Finance & Insurance

10 Things to Know If You are Buying a Health Insurance

Health insurance is an agreement signed between you and the insurance company. The awareness to buy health insurance is increasing day by day. It provides immediate financial help in case of medical emergencies. Insurance covers the whole or some part of your incurring medical expenses. Many factors need to be considered while purchasing health insurance.

Parameters to Consider If you are Purchasing a Health Insurance

You are advised to buy health insurance after learning all the important aspects. Here are the parameters to consider while purchasing Insurance for your health:

Know the Coverage

Policy inclusions are the set of prerequisites under the insurance that can be claimed. The coverage includes pre- and post-hospitalization charges, ambulance charges, laboratory tests, organ donor charges, medical tests, medications, medical fees, and many more. 

You should know the coverage you are getting if you intend to buy insurance. Many Health Insurance companies only cover the medical cost incurred while hospitalization. You are recommended to buy insurance that covers pre-hospital and post-hospital costs. Always make sure to read the policies thoroughly to learn about the exact coverage offered by them. 

Premiums

Premiums are described as the amount paid by you every month to the insurance companies. The premiums are paid to maintain the insurance policy and coverages. Insurance companies collectively use the premium amount at times of ensuring coverage linked to the policy. 

While choosing your insurance plans, the sum should be chosen carefully. You should keep a few factors in mind before opting for premium plans i.e. age, area of residence, income, medical history, lifestyle habits, dependency, nature of employment, and many more.  

Amongst all the mentioned factors, age is one of the major factors that need your attention because the older you are, the more inclined you are to diseases. Ultimately, the cost of premiums would be higher.

Waiting Period

If you are planning to buy health insurance, you must be aware of the waiting period clause. The waiting period refers to the time during which claims will not be accepted for any pre-existing and specific illness.

The waiting period usually varies from 24 months to 48 months. Waiting periods depend upon the insurer and the package. Different policies have variations in waiting periods.

However, the waiting period is applicable to many treatments and disorders. So, should choose your health insurance wisely. You must compare packages of different insurance providers and go with the package having a minimal waiting time. That is because you don’t need to wait for such long periods and start receiving benefits in case of medical emergencies. 

The reputation of the Insurance Company

The reputation of the Insurance company plays an important role when choosing health insurance for yourself.  Australian Unity private health insurance is a one-stop solution to fulfill all your needs.

Choosing a reputable company reduces the risk of getting scammed. One should know about the company before signing an agreement with them.   

Room Rent Limits

Room rent is also covered under your health insurance package. It depends upon the type of room and kind of hospital you are visiting.  But it is good to know the maximum amount of coverage allowed under your package. The reason for that is different companies have their own set of rules for room rent limits.

The room rent limits are mentioned in your policy documents. So you are suggested to go through the policy again and again and understand how room rent limits work. Then, only, choose the best-suited health insurance policy for yourself.   

No Claim Bonus

No Claim Bonus (NCB) is the reward provided by the insurance company to the insurer. The rewards are given only if the insurer does not make any claims during the policy year. 

The discount offered by the NCB ranges from 20% to 50%. The discount is applicable at times of renewal of a policy. 

No Claim Bonus is divided into two parts that are Cumulative bonus and Discount on premium. A cumulative bonus refers to the increase in the coverage amount, but the premium amount remains the same. On the other hand, a discount on a premium refers to the deduction in the number of premiums at a certain percentage. 

Pre-and Post- Hospitalization Coverage

Pre-and-post-hospitalization coverage includes any tests, treatments, doctor visits, etc., before and after the hospitalization. Many insurance companies only cover the medical costs occurring while hospitalization. 

Different insurance companies have varied sets of terms and conditions for pre- and post-hospitalization coverage. So you should keep these things in mind and choose the package that covers pre- and post-hospital charges, medications, medical fees, ambulance charges, medical tests, and many more. 

Hospital Networks

While purchasing health insurance, the insurer gets a list of hospitals mentioned in the agreement. Where they can avail their facilities like cashless treatments. 

You should choose the policy that provides a wide range of hospitals network. In addition, if you travel frequently, check for policies having global hospital networks.

Vising the hospitals under the network is beneficial as it lowers the paperwork, and provides a cashless claim facility. One of the major benefits of visiting the hospitals under the network is you don’t need to worry about financial burdens anymore. 

Day Care Procedures

Most of the medical procedures get completed within a day such as cataracts, nasal sinus aspiration, fractures and sutures on tendons, chemosurgery to the skin, chemotherapy, lobectomy, etc.

Standard health insurance policies usually cover expensive treatments only. Some may cover limited daycare procedures, but some may cover full daycare procedures under the policy. So, it is important to know whether your insurance is covering the daycare procedures or not.

Add-ons

Add-ons are another feature one can opt for while buying health insurance for oneself. This specifies that you can customize your health insurance policy as per your needs.

Critical illnesses like heart attacks, strokes, cancer, etc. are believed to be a major cause for selecting add-ons. Because the treatment associated with these life-threatening diseases is expensive. Some people can’t afford such expensive treatment costs.

You must purchase a health plan that is responsible to take care of critical illnesses if it occurs. Keep in mind that these add-ons come with additional costs, so evaluate your needs.

Final Words

In the end, life is unpredictable, so you should buy health insurance for yourself. Beyond healthy lifestyles or good habits, medical emergencies can take any time or at any moment. To reduce the risk of financial burdens, health insurance makes it easier. Conclusively, you can focus on your health rather than worrying about treatment costs. 




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