The right health insurance plan can protect you from the financial burden of health emergencies. It is important for you and will safeguard your family during unforeseen circumstances. While most understand the same, their preconceived notion makes them err when choosing a health insurance plan. The shortsighted approach of finding a plan with the lowest premium even that compromises one's coverage is very much common in the health insurance segment. Whereas some understand the difference between various health insurance plans. What comes as a result is inadequate coverage and sometimes inflated premiums. Let's not insecure ourselves with all these. This article contains vital details on how to choose the best health insurance plan. But before delving deep into the core focus of this article, let's understand why the right health insurance is important and debunk some common myths about health insurance.
Why is the Correct Health Insurance Plan Important?
One of the most important realisations a lot of people had after the recent outbreak of the deadly Coronavirus is that life is very uncertain and that one should always be financially prepared to tackle any unfortunate situations. In a world where new diseases are forming every day, and the skyrocketing cost of healthcare is making it hard for people to afford proper treatment, it's important to invest in a health insurance plan that keeps you covered during difficult times.
By opting for a health insurance plan, you can pay for your medical illnesses and that of your loved ones without having to worry about your financial future. The cost of medical treatments is rapidly increasing, so it's a must to buy health insurance. In this article, you will find all you need to know about health insurance plans and how to choose the right one for yourself and your loved ones.
Some Common Health Insurance Myths
Countless misconceptions about health insurance plans grow from a lack of understanding. Read on to know the reality behind some of the most common myths about health insurance.
Myth 1: A Cheap Policy Implies the Best Policy
Fact: Many think spending as little as possible on health insurance plans is smart. Hence, they opt for health insurance plans with the lowest premium. Instead, focusing on the aspects of a health insurance plan will help you get the right coverage to deal with medical emergencies. Once you find a plan that caters to your needs, compare health insurance policies online using a health insurance premium calculator.
Myth 2: It's Not Safe to Buy Health Insurance Online
Fact: Online health insurance is the future of health insurance, and many people prefer it nowadays because it's easier to make decisions. No insurance agents are involved, and you don't need to submit loads of documents for this procedure. To avoid unfortunate experiences online, make sure to read all the documents related to the policy carefully and only trust notable insurance companies.
Read more - How safe is buying health insurance online?
Myth 3: Insurance is a Waste of Money if You're Young and in Good Health
Fact: The truth is that the ideal time to buy health insurance is when you are young and healthy. Renowned companies like Paytm Insurance can help you get affordable premiums when you apply early because the chances of getting hospitalised are very low at that time.
Myth 4: Health Insurance Benefits Become Void When You Renew Them After the Due Date
Fact: Health insurance renewal is a must every year before the due date to keep the continuity of the plan. But it's not the end of the world if you somehow fail to renew the plan. You still get the chance to continue the plan within 30 days of the expiry date of the health insurance policy. All your health insurance benefits will be retained after the renewal.
Types of Health Insurance Plans
Now that all the myths have been debunked, it's time to know more about the types of health insurance plans you can choose to narrow down the best one for you.
Individual Health Insurance
As the name suggests, this health insurance plan covers a single person, but the policyholder can add another member by paying an extra premium. The premium for individual health insurance plans is higher compared to family floater health insurance plans for comprehensive coverage and other benefits.
Family Floater Health Insurance
The family floater health insurance plan is for all the members in a family, including dependent members. The coverage is very similar to individual health insurance. Still, the only difference is that this sum will cover all the insured family members under a single sum insured.
Critical Illness Insurance
For life-threatening diseases like cancer, paralysis, etc., a critical illness insurance plan is ideal because it will adequately cover the cost of treatments, including chemotherapy, hospital visits, and others. The policyholder also receives compensation in case of loss of income.
Read more - Homework to Do Before Choosing the Best Critical Illness Insurance Plan
Senior Citizen Health Insurance
Senior citizen health insurance is created for those individuals who are 60 years of age. The premium for this insurance plan is also higher than other plans, but it ensures utmost safety during medical emergencies.
Personal Accident Insurance
A personal accident insurance policy covers medical expenses that occur due to accidents. Individuals also receive compensation if they get partial or permanent disability from that accident.
Read more - Personal Accident Cover or Health Insurance
How Can You Choose the Right Health Insurance Plan?
Many individuals opt for health insurance plans just for the sake of it. They don't broadly discuss the plan they've chosen with experts or do their own research. This way, when medical emergencies occur, they usually fail to use the health insurance plan wisely.
Everyone must have the 'right' insurance plan because each person has different demands. Here's how you can choose the right health insurance plan to safeguard yourself and your loved ones during medical emergencies.
Assess the Premium Amount
First, check the amount the health insurance plan requires as a monthly premium. You can use a health insurance premium calculator to assess the premium amount accurately. Don't just opt for cheaper health insurance plans because the premium is low. Instead, check what the plan offers; if it's enough to safeguard you during tough times, you're good to go. Experts highly recommend spending 50% of the total annual income on health insurance plans to get proper coverage during medical emergencies.
Check the Plan's Terms and Conditions
Before finalising your decision, don't forget to know all the necessary information about different types of health insurance plans. Make sure to consider what kinds of benefits you want in your insurance plan, as it will make the shortlisting process easier. For example, if you're looking for a health insurance plan that will cover all your family members at an affordable rate, it's best to opt for the family floater health insurance plan. To cover elderly parents, it's best to opt for senior citizen health insurance. Read all the terms and conditions and all the related documents of the health insurance policy carefully and discuss with an agent if needed.
Assess the Inclusions and Limitations of the Plan
Every health insurance plan has some key benefits as well as some limitations. And to finalise your decision, you must know about both sides of the plan. Check the limitations and see how those can affect you later on. Similarly, know what is included and what you might like to add on to ensure better coverage and security to get you through tough times.
Check the Hospitals Covered Under the Plan
This is a part that generally gets ignored by many applicants when choosing the right health insurance plan. All health insurance companies have empanelled hospital networks. When medical emergencies occur, everyone looks for the closest hospital where they can go for treatment. But there, you won't get cashless health insurance benefits. You will need to pay for the treatment before filing a reimbursement claim with the insurer. In case you don't have much to cover the treatment cost, you might not feel good going to the closest hospital, which is not on the list of network hospitals, for treatment. So, before you opt for cashless health insurance, check all the hospitals listed in the policy document. Ensure that the hospitals listed in the plan are close to your home.
Study the Different Types of Health Insurance Plans
Before you start, don't forget to know all the necessary information about the different health insurance plans. Make sure to consider what benefits you want in your insurance plan, as it will make the shortlisting process easier. For example, if you're looking for a health insurance plan that will cover all your family members at an affordable rate, it's best to opt for the family floater health insurance plan. To cover elderly parents, it's best to opt for senior citizen health insurance.
Be realistic about the sum of money you are opting for. Experts highly recommend spending 50% of the total annual income on health insurance plans to get proper coverage during medical emergencies. Before finalising your decision, ensure you know everything about the plan and the sum you will be assured of to avoid unfortunate situations later on. Read all the health insurance policy documents carefully and discuss with an agent if needed. All health insurance companies have empanelled hospital networks. So, before you opt for health insurance, check all the hospitals listed in the policy document.
Read more - Top 10 Health Insurance Companies in India
Conclusion
Opting for the right health insurance early on in life is one of the best decisions you can make for yourself and your loved ones. It's always better to stay safe than sorry, so if you're still thinking about whether you should go for health insurance or not, take this article as your sign. Choose a health insurance policy based on your needs, and you will not regret it.
