Buying health insurance is as important as it is vital. This is an investment that should be a priority for every single person. But, the insurance market is flooded with several different types of insurance companies, each offering unique benefits, while charging a different insurance premium. As such, it can be rather confusing for one to select the best insurance policy and insurance provider. If you are in the market for a health insurance plan, you the below tips can help you find the ideal insurance provider.
Reputation of the insurance provider: The first thing you need to keep in mind while selecting an insurance provider is their reputation. You need to consider factors such as the medical insurance provider’s background, the number of years they have been in business, the premium and coverage, and the different types of products they offer. Other important points worth consideration are the health insurance provider’s claim settlement ratio and customer service offered. Check if they have a dedicated, 24×7 help-line and read up reviews about the quality of service offered.
Consider the premium amounts to coverage ratio: While the premium payable should not be the sole determining factor while purchasing insurance, it is not something that can be ignored. You need to check whether the amount you are paying in premiums matches up to the coverage offered. All investors prefer policies that charge lower premiums, but you should remember that lower premiums mean lower coverage. A high premium does not necessarily mean that you would get all-round coverage just as a low premium does not mean that the coverage is extremely limited. You should consider an insurer who offers a wide variety of health insurance policies where one can find the right cover for the right premium.
Consider the sum assured: These days, basic insurance policies with lower amounts of sums assured (₹100,000 or ₹200,000 for instance) are just not enough. You need to consider inflation and the escalating rates of medical care with every passing year, when you purchase a medical policy. You need to invest in a policy with a minimum sum assured of ₹500,000 to match up to ever-increasing prices of health care.
Consider the no-claims bonus: For every year in which you do not make a claim against your medical insurance policy, you become eligible for a reward. This reward is offered in the form of a no-claims bonus and you get a discount on the premium payable with every claim-free year. You should check the average percentage of the bonus offered by your insurance provider so that you can reap maximum benefit from the no-claims bonus.
Consider cashless payment facilities and network hospitals: It is natural for one to seek treatment at the best hospitals. This is why it is just as important to check the hospitals listed in the insurer’s network, where one can seek cashless treatment. If you prefer to be treated at a specific hospital, you may want to check if your insurance provider has it listed in its special network. Typically, you should check if the best hospitals in your vicinity are covered under the insurer’s network so that you can admitted there immediately while also benefiting from the cashless treatment facility. You can also seek treatment at any hospital you prefer, but you need to pay for the treatment up front and apply for reimbursement later.
Health insurance is not an investment you should take lightly. No matter what age you are, it is better to invest in a policy that comes to your rescue and insures your health when you need it urgently.
Keywords used: health insurance, health insurance plans, health insurance policy, medical insurance
Nitin Sachdev is a finance expert with over 10 years of experience in the insurance industry. His immense knowledge and love for writing is what drives him to educate other people. In this article, he has given information on health insurance. Here, he has shared some tips for finding the best health insurance provider.