Knowledge Centre

What Should You Know Before Buying a Health Insurance Policy in 2019 ?

The sole purpose of buying a health insurance policy is to get protection in times of financial distress. A health insurance policy takes care of all your medical requirements at the time of hospitalization. With a plethora of health insurance policies available in the market, choosing the right health insurance plan can be a daunting task. So before you invest in a health insurance policy this year, read on the things you should know to make an informed decision.

Know about the co-pay clause: Blindly buying a health insurance policy would make you eligible to bear the medical expenses out of your pocket. Since the purpose of a health insurance policy is to procure maximum coverage for all the health-related expenses, but not understanding the role of co-pay can lead to the opposite of the latter. There is a reduction in premium if one opts for co-pay. However, opting for a co-pay clause in a health insurance policy would mean that you will have to bear a part of medical expense from your pocket, while the rest would have to borne by the health insurer.

Sub-limits: This simply means that the coverage offered under the policy would be limited up to a specific amount. This limit could be on the room rent, consultation fee, pre and post hospitalization expenses, maternity cover, etc. Hence, for example, if the sub-limit on your room rent is Rs. 5000 and you are hospitalized in a room having a daily rent of Rs. 6000, then the sub-limit clause would mean you bearing the additional proportionate charges for your treatment. Hence, always opt for policy with minimum or no sub-limit.

Know about the waiting period: Health insurance policies come with a waiting period under which you cannot claim for specific diseases such as Osteoarthritis, Piles,  Sinusitis and others for at least a period of 2 years. Hence, it is imperative you read and understand the various waiting periods in  a health insurance policy.

You can cover your family: If you want to cover your spouse and kids under a health insurance plan then you can opt for a family floater health insurance that offers you coverage under the same umbrella. You can also extend the coverage to your parents as well as in-laws. Unlike individual health insurance, the family floater plan covers all the members of the family within a common sum insured. Also, the premiums for this plan do not have to be paid separately. However, it is important to know that the premium of a family floater plan is generally decided on the basis of the age of the eldest family member.

You can opt for critical illness cover: Along with your health insurance policy, you can opt for a critical illness cover that provides you with a lump sum amount on diagnosis of critical illnesses covered under the plan. This plan offers cover against the diagnosis of illnesses such as cancer, kidney failure, stroke and others as the medical expenses for treating such diseases can go up to lakhs.

Benefits of health insurance

With a health insurance plan, you can avail tax benefits of up to Rs. 50,000 under section 80D of the Income Tax Act, 1961.

Few health insurance plans offer you free medical check-up after a certain number of claim free years

The health insurance policy covers your pre and post hospitalization expenses

With a health insurance plan, you can avail cashless claim service i.e. at the time of hospitalization, you would not be required to pay a single rupee.

Health insurance policies shield you against the rising medical expenses and instances of diseases.

Few health insurance plans also come with an in-built maternity cover, critical illness cover as well as hospital cash cover.

  • With the rising medical costs and lifestyle-related ailments, having a health insurance policy helps.

Though your health insurance policy may not generate any returns, it can certainly save you from sudden and unwanted medical expenses. Hence, if you haven’t purchased a health insurance policy yet, then it’s time you do so now.

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

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