Every other day, we hear news about some famous personalities suffering from a disease once thought to be rare. We hear information about newly emerging diseases that claim hundreds of lives. A sudden change in the air gives rise to a new condition, and hundreds of people are hospitalized. However, only one thing that works as your savior in these testing times: your health insurance policy. Your health insurance policy offers you coverage worth lakhs of rupees. But there are a few things you must consider before purchasing it.
Understand your needs: Most people purchase policies based on the low premium. This is a wrong practice. While your premium amount is important, you should understand that inadequate premium policies do not offer much coverage. You need to be aware of the policy you purchase. If you have a family history of certain medical conditions (cancer, for instance), you should also buy a critical health care policy and your regular one.
Please don’t wait to fall ill or get old: A common mistake most people make is not purchasing health insurance until they get sick or old. While you do not become eligible for instant coverage in either circumstance, the premium costs also increase. Remember that your age, health issues, premium costs, and coverage are interlinked. You will end up paying a higher premium, and the coverage offered will also be lesser if you purchase a policy after falling sick or getting old.
All policies are not the same: Reading your policy documents before purchasing them is important, as all health insurance policies differ. Some plans may cover accidents; others may not. You need to check if your policy covers critical or terminal illnesses like cardiovascular diseases, cancers, tumors, etc., because many policies exclude such illnesses. As such, you must carefully read the fine print and the terms and conditions before purchasing a policy.
Consider the settlement ratio: Your health insurance policy does not mention the settlement ratio, which refers to the insurer’s amount against your claims. Your policy will typically mention the percentage of the settlement ratio, but it is better to ask your insurer to explain it. Remember that your claim settlement time is also affected by the settlement ratio, and a high settlement ratio means your claim will get settled faster.
Consider the co-pay ratio: Most health insurance policies mandate that the policyholder must bear a pre-defined percentage of the claim. In contrast, the insurer takes the remaining costs. This means that you must pay a small portion of the charges in addition to the premium you are paying. When you begin comparing policies, ensure you choose one which has the least co-pay ratio.
