Simplest Guide for Health Insurance in India

General insurance companies offer health policies which are mainly short term in nature. This means, that the health insurance policies can be renewed year after year and the premium amount varies with age.

Health insurance covers offered under general insurance, include mainly hospitalization covers either on reimbursement or cashless basis. The Third Party Administrators (TPAs) mainly offer cashless service as they have arrangements with various hospitals, who are the service providers. The TPAs also help in reimbursement claims.

To read more see Health Insurance by Life and General Insurance Cos

Health insurance needs differ at different ages but the need for health insurance remains. So here is a step by step guide for buying health insurance:

• Read the fine print

Now, that you have decided what you need to buy and from whom, the time comes to actually purchase the policy by paying the premium. But before you do that make sure you have gone through the policy wordings carefully, including the fine print. This includes, the waiting period, information about the coverage of pre-existing diseases, information about the renewal of health insurance policy, room rent limits, information about the reimbursement of pre and post hospitalization expenses, etc.

• Keep a reminder

It is important to keep a reminder of the policy renewal date either on your mobile, your calendar, Outlook, and even tell one of your family members to do the same. This is to keep you from forgetting the policy renewal date, so that the policy doesn’t relapse. If the policy relapses, you would have to buy a new one, which means that your waiting period will start afresh from the new policy.

To know more see Simple Steps to buying a Health Insurance cover!

Buying health insurance when you are young and healthy is a smart option and a necessary one, so go buy yourself a health insurance policy:

• Compare and align Health insurance

Make a chart and mention the various companies offering the plans best suited to your needs, write the policy features against each, and compare the coverage amounts. There may be differences, like while some companies may offer coverage of pre existing diseases after four years, others will offer after two years. Based on your needs, if it’s for senior citizens, you may opt for the two year policy, but then again, you would have to check the other terms and conditions, exclusions and clauses before making a decision. The point is to do your own homework thoroughly.

• Who to buy from?

Once you have zeroed in on the policy you wish to buy, question arises as to whom you buy health insurance from. Should it be directly from the company, the broker or the agent? Well, our take is that, among the three, the broker can be your best bet. The reason is that while the agents may be biased towards their respective companies, brokers can give you an unbiased opinion, explaining the positives and negatives and giving you exhaustive comparisons between the Health Insurance plans offered by different companies.

To know more see Simple Steps to buying a Health Insurance cover!

Yes policy wording is very important. The best way of understanding if a product is good or bad would be by reading its policy wordings and here is where your agent may not be helpful. Most Agents will show you the brochure of the policy which will contain all the positives of the policy and its features. Since an average customer will not ask about the policy wordings, they miss out on knowing what exactly they are getting. It is only after you pay the premium that you get the policy wordings

Health insurance in India is hospitalization insurance that covers the hospitalization costs incurred in India but there are conditions and exceptions. There are numerous exclusions (things not covered) in the policy (OPD, dental, cosmetic, alternative (non-allopathic) treatments, etc.) and a number of waiting periods (Pre-existing -4 years, Surgeries for Cataract, Hernia- 2 years) which you need to know before you buy health insurance policy.

To know more see Things your Health Insurance Agent won’t tell you!

Since your agent represents one Company and can only sell you a product of that Company, he may not tell you that there are better health insurance products available for your needs. He may be:

• Biased: He may push you to buy only his company’s products by positioning his company as better than other health insurance companies.
• Unaware about Health Care: Your agent will not generally have expertise in health care. He will not be the best person to handle your health care claims as he lacks the knowledge to discuss with the health insurance company in case of complicated claims.

Rather than buying health insurance from an Agent, Buy health insurance from a Health Insurance broker who is authorized to sell products from different companies and can compare their pros and cons. A Broker will also be in a better position to handle your claims as he has a better know-how of health care.

To know more see Things your Health Insurance Agent won’t tell you!

