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Mediclaim policy is a lifesaver! Buy one thoughtfully by avoiding these common mistakes

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Published on May 7, 2021. EST READ TIME: 4 minutes

Medical emergencies, like the second wave of coronavirus pandemic, strike without warning. The rising cost of health care has a negative impact on your financial situation. As a result, having medical insurance for yourselves and your loved ones is critical. Choosing the right mediclaim policy, on the other hand, can be a stressful task. In this section, we will go over the most common mistakes people make when choosing their policy. We will also discuss how to select the best mediclaim policy.

What is Mediclaim Insurance?

A mediclaim policy is a form of health insurance that provides you with financial security in the event of a medical uncertainty. It pays for medical bills incurred as a result of sickness, injury, or surgery. The policy offers two forms of claim options. The first type is cashless claim, and the second is a reimbursement claim.

Benefits-

• Cashless Hospitalisation- The insurance company provides cashless treatment and hospitalisation at their network hospitals. It also covers the costs of diagnostic tests. It also covers day-care expenses.

• Tax Benefits- An individual can avail of a tax benefit under section 80D of the Income Tax Act. Insurance for self, spouse, and dependents entitles one to a deduction of up to INR 25,000. An additional deduction of INR 25,000 is available if you are paying for your parents. Here the age of your parents should not exceed 60 years. The deduction amount rises to INR 50,000 if your parent’s age is above 60 years. Thus, you are eligible for a claim up to INR 1 lakh per year. There are many other medical deductions available under Section 80D of the Income Tax Act.

Common Mistakes People Make While Buying Mediclaim Policy

• Hiding Medical History- People usually conceal their current medical condition as well as their medical history. They hope to gain the benefit of lower medical insurance premiums by doing so. This, however, is considered fraudulent conduct. As a result, the insurance company has the right to reject your claim.

• Underinsurance - To save money, people may underinsure themselves. Furthermore, many individuals purchase medical insurance solely to benefit from a tax break. Nonetheless, this policy should be used to address future medical uncertainties and hence, insurance should always be adequate.

• Misconception - A mediclaim policy is frequently confused with health insurance. Health insurance, on the other hand, is a broader concept. Mediclaim insurance is just one aspect of health insurance. It does not cover dental procedures, STD infections, cosmetic surgery, and vaccinations. It also does not cover non-medical costs, such as administrative charges, service fees, etc.

How to Select the Best Mediclaim Policy

• Coverage- The cost of medical care is unpredictably high. As a result, you should choose a level of coverage that is appropriate for you and your family. However, if you want comprehensive coverage, you must pay a higher premium.

• Network Hospitals- Always go with an insurance provider that has a wide range of network hospitals. This point becomes even more significant when you live in a small town. Knowing a network hospital is crucial because they offer cashless medical services.

• Type of Policy- This policy includes both an individual and a family floater plan. Always consider the size of your family size when choosing your policy. There is a family floater plan available to protect you and your whole family. However, owing to the large sum insured, the premium for a family floater is higher.

• Waiting Period- It is a period of time during which you are unable to use any or all of your medical insurance benefits. The length of the waiting period varies depending on the insurance provider. For certain illnesses, there is often a pre-existing disease waiting period. This duration could range from one to four years of continuous policy. Therefore, considering this aspect becomes crucial.

• Co-Payment Clause- Your insurance company will contribute to the cost of your medical bills under this clause. The policyholder pays a portion of the claim, and the insurance company pays the rest. Thus, to get the most out of your policy, a co-payment arrangement is necessary.

Conclusion

In India, the coronavirus pandemic has raised many questions about our medical preparedness. People understand the importance of having health insurance in case of a medical emergency. As a result, mediclaim policy provides full cashless compensation while in the hospital. If you choose it wisely, it will help you get through difficult times. It not only offers medical benefits, but also allows you to save money on taxes. Under this policy, you may also choose your own hospital. The insurance companies have tie-ups with a wide range of hospitals.

Disclaimer- The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.