In India, a health insurance policy is one of the most misunderstood financial products. A lot of people refrain from purchasing a policy mainly because they don’t understand its importance. This article covers everything about what is health insurance and its important facts.
Research suggests that hardly 20% of India’s 1.3 billion population have a health insurance policy. This figure indicates the lack of understanding about the significance of a health cover among Indians. What is worse that, in India, unlike the countries in the west, there is no government-sponsored social security system, and the cost of medical treatment is rising at a rapid face. In such a situation, it can be challenging for a middle-class family to afford proper medical care.
No matter, if you are covered under the group health insurance policy provided by your organisation, it is crucial that you buy a health cover individually for you and your family. Today, the insurance companies in India offer a variety of health insurance plans to suit the varying needs of the people. If you are putting off buying a policy, because you don’t know much about the product, know the below-mentioned facts may help you make the right choice.
What is Health Insurance?
Health insurance is financial protection offered by the insurance company against medical emergencies. To avail the health insurance benefits, you must pay a fixed premium (determined at the time of buying the policy) for a fixed period and based on the terms and conditions of the plan, the insurer will pay for the medical expenses.
Fact 1
Today, with most insurance companies in India offering online service, you can purchase, and renew your policy online. One of the most significant benefits of buying a health policy online is that you can easily compare the different plans and choose the policy to suit your specific needs. Also, when you buy online, there is no brokerage involved so you can buy a policy for a much lower price than buying offline through an agent.
Fact 2
It is a general notion among people that the claim settlement process for policies purchased online is stringent. But, the truth is, the process is simple, provided you follow the rules correctly and provide the necessary documents. To file a claim, you must submit an online form from the insurer’s website and submit the relevant documents to support your application (bills, receipts, etc.) Once you submit the claim form, the insurer will verify the details, and if everything is fine, the insurer will settle the claim.
Fact 3
Today, most insurance companies offer portability facility. If you are not satisfied with the services provided by the current insurer, or if you think you can get better coverage at a lesser premium, you can port to a different insurer at the time of renewing your policy. But, make sure that you read the policy terms and conditions carefully, before initiating the portability process.
Fact 4
All retail health insurance policies sold in India come with a lifelong renewability benefit. This is an important clause as it allows you to get coverage even in your old age.
Fact 5
Health insurance does not cover only hospital charges. Depending on the type of plan you have purchased, a health insurance policy also compensates for daycare treatment expenses, ambulance charges, bed charges, clinical tests, and pre and post-hospitalisation charges.
So, now that you are aware of the critical facts about a health insurance policy make sure that you buy a robust policy with sufficient sum assured to protect your family from medical emergencies.