The life of an individual is of immeasurable value. Impediment, especially, to individuals who are the earning members in the family can lead to serious financial void. Insurance policy is a risk-limiting tool that can mitigate the quantum of loss that the family would face after a loss. Hence, buying a health insurance policy comes with great responsibilities. Health Insurance that provides comprehensive coverage to not only the buyer but also extends to the family and provides add-on covers over and above the individual cover is considered a suitable policy. Health Insurance policies today can be grouped into 3 categories: (i) Term Life Insurance, (ii) Endowment Life Insurance, and (iii) Unit Linked Life Insurance Plan (ULIP). A Term Life Insurance Policy, generally, gets lapsed after the time period the policy expires and no claim is made, whereas an endowment plan provides a lump sum at the end of the expiry period or at the occurrence of the peril. ULIP Insurance policies are a modern way to link insurance and investment products; it provides investment options along with the insurance cover, wherein the onus of risk is on the buyer. Apart from the broad understanding of the insurance policy types, a conscientious health insurance buyer should carefully study the following aspects at the time of searching online for the insurance policy:
- Look for the Policy that Fits the Needs: One must always consider buying an insurance policy even if her employer provides a risk cover. It can happen that the employer’s health insurance policy might not cover your family or some perils related to previous illness. Choose the policy that covers the estimated inflation-adjusted costs of the future. One of the main factors that you should keep in mind is to look for an insurance provider whose claim settlement ratio and the process is much efficient.
- Be Wary of Co-payment Clause: Health Insurance Policy also comes with a clause that mandates the policyholder to bear a predetermined percentage of expenses incurred for the claim made. Be aware of such percentage expenditure that a buyer will have to bear. Also, buying a cheap insurance policy might come with a large co-payment, leading to less comprehensive coverage.
- Be Aware of Hospital Associated Limits and Cover: Health Insurance policies often have some sub-limits on the room allocation during hospitalization, day-care cover, pre/post-hospitalization expenses, et al. While looking for an insurance policy online, you must be aware of coverage on day-care expenditure – a plan that covers maximum number of day-care measures, and coverage on pre and post hospitalization expenditures – a plan that covers expenses like follow-up visits, medicines, et al.
- No-Claim Bonuses: One should always look for No-Claim Bonus (NCB) clause in the insurance policy. An NCB is a benefit the insurance company gives when you do not make a claim for a period, for instance, a year. This added benefit can be availed in the form of a discount on the premium payment or a bonus on the sum assured.
- Other Important Elements to Look For: Health Insurance also comes with different added benefits like Maternity Benefits – always check the waiting period, the sub-limit, and any limits in the clause, Free Medical Checkups, Lifetime Renewal, et al.
Buying Health Insurance can be tricky. You should not fall for cheaper premiums that have comparatively less coverage. It is imperative that a buyer does not hold back any essential information while filling the proposal form as at times such a mistake can void the claim. Bharti AXA provides fortified health insurance at a reasonable cost with a 24×7 claim assistance service.