insurance also covers medical expenses, which may not require 24 hours hospitalization but a simple visit to a medical centre. Your policy provides coverage against critical illness such as heart attack, organ transplants, stroke, kidney failure etc. This may differ from policy to policy.

How to analyse the health insurance products before buying?

• The amount of medical facilities and illnesses that a policy covers
• Its hospital network where cashless facilities are available
• Quality and swiftness of claims resolution
• The amount of premium you pay towards a policy should be value for money in regard to keeping you properly insured without putting a strain on your finances

Buying your health insurance after proper research ensures that the health expenses are covered as per your own requirement and allows you to have peace of mind if any unforeseen illness occurs.