The strenuous lifestyle we are leading presently can raise medical issues at any time. This makes health insurance a crucial tool in today’s era, especially after the COVID-19 pandemic. It can help you in case of all-time high emergencies like disease, sickness, and accidents with prolonged hospitalization. With the right health insurance for you or your family member, you can save thousands even tens of thousands. But before you dive into it, here are 10-point checklists for picking a term insurance policy.
Things to Consider Before Picking a Health Insurance Plan
1. Sum Insured Limits
Sum insured is the main limit in an insurance plan. The medical expense incurred under or above the sum insured isn’t payable. Hence, it is recommended to take adequate cover early. In addition, it won’t increase the sum insured once you made a claim or when your age increases.
2. Floater/Individual Policies
Most people struggle to decide whether they should go with the ‘individual’ policy or a ‘family floater policy'. The individual policy works in all situations however it can be expensive. On the other hand, a family floater plan offers much flexibility when comes to utilizing the overall health insurance coverage. If you choose a family floater plan, then the sum insured must be sufficiently higher enough to consider more than one person in your family.
3. Extent of Coverage
Always ensure the risk covered must be comprehensive. You should avoid buying a cheaper plan. Instead, measure the coverage based on the benefits offered. Benefits like pre & post-hospitalization, ambulance service, maternity extensions, OPD cover, and Daycare procedures must be considered.
4. Waiting Period for Disease Exclusions
Most people might deal with health-related problems before applying for an insurance policy. The pre-existing condition inflicts a waiting period known as the ‘cooling period’. Hence, a comparison of waiting periods is essential for covering pre-existing ailments.
The waiting periods are also available for conditions like Kidney stones, cataracts, hysterectomies, and Knee replacement surgery.
Co-payments include sub-limits and the insurer is asked to pay a pre-determined percentage of the deductibles or the claim amount. It is advised to buy plans that offer devoid of restrictive options like limits on room rents, treatment-specific limits, and co-payments.
6. List of Exclusions
In case you are not familiar with the ailments, your health insurance policy might cause a lit bit of trouble. It is crucial to consider the list of exclusions to avoid instances. This way you don’t end up paying extras.
7. Reputation of the Company
Traditionally, the majority of people go with the insurance plan that is recommended by a family member or friend because they trust their judgments and experiences. However, it’s not the right way. When you are planning to buy an insurance plan, it becomes important to consider the reputation of the company. Also, you need to keep track of how smoothly the company makes the settlement.
8. Know Your Budget Limit
Before you invest, it is crucial to estimate your cover limit appetite. If you have a steady flow of income, it’s better to invest early as the future cost might peak.
9. Don’t Take More Than 2 Policies
Ideally, you should have one term plan policy. But depending on the situation, you can take 2 policies at max. Don’t go beyond it.
10. Check Policy Paper Carefully
One of the most important things you need to keep in mind is to check policy papers carefully. Check all the fine points, along with the copy of the medical examination. If you find anything wrong, you need to reach the belonging company and get it corrected as soon as possible.
These are 10-points checklists for picking a term insurance policy.