However, before buying a health plan, it’s important to know its basics so that you can make an informed choice and avail the maximum benefits out of your policy. This article will help you understand the most basic things about a health insurance policy. Let’s get started.
- Premiums The premiums of a health insurance policy are calculated on the basis of certain factors such as age of the insured person, pre-existing ailments, sum assured, co-pay clause etc. You should buy a health plan as early as possible to get it at the lowest price. Also, you can opt for higher deductibles to reduce the premium amount.
- Coverage A health insurance policy usually provides coverage against all types of medical expenses, planned or unplanned, that you may incur. These include doctor’s consultation fees, ambulance charges, hospitalisation charges, room rent, day care charges, and costs of diagnostic tests, medicines, medical equipment etc. At network hospitals, you can avail cashless facility on these coverages.
- Eligibility The eligibility criteria for a health insurance policy is not fixed and it depends upon the insurer. Usually, the minimum entry age for buying a health plan is 18 years whereas, the maximum age is 65 years. The policy can or cannot be subjected to lifelong renewability, depending upon the insurance provider. To renew your policy, you’re required to pay an annual premium every year.
- Sum assured The sum assured is the maximum amount of coverage that you can claim on a health insurance policy. You must choose a policy offering a high sum assured to ensure adequate protection or yourself and/or your family members. As per the insurance regulatory body of India, the minimum sum assured under a health insurance policy should be Rs. 1 lakh.
- Types of policies Basically, there are two types of health insurance plans – individual health plans and family floater plans. If you want to buy a separate health policy for yourself, you can go for an individual plan. However, if you want to buy health insurance for your entire family, it’s better to opt for a family floater plan since it will help you to get the same coverage at lower premiums.
Usually, the health insurance premiums have to be paid annually. However, some insurers also provide long-term health plans where you can pay premiums for multiple years at once.
Tip to RememberBefore buying a health insurance plan, you must compare various policies offered by different insurers to know their features and benefits. This will help you choose the best-suited plan for yourself. Also, you can attach riders such as critical illness cover, maternity cover etc. with your basic policy to enhance its coverage.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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