Availing a health insurance plan is a must, as medical expenses are increasing day by day. If you do not have health insurance, you will end up paying medical expenses from your pocket. Many people commit mistakes while availing a health insurance plan, simply by purchasing a policy based on price alone. The cheapest policy may not be the best. Apart from the price of the policy, there are many other things to be considered while availing a health insurance plan.
Many insurers have a waiting period for some specific and pre-existing diseases. Pre-existing diseases are those which exist at the time of availing the insurance policy and this will not be covered by the insurer for a certain period of time. The waiting period will be around 2 to 4 years. It is advisable to compare the insurance policies of different companies and opt for the policy with the shortest waiting period.
Go through the policy documents carefully to understand the exclusions of the policy. Exclusions are a set of diseases and conditions that are not covered by the insurance company. Many health insurance policies will not cover injuries that are caused because of attempted suicide and activities like racing. So before availing a health insurance plan, you must compare the different insurances and opt for an insurance plan, which has less number of exclusions.
Before purchasing a health insurance plan, you must have a look at the list of network hospitals. Network hospitals are those which have partnered with the insurance company. You can avail cashless facility in network hospitals. It is advisable to choose an insurance company with wide coverage of network hospitals.
Under the co-payment clause, the policyholder has to pay a certain percentage of hospitalization expenses from his own pocket. For example: If you have opted for 30% co-pay, the insurance company will pay 70% of the hospitalization expenses. Remaining 30% has to be paid by you. Co-pay is not a compulsory component of the health insurance policy. Co-pay will reduce your premium amount, but opt for it only if you can pay your share.
Many insurance companies offer no claim bonus if the policyholder has not made any claim in the previous year. This is provided either by increasing the sum assured or decreasing the premium to be paid. While availing a health insurance plan, you must opt for the company which offers this facility.
Claim settlement ratio of the company is an important factor that must be considered while availing a health insurance plan. You must opt for a company with higher claim settlement ratio, as it means the insurance company is doing a good job.