5 things to consider when buying a health insurance policy

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While you’ve decided to purchase health insurance to be financially prepared, the right way to do it makes all the difference! More often, people are faced with scenarios where claims are delayed or rejected for some reason. This may be due to a waiting period or an exclusion in the policy that they may not be aware of when purchasing the health insurance.

Well, it becomes your responsibility to understand the health insurance plan in its entirety to get the most out of the investment. Here is a detail of five important things you need to consider while buying a health insurance policy.

Before going into details, let’s first understand why health insurance is necessary.

Why is buying a health insurance plan important?

Unforeseen medical expenses have increased recently, especially after the pandemic. Additionally, lifestyle changes, including unhealthy dietary practices, have decreased immunity levels and increased susceptibility to various infections. On the other hand, medical expenses and hospitalization costs are increasing.

Therefore, a health insurance plan becomes important to cover pre-hospitalization and post-hospitalization expenses. Moreover, it offers cashless claims to improve your comfort while getting treatment.

With the development of digital, you can benefit from mutual insurance online. Moreover, paperless fonts are cost effective and save you a lot of time and energy. So, deepen your knowledge, compare mutuals and make the best choice exclusively online!

5 things you should consider when buying health insurance

Here are five important considerations to focus on when shopping for a health insurance plan.

  1. The sum insured – The face amount under Medicare is the amount you will receive on a registered claim for medical expenses. Therefore, you need to decide on an optimal amount to suffice the rising medical expenses. You can examine your health condition, analyze the potential risk with the help of a doctor and decide on the right sum insured.

If you have a pre-existing condition or a family history of critical illness, consider the type of medical expenses you may incur in the future and decide on the sum insured for maximum protection. You can also opt for additional riders available with the health insurance plan to enhance the benefits of the health insurance plan.

  1. Waiting time – Knowledge of the waiting period is important for claiming actual benefits. Different types of waiting periods will be included in your health insurance plan:
    1. Initial waiting period – This is a period during which you cannot make any claims other than accidental injury from the purchase of the policy. Depending on the health insurance scheme, it can range from 15 days to three months.
    2. Pre-existing disease – In the case of a pre-existing condition, there may be a waiting period ranging from 2 to 5 years for the plan to be activated for the acceptance of the claim.
    3. Waiting period in case of serious illness – There are also waiting times associated with specific illnesses depending on the type of health insurance plan you choose.
  2. Exclusions – It often happens that your health insurance application is rejected because the registered application is based on an exclusion mentioned in the terms and conditions of your policy.

For example, costs incurred for diagnostics, lab tests, X-rays, etc. may be listed as exclusions in a health insurance plan. Therefore, before purchasing the policy, make sufficient effort to review the exclusions to make the appropriate claims.

  1. Network of hospitals – The main reason for purchasing a health insurance plan is cashless claims during an emergency or scheduled medical treatment. The larger your insurer’s network of hospitals, the better your benefits.

For example, Tata AIG, one of the renowned customer-focused insurers, has partnered with more than 7200 hospitals across the country for the benefit of their customers. This will improve your comfort and flexibility to pay for medical expenses incurred. You should tell the customer service manager about your hospital treatment, wait for the confirmation letter, submit it to the hospital and he will ensure that the bill is settled promptly.

  1. Complaints process – You should also ensure that your insurance provider offers a quick and hassle-free claims process so that benefits reach you when needed. Additionally, you can analyze the claims payout ratio as a number that will help you understand the efficiency of your insurer. This is the number of claims settled over the number of claims recorded. For example, Tata AIG has a claims settlement rate of 94.21% recorded in 2021-2022.

Conclusion

Purchasing a health insurance policy is important to meet the financial needs in case of medical expenses. Additionally, it provides cashless claims, refund options, and other online features for emergencies.

However, when purchasing a health insurance plan, you should consider the extent of the sum insured required, the extent of waiting times involved, exclusions, hospitals in your insurer’s network, and the claims process for maximum benefits at your convenience. So, if you have decided to invest in health insurance, do it well and stay insured!

Disclaimer: This is a company statement. No HT journalists are involved in the creation of this content.

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