The pandemic has been an eye opener for many, especially when it comes to having a health insurance policy. Not many people knew that their health insurance policy may already cover treatment for COVID-19. Therefore, choosing the right health insurance policy from the outset is of the utmost importance to reap the benefits of this safety tool, especially during such medical requirements. However, most first-time buyers are not used to the lingo or features and may not know how to go about purchasing the right health insurance policy that fits their needs.
The checklist below will help you make an informed decision and buy an appropriate policy.
1. Buy when you are young
I firmly believe that one should buy a health insurance policy when one is young because your age is one of the important factors that determine the premium of your policy. A contract taken out at 30 years will be cheaper than when you take it out at 50 years. The cumulative bonus (BC) accumulated at a young age allows for higher coverage without additional premium on this BC amount and also covers sickness / illness during this trip to an older age, as received after the creation of the police. The older you get, the more susceptible you are to disease. While age isn’t the only factor that determines your premium, it’s always best to buy the policy earlier to avoid premium loading, pre-existing conditions, etc. Not that you can’t buy a policy when you’re old, but then it’s good to buy it early and stay covered.
2. Choosing the right coverage – Adequacy of face amount and policy coverage
Understanding your needs when choosing a health insurance policy is very important as this will help you choose the right coverage. You may already have Group Medical Coverage (GMC), but is it enough for you? Do you want to take out an individual contract so as not to be dependent on your employer? Do you want to enrich your coverage by opting for a super complementary policy to your indemnity policy or to a GMC coverage? Asking yourself such questions will help you know what you need, leading you to purchase suitable coverage. If in doubt, you can always turn to the insurance company who will guide you in purchasing a health insurance policy that meets your needs.
3. Background check
Always check the background of the insurance company they are considering purchasing insurance with. Knowing their offerings, their networked hospitals and their digital process to facilitate transactions will help to better understand the business. Do your research on various companies, their offerings, the services provided, their position in the market and choose the policy accordingly. Price should not be the only dominant consideration in choosing health insurance coverage.
4. Browse the terms and conditions of the policy
Health insurance policies have certain terms and conditions which mention the things that are covered and excluded under the policy. It is important to consider the waiting period, coverage for pre-existing illnesses, room rental clause, welfare benefits, sub-limits, etc. before purchasing a policy. This will ensure that if you purchase the policy you will not be caught off guard at the time of the claim in the event that a particular thing is not covered.
With the rise in medical inflation, it is important to purchase an appropriate health insurance policy to avoid financial loss. Make an informed choice from the start, analyze and understand the coverage, and thus buy your first health insurance contract. This will give you peace of mind and you can focus on restoring health rather than worrying about paying hospital bills.
5. Several health insurance products:
There are several health insurance coverages available in the market and should be purchased in combination to improve financial security and bring more well-being to the family. Policies that cover Critical Illness and Hospital Cash add to the benefit of the long-term insured, providing additional support at an affordable premium.
(Expert commentary from Gurdeep Singh Batra, Head of Retail Underwriting, Bajaj Allianz General Insurance)