When it comes to health and money, the relationship between them may seem complicated, but it’s not; they are inherently interconnected. Because good health allows us to work, earn, and save, but what happens if illness or an accident strikes? In such situations, hard-earned savings often disappear quickly into hospital bills. That’s usually the moment when the thought arises: “If only there had been health insurance, this stress could have been avoided.”
For those who still haven’t purchased health insurance, it’s often because they’re unsure of what it really covers or how it works. This guide breaks it down clearly. It explains what a health insurance policy actually includes, how to compare different health insurance plans, and the key factors to consider before you buy health insurance. By the end, it becomes clear that choosing the right health insurance isn’t nearly as complicated as it first seems.
What is health insurance, and why does it matter today?
Medical expenses are rising every year. Imagine if a family member suddenly had to be hospitalised. Then, without health insurance, they would either have to spend their entire savings or take out a loan at high interest rates. Even a minor surgery could wipe out their whole savings.
However, if they have a health insurance plan for family, it acts as a safety net during such unexpected situations. It covers the costs of hospital or medical bills, protecting the policyholder’s financial resources. This allows the policyholder to focus on their health without worrying about the financial burden.
In such situations, a good health insurance policy acts as a safety net, covering hospital bills, room charges, ambulance fees, and in some cases, even pre- and post-hospitalisation expenses.
Types of Health Insurance Plans
It is essential to know about all the different types of health insurance policies before purchasing one. Because all plans are not the same. Therefore, when looking for the best health insurance plan, having a thorough understanding of the different types will help you make the right choice.
- Individual Health Insurance
If you want to buy a health policy for yourself or for one person, then this individual health insurance plan will be best for you. In some policy coverages, you can get benefits like cashless hospitalisation, daycare procedures, road ambulance services, pre- and post-hospitalisation expenses, alternative treatments, no-claim benefits, and much more.
- Family Floater Plans
This plan mainly stands for your family and loved ones. The health insurance plans for families cover hospitalisation, medical emergencies, diagnostic costs and preventive care for all family members under a single plan.
- Health Insurance Plans For Parents
Do your parents often have poor health and have to be hospitalised frequently? In such a situation, you will need a good health insurance policy that can cover medical expenses, hospitalisation costs, daycare treatment, diagnostic tests, etc.
- Senior Citizen Health Insurance
The best senior citizen health insurance policy is essential to them. At this stage of life, it provides crucial financial protection. Since any illness can strike at any time, leading to hospitalisation, and medical expenses can quickly drain a lifetime’s savings. However, with health insurance, the financial burden is significantly reduced.
- Top-up Health Insurance Plans
Suppose you already have basic coverage and are using it in case of emergency, but the coverage of that policy has been exhausted. In that case, these top-up plans work like a booster and help enhance your existing health insurance coverage.
Key Features to Look For
Now, before buying health insurance, what things should everyone compare:
- Sum Insured: Choose a cover amount that can realistically handle your health problem and your hospital costs in your city.
- Cashless Network Hospitals: While taking out a health insurance policy, keep in mind which and how many hospitals this scheme provides the facility of cashless treatment.
- Pre- and Post-Hospitalisation Cover: Always keep this in mind and ensure that policies cover expenses even before you’re admitted and after discharge.
- Claim Settlement Ratio: The Claim Settlement Ratio indicates an insurance provider’s transparency. It means how many claims the provider has successfully settled so far.
- Tax Benefits: While buying any health insurance plan, keep in mind that the premium offers a tax deduction under section 80D of the Income Tax Act, and claim payouts are also tax-exempt.
How to Choose the Right Plan
Selecting the right health insurance policy isn’t just about picking the cheapest premium; it’s about finding a plan that will actually support you in times of need. Before finalising, take a closer look at these key factors:
- Estimate Future and Present Needs: Are you insuring yourself, your family, or your elderly parents? The answer will decide whether you need an individual plan, family floater, or senior citizen cover.
- Compare Health Plans: It is very important to do research about the top insurance companies and compare the plans offered by them before making any decision.
- Look for Flexibility: Check if the insurer offers lifelong renewability and allows you to add family members later.
- Evaluate Policy Benefits: Before buying, read the policy terms, limits, usage conditions, etc., in detail.
Final Thoughts
Now, everyone might have understood why it is essential to buy health insurance and how to choose the correct and accurate health insurance plan. But getting the best health insurance does not mean selecting the cheapest premium. It is about how it will help you when you are facing a health problem and need it the most. The HDFC ERGO Plan can be one such companion in times of need.
Always remember that buying a health insurance plan is not an extra expense but a financial investment for health emergencies. So take time, compare carefully and then go ahead before buying any medical insurance policy.
**’The opinions expressed in the article are solely the author’s and don’t reflect the opinions or beliefs of the portal’**
