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While you have decided to purchase a health insurance policy to be financially prepared, the right way of doing it makes the real difference! More so often, people face scenarios wherein claims get delayed or rejected for some reason. It can be due to a waiting period or policy exclusion that they may not be aware of while purchasing the health insurance. 

Well, it becomes your responsibility to understand the health insurance plan in its entirety for making the best use of the investment. Here is a detail of five important things that you need to consider when purchasing a health insurance policy.

Before we step into the details, let us first understand why health insurance is necessary.

Why is Purchasing a Health Insurance Plan Important?

Unexpected medical expenses have been increasing recently, especially after the pandemic. In addition, the changing lifestyle, including unhealthy eating practices, have decreased the immunity levels and increased the susceptibility to various infections. On the other hand, medical expenses and hospitalisation charges are increasing. 

Therefore, a health insurance plan becomes important to cover the pre-hospitalisation and post-hospitalisation expenses. Moreover, it offers cashless claims to enhance your convenience while getting treated. 

With the development of digital technology, you can avail of the health insurance plan online. Moreover, paperless policies are cost-effective and save a lot of your time and energy. So, increase your knowledge, compare health insurance plans and make the best choice exclusively online!

5 Things You Should Consider While Purchasing Health Insurance

Here are five important considerations to focus on while purchasing a health insurance plan.

  1. The insured sum - The sum insured in the health insurance plan is the amount you will receive on a claim registered for the medical expense. Therefore, you must decide on an optimal amount to suffice for the increasing medical costs. You can examine your health condition, analyse the potential risk with the help of a medical practitioner and decide on the right sum assured.

If you have a pre-existing illness or a family history of critical illness, consider the kind of medical expenditures you might incur in the future and decide on the sum assured for maximum protection. You can also opt for add-on riders available with the health insurance plan to enhance the health insurance plan benefits.

2. Waiting period - Knowledge about the waiting period is important to claim the actual benefits. Different types of waiting periods will be included in your health insurance plan:

a. Initial waiting period - It is a period when you cannot make any claims other than accidental injuries from the purchase of the policy. Based on the health insurance plan, it can range from 15 days to three months.

b. Pre-existing illness - In the case of pre-existing illness, there can be a waiting period ranging from 2 to 5 years for the plan to get activated for claim acceptance.

c. Waiting period for critical illness - There are also waiting periods associated with specific diseases based on the type of health insurance plan you choose.

3. Exclusions - There are often incidences when your health insurance claim gets rejected because the registered claim is based on an exclusion mentioned in the terms and conditions of your policy.

For instance, charges incurred for diagnostics, laboratory tests, X-rays etc., can be stated as exclusions in a health insurance plan. Therefore, before purchasing the policy, take enough effort to go through the exclusions to make appropriate claims.

4. Network of hospitals - The primary reason for purchasing a health insurance plan is cashless claims during an emergency or an expected medical treatment. The wider the network of hospitals your insurance provider includes, the better your benefits are.

For instance, Tata AIG, one of the renowned customer-focused insurers, has tied up with 7200+ hospitals across the country to benefit their customers. It will enhance your convenience and the flexibility towards paying the incurred medical expense. You have to inform the customer service executive about your treatment in the hospital, wait for the confirmation letter, submit it to the hospital, and they will ensure the bill is settled promptly.

5. Claim settlement process - You should also ensure that your insurance provider offers a hassle-free and quick claim settlement process so that the benefits reach you as deemed necessary. In addition, you can analyse the claim settlement ratio as a figure that will help you understand the efficiency of your insurance provider. It is the number of claims settled out of the number of claims registered. For example, Tata AIG has a 94.21% claim settlement ratio registered during 2021-2022.

Conclusion

Purchasing a health insurance policy is important to suffice for the financial requirements in the case of any medical expenses. Moreover, it provides cashless claims, reimbursement options and other online features in an emergency. 

However, while purchasing a health insurance plan, you have to examine the extent of the sum insured required, the extent of waiting periods involved, exclusions, your insurer’s network hospitals, and the claim settlement process for maximum benefits at your convenience. So, if you have decided to invest in a health insurance plan, do it right and stay insured! 

 

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