The insurance market is flooded with several policies, and all of them claim to the best at what they do. However, it is crucial for you to pick a plan that will best suit your requirements. While picking up the right policy, you must keep in mind your family’s future, more than the present. Here are some tips to consider when you zero down on the policies.
Deciding the kind:There are two kinds of medical insurances available in the market- indemnity plans and defined-benefit plans. An indemnity plan will reimburse the entire hospital expense, whereas, the defined-benefit plan will pay a lump-sum amount of the total expenditure made.
To understand this better, insurances for individuals or families are examples of indemnity plans. In most cases, indemnity plans are the preferred choice of individuals. On the other hand, insurances for critical illnesses are defined-benefit plans.
If you plan on taking indemnity plan for your family, and someone in the family suffers from a critical illness or is above 50 years of age, an individual plan or defined-benefit plan for that individual should be beneficial.
Check the sub-limitSome policies come with a sub-limit in the plan. This refers to limiting the pay out of the claim. For instance, if the room-rent is capped at 1% of the policy amount, if you do not stay in the limit and spend more than the decided amount, you may have to shell extra money out of pocket. Look for a policy that doesn't include sub-limits, or even if it does, they should be higher/doable.
Other points to check:
- Co-pay: If a policy has a co-pay clause, you will have to pay a certain percentage of the total expenditure from your pocket. Look for a policy with no co-pay clause.
- Exclusions: Most policies have standard exclusions. Even then, it is essential to discuss this with the insurance provider, so you maintain transparency.
- Terms and conditions: Before you buy health insurance, make sure to read everything mentioned in the terms and conditions. It is a time taking time, but you will be thankful later.
Learn more about different Health Insurance Plans here.
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.
How to save on gift tax in India?
You need to pay taxes on gifts which exceed the limits set by the Government. However, gifts of any amount received or given from relatives including parents and spouse are tax-free.
6 Factors for Rising Health Insurance Premiums
While the demand for health insurance policies has certainly increased, there has also been a rise in the premium costs. Read this post to know the top factors that lead to an increase in the premiums of health insurance.
What Is FTSE And Why Does It Matter?
Informally referred to as the ‘footsie’, FTSE is a joint venture between the London Stock Exchange and the Financial Times of London. The acronym stands for Financial Times and Stock Exchange, and the indices of this joint venture comprise UK’s most highly-capitalized companies that are listed on the London Stock Exchange.
5 Types of Business Loan For Woman Entrepreneurs
There are now many different types of loans options in India for women wanting to explore their entrepreneurial dreams. Read this post to know 5 of the most popular options.