Health insurance policy is the essential insurance plan that every individual should have. The number of illnesses and new diseases has increased to a great extent. Not everyone has the money to pay for the medical charges. In such situations, a health insurance policy protects the insured person from uncertainty and medical expenses.
Read through the article to know more about how to choose a health insurance policy.
What is a health insurance policy?
Health insurance is the coverage that the insured person gets against medical expenses. There are a number of factors that determine the policy plan and cost. But the most important aspect is learning how to buy a health insurance policy.
The next part of the article will list the number of things to consider in relation to health policy. And simple steps on how to choose health insurance?
5 tips for choosing the best health insurance policy in India
Here the article will talk about five essential tips for choosing the health insurance policy. The tips mentioned here are simple and effective. These tips will help a person learn how do I choose medical claim or health insurance policy.
Co-pay or deductible clause of the policy:
The foremost tip that helps a person in how to buy health insurance policy is reading the above clause. Co-Pay or Deductible clause is an important part of the policy. This clause of the health insurance policy tells the insured his share in paying the medical bills.
Co-pay means the insurance company bears only a part of the medical expenses. This means the remaining payment is to be done by the insured out of his pocket. The range of co-share varies between 10-30 per cent. Look for an insurance policy with less co-pay per cent to get more benefits.
Additionally, there is another clause in the insurance policy called the deductible. This clause is similar to the co-pay. But the only difference is that the deductible clause is defined as a fixed payment. Suppose say the clause in the policy fixes 20,000 as the deductible amount. Then in case, a person incurs medical expenses of 30,000 then the insurance company will pay only 10,000 rupees.
Pick the sum insured appropriately to the age of the insured person
The next tip for how to choose a health insurance policy is the age of the insured. The sum of the insurance policy should be in appropriation with the age of the person. A young age person has less risk of contracting diseases than an aged person. So keep the sum insured amount less for young people.
And for aged people the sum insured increases. This is because the aged people are at higher risk of contracting diseases and illness than young people. Therefore, it is advisable to get an insurance policy at a young age with good benefits at reasonable premiums.
Compare the quotes of the policy
The cost of a health insurance policy is not fixed. Factors such as age, gender, medical history and employment of a person come into play. Yet, it is advisable to compare the health insurance policy quotes online and offline before purchasing.
Look for policies at an affordable price that caters to the needs of an insured person.
Renewal of the health insurance policy
The fourth tip for how to buy health insurance policy is the maximum renewal –age. Usually, the health insurance policies that are available in India are valid for one year. The premium that you need to pay for the health policies is also not cheap. Hence look for health insurance policies that allow the insured to renew for a longer duration.
Settlement ratio of the insurance policy
The last and most important tip for how do I choose medical claim policy is the settlement ratio. Here, the settlement ratio means the number of policies an insurance company has settled. The ratio is calculated by considering the total health insurance claims received by the company.
It is strongly advisable to choose an insurance company that has a high settlement ratio. The company with a high settlement ratio shows its performance. It also shows the attitude towards customer satisfaction.
Bottom Line
This concludes the article on how to choose a health insurance policy. As previously mentioned, health insurance policy is a must for every person. But at the same time, choosing the right policy is tough with the choices available. Don’t get overwhelmed when picking a health insurance policy and plan. Instead, opt a health insurance policy by following the tips mentioned here.