Tips for Health Insurance

Health Insurance has become a necessity in the modern environment of increasing health costs. Below are some essential tips regarding the acquisition of health insurance.

Choose your insurance company wisely – Generally, companies that offer health insurance are either general insurance or life insurance companies. Experts say that it is better to pick a general insurance company over one that offers life insurance. This is because a company that provides life insurance is invested in policies that will reimburse the family members of the deceased, and will not be focused on health insurance.

Plan according to your future needs – One of the most important things to consider while choosing a life insurance plan is to think of the needs that might arise in the future. If you have a family with ageing parents or are newly married and are planning to start a family in the near future, your bet has to be on the policies that will cover aged parents or possibly cover maternity costs.

Choose right amount as ‘sum assured’ – ‘Sum assured’ in simple terms is the maximum amount that a person who is insured can be reimbursed or covered for in one policy year. Basically, it is the base for all your future medical claims. Before you choose the sum assured, take into account the rising medical costs. At the same time, the amount shouldn’t be so high that it would be difficult for you to pay the premium.

Check the empanelled hospitals – Every insurance company has empanelled hospitals, with whom they have a tie up. These hospitals are instructed on how to settle the claims of a patient who has a particular company’s cover. Therefore it is best to check which hospitals are under the insurance company. Checking for their specialty, reputation and distance from your home is important. This is because in case of an emergency you are most likely to visit a hospital closest to your home.

Understand premium calculation process – A premium is the sum you pay to the insurance company while buying an insurance policy. Although the formula to calculate one’s premium usually has a common formula, there are a few factors that may change while charging a premium. Some of the main factors are —  the ‘sum assured’, the number of times you have used the policy and for how much. Talk to your insurance agent about the amount of premium you will have to pay per year and how the company will charge for various services.

Check if the company offers a no claim bonus or discount – If you haven’t claimed any insurance in the policy year, some companies offer either a bonus amount or a discount on the premium in the next year. This is called a ‘no-claim’ bonus or discount. This is a good feature and also an incentive to keep yourself fit and healthy.