What is Health Insurance?
It is a well-known fact today that medical spending is rising at an unprecedented rate - inflation in medical spending has risen from 7% to 15% in the last one year. A health insurance report published in 2011 by the Insurance Regulatory and Development Board or IRDA of India suggests that medical expenses for major diseases reflect a combined annual growth of 17%. Thus, a competent health insurance policy has become an indispensable investment in today's day and age. Should we invest in this too?
This has led to a growing awareness in the last few years that people are looking beyond the tax benefits of a health insurance policy. Although tax benefits are certainly encouraging to invest in a health insurance policy, this approach often makes people invest in a policy that offers maximum tax benefits, but misses out on real medi-claim benefits. Therefore, tax profit are one of the many factors that influence your finance decision. This is also a long-term benefit-factor.
one more issue regarding the health insurance market in India is that most people working in large companies believe that the insurance benefits offered by the employer are adequate. This leads to a lack of personal interest and investment in the policy itself. However, you need to keep in mind that corporate analysis only lasts until your employment contract. This understanding is always lost behind the smokescreen of all the profit you can enjoy without paying anything in the case of a corporate health insurance plan.
The smart way to go about this is to evaluate your personal needs and invest in a separate health insurance policy instead of depending on the office group plan.
The market is flooded with companies offering you different policies, each one sounding more attractive than the previous one. However, all that glitters might not be gold and thus, making a well-informed choice becomes extremely important. We hope the following pointers help you take that first step in the right direction.
- WHY invest in a Health Insurance Plan?
Why does one got to spend your hard-earned money on an policy which hopefully, you won’t got to take advantage for the whole duration of the term?
The answer is as simple because the age-old proverb - prevention is best than cure. Although, in hindsight, it probably isn’t the simplest thanks to promote a insurance policy. the purpose we try to urge across is that being prepared for any medical emergency is best than lamenting afterward . Today’s fast-paced world, filled with with pollution and therefore the innumerable health problems affect many people on a day to day - especially in metro cities. You never know once you might got to pay hefty medical and hospital bills.
And, given the drastically high prices of medical aid in recent times, judging by the statistics given within the beginning of this text , one trip to the hospital could rather be enough to wipe out your entire life savings. The pre and post hospitalization requirements also can cost you thousands of rupees in medicines and other seemingly insignificant expenses. There are a few of other compelling factors that ought to push you within the direction of shopping for insurance , just like the following:
1. A good health insurance plan prepares you for any unplanned medical emergency
2. It covers the high-end cost of medical care on your behalf
3. The premium of health insurance policies is usually cheaper than the actual cost of treatment
4. The claim process is usually simple and hassle-free
5. Your claims stand a better chance with a trusted insurer
- How to choose a coverage amount
It is obviously advisable to travel for an idea that gives maximum health coverage and maximum amount for the treatment to offset sky-high medical costs.
- Family Floater Plan?
As wonderful as a private health plan is, everyone wants to make sure that even their relations enjoy the advantages of a insurance policy. But buying a separate plan for every member are often financially exhausting. Thus, investing during a family floater plan is taken into account advisable to save lots of valuable money. The interesting thing a few family floater plan is that not only are the premiums lower but usually, the sum offered is additionally higher as compared to individual insurance policies.
- Be precise with your calculations
Always consider your age while choosing a health plan. For younger people, risk is a smaller amount , then is premium. Once you hit 40, though, your needs will evolve, and your health plan must reflect that. This also means you would like to specialise in buying an idea that gives maximum age renewal - or just put, one that you simply can renew in your time of life .
Also, once you're married, your health plan should take into consideration both you and your spouse’s age and health conditions.
- Choose the minimum waiting period for any existing illness
Every insurance policy comes with its own set of terms and conditions regarding pre-existing illness. Usually, there’s a waiting period for you to become eligible for medical benefits and coverage for any illness that existed before the plan started. The period of time can range anywhere from 2-4 years. It is, of course, advisable to settle on an idea that gives a minimum waiting period.
- Consider the sub-limits offered
Most health plans accompany predetermined sub-limits on daily medical expenses, like room rent just in case of hospitalization, or ambulance charges. Choose an idea that gives you the very best slab on an equivalent .
It is advisable to match the various premiums and offers online before making any decision.
- Compare before investing
The premium amount should be compared with insurance policies offering an identical set of advantages . this may make sure that you get the utmost benefits out of your insurance policy.
