Moneycontrol
Last Updated : Sep 24, 2018 02:59 PM IST | Source: Moneycontrol.com

Financial prescription: 5 tips to keep in mind while buying a health insurance plan

Putting aside a nominal sum of money to safeguard against unforeseen maladies could prove to be, both, a lifeline, as well as a good investment.

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Health insurance has become a necessity in today’s times. People are living longer than their forebears thanks to advancements in medical science. However, lifestyle diseases plague a large section of the population. The scourge of our age could put millions at risk of contracting serious ailments. The cost of accessing quality healthcare has also risen over the years. Putting aside a nominal sum of money to safeguard against unforeseen maladies could prove to be, both a lifeline, as well as a good investment. The ideal sum depends on various factors such as age, income, family size, and domicile. A clean bill of health need not burn a hole in one’s pocket. Here are a few tips to keep in mind picking health insurance plans.
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Health insurance has become a necessity in today’s times. People are living longer than their forebears thanks to advancements in medical science. However, lifestyle diseases plague a large section of the population. The scourge of our age could put millions at risk of contracting serious ailments. The cost of accessing quality healthcare has also risen over the years. Putting aside a nominal sum of money to safeguard against unforeseen maladies could prove to be, both a lifeline, as well as a good investment. The ideal sum depends on various factors such as age, income, family size, and domicile. A clean bill of health need not burn a hole in one’s pocket. Here are a few tips to keep in mind picking health insurance plans.

Buy as early as possible | It is a great decision to buy personal health cover early on in life as consumers can serve their waiting periods when they are still in the best of health and utilize the policy when it is needed. Nothing in life seems certain, and it is better to be insured under all circumstances.
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Buy as early as possible | It is a great decision to buy personal health cover early on in life as consumers can serve their waiting periods when they are still in the best of health and utilize the policy when it is needed. Nothing in life seems certain, and it is better to be insured under all circumstances.

Check room-rent capping | The room rent limit should be as high as the claim reimbursement would be, as per the hospital room rent limit. For example, consider the scenario where a patient is admitted for two days in a hospital room where the rent charge is Rs 6,000. If the room rent limit is Rs 5,000 a day, the increase in rent is 20 percent. Suppose the total cost of hospitalization is approximately Rs 1, 00,000. The difference between the limit and the actual room rent will have to be footed by the patient. In this case, it will amount to Rs 20,000.
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Check room-rent capping | The room rent limit should be as high as the claim reimbursement would be, as per the hospital room rent limit. For example, consider the scenario where a patient is admitted for two days in a hospital room where the rent charge is Rs 6,000. If the room rent limit is Rs 5,000 a day, the increase in rent is 20 percent. Suppose the total cost of hospitalization is approximately Rs 1, 00,000. The difference between the limit and the actual room rent will have to be footed by the patient. In this case, it will amount to Rs 20,000.

Waiting period for pre-existing diseases | Insurance companies generally exclude pre-existing conditions for a certain period. The period may depend from one insurance company to the other; it is typically between two-four years. One should buy a policy which has a reduced waiting period.
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Waiting period for pre-existing diseases | Insurance companies generally exclude pre-existing conditions for a certain period. The period may depend from one insurance company to the other; it is typically between two-four years. One should buy a policy which has a reduced waiting period.

Increase you cover over time | Keep increasing the cover on a regular basis so that it is in line with rising medical expenses. Due to medical inflation, insurance companies guarantee a 10 percent increase in the sum insured at the time of renewal. (Representational image)
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Increase you cover over time | Keep increasing the cover on a regular basis so that it is in line with rising medical expenses. Due to medical inflation, insurance companies guarantee a 10 percent increase in the sum insured at the time of renewal. (Representational image)

First Published on Sep 22, 2018 05:54 pm
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