When you were buying health insurance policy, your agent kept repeating all your hospitalization charges would be covered. And it is now after your claim was rejected that you discovered the whole concept of exclusions! So here are some things that your health insurance agent may not tell you:

• Since your agent represents one Company and can only sell you a product of that Company, he may not tell you that there are better health insurance products available for your needs.
• Health insurance in India is hospitalization insurance that covers the hospitalization costs incurred in India but there are conditions and exceptions. This is a fact, your Agent may not mention.
• Agent forgets to tell you when you are selecting a product is that your premium amount will change and most likely increase. The two reasons for the increase are- Age and Claims you have made.

To know more see Things your Health Insurance Agent won’t tell you!

Do you think that being in late teens and early twenties is a very early age to think about health insurance? Then answer this- When you can vote, race your bike or car, break rules, stay out late and finally decide what to do with your life, then having Mediclaim at a young age becomes a need too. Here is why you should buy Health insurance:

1.       Use the advantage!

When you want to buy a health insurance policy later in life you find numerous limitations and conditions to face! You will have to undergo a waiting period for pre-existing diseases and the premium will be high. On the other hand, when you buy a policy now, you will have no pre-existing disease, hence mostly all the diseases will be covered.

2.       Your Investment for the future

You may feel that buying the policy at this age will only mean losing that premium money, but actually the cost of the premium is negligible compared to amount that you may have to pay in terms of a hospital bill. Even if you don’t claim for a period of ten years, your investment in health insurance will be a profitable one. Imagine paying Rs. 1200 for 10 years which means Rs. 12000 at the end of the 10 years. On the other hand even a simple hospitalization will come to Rs. 20,000. So in all ways, you will profit.

To know more see Eligible to Vote? Time to Buy Health insurance!

You may feel that buying the policy at this age will only mean losing that premium money, but actually the cost of the premium is negligible compared to amount that you may have to pay in terms of a hospital bill. Even if you don’t claim for a period of ten years, your investment in health insurance will be a profitable one. Imagine paying Rs. 1200 for 10 years which means Rs. 12000 at the end of the 10 years. On the other hand even a simple hospitalization will come to Rs. 20,000. So in all ways, you will profit. This amount will only increase as the inflation in medical industry goes on increasing. Thus, your investment in health insurance will be an investment in the future, more profitable and guaranteed than other investments you can think of!

To know more see Eligible to Vote? Time to Buy Health insurance!

You are lucky that you are young and healthy, but in few years, your muscles are likely to be replaced by flab and your six pack abs by a fat belly. With jobs, responsibilities and stress, there are chances that health will take a back seat and voila, one day, when you want to buy a health insurance policy you find numerous limitations and conditions to face! You will have to undergo a waiting period for pre-existing diseases and the premium will be high.

On the other hand, when you buy a health insurance policy now, you will have no pre-existing disease, hence mostly all the diseases will be covered. For every year you do not claim, you will earn a discount in the premium or even additional cover on your sum insured. This way, when health insurance really becomes a necessity, you will already have it covered! Smart thinking, right?

To know more see Eligible to Vote? Time to Buy Health insurance!

The ailment-specific waiting period

This refers to the number of years one has to wait for treatment of specific ailments to be payable under the health insurance policy. This differs from company to company. But generally, across all companies, during the period of insurance cover, the expenses on treatment of specific diseases and surgeries for specified periods are not payable if contracted during the early currency of the policy.

For instance,

• ENT disorders and surgeries, Polycystic ovarian diseases are covered only after 1 year from the date of commencement of the policy.            
• Diabetes, Hypertension, surgery of Hernia are payable only after 2 years from the date of commencement of the policy.
• Age related Osteoarthritis and Osteoporosis is payable only after 4 years from the date of commencement of the policy.

For this reason it is essential to completely be aware as to treatments for which all ailments are payable and after how many years as per the policy wordings of the company from which you have purchased your health insurance policy.

To know more see Waiting period in a Health Insurance Policy