Health coverage is a security net that protects your financial well-being whenever you experience a medical emergency. This policy covers medical costs due to injury, illness, and accidents.
Technically, it’s a contact between a health insurance firm and an individual. This means that the insurance company will bear all or some medical expenses you might incur against the premium you’ll pay. The insurance company can pay for the medical expenses in two ways:
Taking cashless treatment where you don’t need to pay. The insurance pays the healthcare facility directly
You pay the medical expenses first, and the insurance company reimburses the payment later
Why take health insurance
Most people don’t want to purchase health insurance coverage until it gets too late. Even though the intent and awareness to purchase the cover is increasing, it’s still not considered a priority. There is a huge lag between the intent and actual purchasing.
Medical emergencies can happen anytime. If you’re young, the probability of getting sick is low but not zero, and an accident might happen. The medical costs associated with these situations can dig a huge hole in your pocket. So, a good health coverage plan will protect you from the financial blow and offer you the required cushion to bear the expenses for the physician’s visits, medicine, tests, and other processes.
Healthcare costs are increasing at a higher rate than medical inflation. So, health insurance assists you in getting the needed care and treatment without cutting corners for lack of money.
Besides, the premiums you pay are tax-deductible up to the set limit.
Things to consider when selecting your health insurance
Here are some of the important parameters you should consider when selecting your health coverage plan. Make sure you purchase a comprehensive plan that best fits you and your loved ones.
The comprehensiveness of the plan
Choose the sum insured while considering the cost of treatment, inflation rate, and your needs. Re-examine the cover required every year when renewing.
Premium
The premium will depend on various aspects, like the amount of coverage you want, your medical history, age, the kind of plan you want, and more. When assessing the options, go for an insurance company that offers you many benefits and features you need at the best rate. Even though a premium is vital, it shouldn’t be the main decision-making factor.
Understand what is included and what is not.
When choosing a health cover, make sure you check what is included in that policy and what are the T&C under which a claim can be made. Having this clarity will save you the hassle and pain of claim rejection later.
Room rent sub-limit
This specifies the maximum space rent coverage allowed under the health policy. Various insurance companies have rules for the caping and room rent, which are mentioned in the policy document. Before purchasing health insurance coverage, ensure you know how the room rent sublimit works and make better choices. Consider this aspect based on the kind of room and type of hospital you might want to go to.
Network of healthcare centers
Check out the list of the available healthcare facilities under the health insurance policy that offers cashless facilities. Choose a policy with a broader network of hospitals. If you are a frequent traveler, check out the international hospital network.
Co-pay
This is a health insurance clause that lets you lessen your premium when purchasing a health cover by deciding to pay a fixed portion of the total claim amount made during the policy year. If you opt for the co-pay, you can choose a percentage you want to commit from the start.
Waiting duration
This is a time duration during which a claim won’t be accepted. Various policies have various waiting durations. For all claims related to pre-existing diseases, the waiting duration is long. So, choose a policy with the least waiting duration.
Critical disease
Incidents of critical diseases such as strokes, heart attacks, and cancer are always on the rise. Treatment expenses for these life-threatening diseases are incredibly high. So, a US health advisor will tell you to choose a plan that addresses these expenses in case they happen. It comes at an extra cost, so make sure you assess your needs and purchase it if you can afford it.
Day case procedures
Some medical procedures, such as cataracts, are done within a day and don’t need hospitalization. So, knowing if these treatments are covered in the plan is essential.
NCB (no claim bonus)
You get This bonus from your insurer for not making claims during the policy year. This reward can be given as a discount on the subsequent year’s premium or a higher sum insured for a similar compensation. So, make wise choices.
Things a health policy won’t cover
Here are the exclusions for health insurance coverage. But before you decide, research to understand the exclusion because they differ.
- Dental services
- Costment surgery
- Some pre-existing illness
- Non-prescription medication
- Congenital illness
- Injuries caused by suicide, terrorism, and war
Endnote
You might have heard that health is wealth. However, considering the unpredictability of life, beyond lifestyle and good habits, you need money to have good health. According to a US health advisor, health insurance coverage will make it easier to access cash whenever you need it.
Angela Spearman is a journalist at EzineMark who enjoys writing about the latest trending technology and business news.