Life is uncertain and you never know what happens in the future. So, you must always be ready to face the uncertainties of life. For instance, if you do not protect the health of your loved ones with health insurance, medical expenses can actually wipe out your savings and burn a hole in the pocket.
So, you must never miss out availing health insurance, even if you have Company health insurance cover. When you have a health insurance plan, hospitalization costs are borne by the insurer.
Many people avail a health insurance plan, just to save tax. But, this plan offers much more. There are some things you must be aware of, while availing a health insurance plan. In this blog, we discuss points you should never ignore while availing health insurance plan.
1. Individual Cover vs Family Floater Cover
In health insurance, there are two types of cover. They are individual and family floater health insurance. Individual health plan offers cover to only one person (individual), who is the policyholder. If you wish to cover all your family members, then you must avail separate policies for all the members of the family. On the other hand, family floater insurance policy covers the entire family. The sum assured would be used by the whole family.
Insurers offer both individual and family floater cover. So, before availing the policy, you must understand your family needs and select the right policy. Availing individual policy for each family member is a bad idea vis-à-vis family floater health insurance. However, if one of the family members is prone to illness, it is a good idea to opt for an individual health insurance plan.
2. Sum Insured
While availing a health insurance plan, never overlook the sum assured. You end up paying out of pocket, if you ignore the sum assured. If you live in a metro city, you must select a higher sum assured as medical costs are high, when compared to tier-2 cities.
3. Waiting period
Each insurer has a waiting period for pre-existing and specific diseases. Under this period, the policyholder does not enjoy any benefits of the policy. The waiting period ranges from 2 to 4 years for pre-existing diseases. All health insurers have a compulsory waiting period, a month after availing the plan. In this time period, only accidents are covered.
Insurance plans have certain exclusions. Exclusions are diseases and conditions which are not covered by the insurance company. Before availing the health insurance, you must go through the documents carefully, to know the exclusions. If a specific disease is not covered, you will have to pay out of your pocket in spite of having insurance.
5. Network hospitals
Insurers tie-up with certain hospitals called network hospitals and these hospitals offer the cashless facility. Before availing the policy, you must check the list of network hospitals and opt for the policy which has a large coverage of network hospitals.
Co-pay is a certain amount of money which you have to pay out of your pocket, when you are hospitalized. Co-pay may be mandatory for senior citizens. Co-pay might reduce your medical bills, but it is advisable not to opt for co-pay. On a costly hospitalization, you would end up paying a lot and blow up savings.
See Also: Health Insurance Myths
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