- Network hospitals
Before investing in any health plan, confirm you think about the network hospitals covered under the plan terms. Network hospitals ask a gaggle of hospitals that allow you to cash your current health plan. Always choose an idea that gives the utmost number of network hospitals in your area. Otherwise, your investment would avail to zilch in times of emergencies.
- Mind the exclusions!
Just as a health plan covers a group of diseases, they are also entitled to exclude some others. Thus, before making any purchase, you ought to consider carefully all the medical ailments and conditions not included within the plan. this may help prevent an unnecessary headache within the future.
- Reviews matter
Online purchasing should be done after browsing the reviews. This rule applies to everything from groceries to even health plans. While researching your required health plan online, confirm you undergo the reviews given by previous and existing users. this may offer you a transparent picture of the truth behind the claims offered by your insurer and assist you make a sensible investment.
Thus, a insurance plan is simply like all other investment and will tend the due time, consideration and research. Keep these basic pointers in mind before choosing your next health plan in order that when you’re browsing tough health issues, the way to buy your treatment isn't a further worry you would like to affect.
Top 10 Best Health Insurance Companies in India
1. Apollo Munich Health Insurance Company Limited
HDFC ERGO insurance Company was previously referred to as Apollo Munich insurance . it's a venture of HDFC Limited and ERGO International AG. the corporate has an exceptional record of incurred claim ratio of 62% and it's brought additional benefits like lifelong renewability options and portability within the insurance plans.
2. Star Health & Allied Insurance Company Limited
Started in 2006, Star Health is that the India’s first standalone insurance provider. the corporate has a superb service with innovative products, which caters individual, families and corporates. Star Health company provides sterling services within the personal accident and overseas Travel Insurance. it's predominantly into Bancassurance, and features a well-established relationship with various banks. The insurer has an incurred claim ratio of 63%. Currently, the corporate has 11000+ employees and 550+ branches across the country.
3. Max Bupa Health Insurance Company Limited
Max Bupa insurance Company may be a venture between Max India Limited and Bupa Group. the corporate has smart top-up options to spice up your coverage. With 4000 Max Bupa network hospitals, you'll avail the offer of cashless treatment. Max Bupa has an incurred claim ratio of 54%.
4. ICICI Lombard General Insurance Company Limited
The company came into the limelight after the collaboration with ICICI Bank Limited and Fairfax Financial Holdings Limited. The insurance firm offers a strong product portfolio that has health, motor, car, travel and residential insurance. ICICI general insurance secures against unexpected events in life. Therefore, you'll avail protection solutions for business, personal and project liabilities in rural also as urban areas across the country.
5. Religare Health Insurance Company Limited
Religare may be a venture between Religare Enterprise Limited, Union Bank of India and Corporation Bank. it's a specialised health insurer offering insurance services to employees of corporate and individual customers. the corporate offers products like insurance , critical illness, personal accident, International Travel Insurance along side group insurance and group personal accident insurance for corporate. the corporate has tremendous growth and has an incurred claim ratio of 55%.
6. Cigna TTK Health Insurance Company Limited
The company focuses to enhance health, well-being and peace of mind. It makes health cheaper by partnering with providers that provide quality and cost-effective care. the most motto of Cigna TTK is to supply comprehensive health care coverage and serve customer, client, patient and therefore the community.
7. Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General insurance firm may be a venture of Bajaj Finserv Limited and Allianz SE. With Health-Guard, Silver Health and Star Package, the corporate was the primary to supply TPA services with additional benefits. the corporate makes a cashless claim settlement Facility in additional than 6500 hospitals. it's an incurred claim ratio of 85% and it settles cashless claims within 1 hour.
8. New India Assurance Company Limited
New India Assurance Company Limited may be a multinational general insurance firm owned by the govt of India. It offers a singular feature for the insurance policy and is legendary for its mediclaim policy. The insurance firm is working in 28 countries and deals with non-life businesses. it's 1200+ cashless hospitals with an incurred claim ratio of 95.39%.
9. Oriental Insurance Company Limited
It is a government-owned general insurance firm offering insurance products in India. Anyone above the age of 60 years doesn’t need to provide a medical test. Oriental insurance firm has tie-ups with quite 4300 network hospitals which provides cashless treatment. the corporate has an incurred claim ratio of 108.80%.
10. National Insurance Company Limited
National Insurance Company may be a government entity serving for quite 100 years. It offers free health check-up benefit up to a quarter of the sum insured after the completion of 4 claim years. With 1730+ offices and quite 13000+ skilled employees, the corporate features a strong presence in India and Nepal. social insurance has an incurred claim ratio of 109.94% and it covers up the losses with other insurance products.