For the most part, health insurance plans remain a topic of passing discussion rather than serious engagement for a majority of the country’s population. Insurance itself has found a bad name, primarily due to the misleading selling tactics employed by agents and sub-agents.
However, that does not minimize the usefulness of health insurance plans. In fact, in a time when medical treatment costs are rising, health insurance is your only saving grace. But given the amount of misinformation and unawareness in the market, it can be hard to believe. So, here are some of the most important facets of health insurance which you need to know today.
Why Is Health Insurance Important For You
Health insurance is not the same basic bare skeleton insurance that used to exist a decade back. In fact, it has evolved to cover almost all health-related aspects of a person’s life and provides protection in the same manner.
#1 Financial protection
Any kind of hospitalization can be expensive. The best hospitals and medical institutions today make use of technologically advanced machinery. As such, specialised treatments which require more than 24-hours of hospitalisation have slowly become more expensive. For most citizens, a sudden hospitalization can be a shock to their bank account. In such cases, health insurance plans offer insulation from financial setbacks and let you take care of your family without any worry.
#2 Helps get immediate treatment
In planned as well as unplanned hospitalisation, there is a minimum amount of payment required to have the patient admitted. Securing funds on an immediate basis can become a big headache and often drives a person to borrow from friends and family. A health insurance policy protects your dignity and your family’s health with cashless service. It does not require you to make any payments upon admittance and lets your loved one get treatment as soon as possible.
#3 Covers expensive treatment procedures
Current health insurance plans offer coverage for specialized treatments like domiciliary hospitalisation and day-care procedures which otherwise would have been expensive. Older health insurance policies only provided cover when there was at least 24-hour hospitalization. However, current policies offer protection against costs arising out of domiciliary treatment (specialized treatment at home) and several day-care procedures (treatments which do not require 24-hour admittance).
#4 Provides compensation when incapacitated
Whether injured in an accident or rendered immobile, temporarily disabled or permanently disabled from other conditions, your monthly income is bound to be affected. In order to protect you such loss of income, the best health insurance plans in India, offer compensation tantamount to the disability. This compensation helps you take care of other expenses while recuperating from your condition.
#5 Offers support for critical illnesses
No one can predict if and when you’re diagnosed with critical illnesses like cancer. But what do you do when you are? How do you arrange for the funds for your treatment? That’s why a health insurance policy is important. The best health insurance plans in India offer protection against multiple critical illnesses. Upon diagnosis of any of these illnesses, the insurance company pays out a lump sum which can be used for treatment.
How To Calculate Premium For Health Insurance Plans?
There are multiple factors which are taken into consideration when calculating health insurance premium. Some of them have been discussed below:
The age of the oldest member of your family, in case of floater policy and age of the individual in case of individual policy, needs to be provided. The age helps insurance companies understand the mortality rate, the probability of diseases, etc.
Tobacco consumption is one of the main criteria in insurance premium. Since a large percentage of the population consumes tobacco in one form or the other, it is a default declaration that needs to be provided. Non-tobacco users are likely to pay a lesser amount due to the lower probability of certain diseases as against serial tobacco users.
The place of residence or the city plays an important role in calculating the premium. Based on the city of residence, an estimate is created regarding the costs arising out of treatment. For example, medical treatment for a certain procedure is likely to be more costly in Mumbai, than in Kolkata. Similarly, Tier 2 and Tier 3 towns are likely to have lower medical costs. As a result, the city of residence affects the premium price.
Number of members
The total number of members to be covered by the policy needs to be explicitly mentioned including the number of dependents, children, and adults.
While these factors are known, the computation can only be done on premium calculators. To get health insurance plan quotes or check out the premium on various policies, visit comparison and insurance aggregator sites like Coverfox.com.