Do you think rich people likes of Elon Musk or Bill Gates need any health insurance? I think they don’t even care for it, as they are efficient enough to meet any kind of health emergency of their own.
Health insurance are meant for that section of the society who does not able to cope with the medical expenses. Insurance is a process where money is collected from different people and make them risk free during the case of any adversity. If the collection is made for any auto, then we call the auto insurance, if it is collected to cover the risks of any property then we call them property insurance. Similarly, if it is collected for the risk of health then it is termed as health insurance.
In many countries the responsibility for health care lies with the government. That they should provide free and quality healthcare. Post independence, India is also working in this direction. But they are yet to find a good solution. Though we have a number of private hospitals providing state of the art facility and services related to healthcare, but the cost of availing their services is too high to afford for many people. This is where the health insurance comes into play for the individuals. The rising inflation and increasing health care expenses makes it must to have a good insurance plan for an individual.
Let us understand, What all points to keep in mind when we are buying health insurance:
The first thing to take a note while buying a health insurance is if it is cashless or not. Because if it not cashless then you have to arrange money to pay the hospital expenses and later you will need to reimburse the amount from the insurance company. This is bit lengthy process and also requires a lot of paper work. The cashless option allow the individual to contact the network hospitals of that particular company. If there is any emergency then you go to that hospitals and get the treatment immediately.
The second thing we have to check is whether the policy, has pre and post hospitalization option or not. We have got the treatment done, and deposited the money from the insurance company, but there are lot of expenses before and after the treatment. There can be many tests or doctors’ consultation fees, there might be physiotherapy also recommended in some cases, Ambulances etc. We have to take a note if all these were covered or not.
*We also have to check whether our insurance has co-pay options or not. Suppose, we have incurred an expenditure of $1000 for the hospitals and there is a clause of ’5% co pay’ in the insurance. In that case we have to pay $50 from our pocket.
*We also have to check Cap on coverage before taking the insurance. Whether any limit has been set for any particular treatment or not. Suppose, we have to undergo, knee surgery and the insurance, we have taken has a cap of $10000 on knee surgery. In that case, we have to pay whatever the cost exceeds $10000. Cap means setting a limit against certain treatment. *
Whenever we compare policies, pay attention to the no claim bonus. If we do not use insurance in the particular year and have paid the premium, then some insurance companies give us a bonus, either in the form of increasing the coverage amount or by providing concession on the the premium or through some loyalty points or cash back option.
We also need to pay attention, is to whether there is any room rent capping in the insurance or not. And if yes then how much? Suppose, we have admitted to the hospitals, and hospitals have different kinds of rooms, such deluxe rooms or luxury rooms, etc. suppose we have taken a luxury room that cost $1000 a day, if our insurance is without any cap i.e there is no limit on room charges, then there is no problem, but if the insurance is with a cap means a limit is set in. then you will not get full money for room rent.
Taking the cheapest health insurance with low premium in the market won’t solve the problems. We have to check the settlement ratio of the insurance company, so that when we need insurance, we will get the claim, instead of getting a rejection on the application for any reason. Claim settlement ratio tell us how many insurance claims the company, has made and how many have rejected.
If we have any pre-existing disease, then we have to get the policy accordingly. Never hide the pre existing diseases, doing so may terminates the policy. Sooner or later the insurance company will find out about it. By hiding things, we may lose the premium, as well as our policy too get terminated. If we have any disease before 48 months of the date on which we are taking the insurance, then it will be considered as pre-existing disease.
One should take the health insurance as per their affordability and also as per the requirement. There are two kinds of health insurance available in market, firstly, Individual plan and second, family floater, which is meant to cover the entire family. The choice is entirely depends upon the person to choose either of them.
Health insurance is a boon in the rising inflation situation for meeting the unwanted medical expenditure. I must say every middle class must have their own specific health insurance.