While medical services are getting better day by day, the hospitalization is getting costlier. The cost of health care is touching the sky, which means that you have to be financially prepared to deal with unfortunate situations and circumstances.
Health Insurance indeed is a life saver “In Literal Sense”, as it helps you pay the medical expenses when you need it the most.
Health Insurance is a kind of insurance coverage, which covers the cost of your medical and surgical expenses, based on the health insurance coverage you have invested in – i.e. either the company pays the bill directly or you are supposed to pay out of your own pocket, which is reimbursed by the insurer later.
There are many family health plans that you might like to invest in. Unlike an individual plan, a family plan gives insurance coverage to the entire family.
This also means that anyone in the family can claim the benefit, in case of hospitalization and/or surgical expenses.
In this plan, more than one member of the family can avail the benefit of the plan simultaneously.
Just like you pay for the individual plan, you need to pay a premium for the family floater plan.
If you avail individual policies for every member of the family, it turns out to be more expensive.
Getting the Best Health Insurance Plan for You and Your Family
It entirely depends on the family member you are willing to cover and the use of the policy. Here are a few tips that can help you purchase the best health insurance plan for you and your family:
Who are you buying for?
If it is for your spouse and a maximum of up to 2 kids while your spouse and you are below 45 years of age, then go for a family floater health insurance plan.
If you are trying to cover your parents, who are above 60 years of age, then do not try and bundle them in the same plan as you or your nuclear family.
The calculation of the premium for a health insurance policy is based on the age of the eldest member if your family.
The premium goes up by 100% for people above 50 years as compared to someone who is say 35 or 40 years old.
Therefore, cover your parents separately. Plans that are meant for slightly older ages make more sense.
The Amount of Coverage You Need
It is very tough to decide what the ideal amount of coverage one should have. So, here are some questions you need to answer:
1. Do I want insurance to cover all possible expenses?
Can I find something from my savings or self-insurance? Can my employer-provided insurance fund some parts?
If you have a low cover from your company, i.e. up to 2 Lakhs, then do not rely on that cover because when you switch your job or start your own venture, you might need health insurance to control any situation.
What do medical emergencies cost today and how much will it cost five years from now?
Medical inflation in India is about 15%. So, if you calculate in 5 years, the cost of medical procedure would nearly double.
Remember that your health insurance should be able to pay your expenses for the next five years at the least.
2. What Else Should You Look At?
Room Rent Limit – This feature causes the maximum distress for those who buy health insurance.
The funny part is that hospitals’ charges are in package rates, which means that the cost of surgery or treatment under the observation of the same doctor at the same hospital may go up by 40-50% depending on whether you choose a shared room, a private room, an AC room, or a Suite.
The Solution: Seek out plans that have no limit on room rent. You can easily find many these days.
Claims Settlement Record – It is depressing to go with a company that does not respond when you need it the most.
Look at the percentage of claims it reject and how many it settles each month. Many companies at this juncture would fall off your consideration list.