Human life holds immeasurable value. Around this simple human life, there are perils that can cause harm to a great extent. If the harm is caused to the earning member of the family, a serious financial crisis can burden the family. Insurance is one such tool to transfer those risks and live a stress-free life. Health insurance plans can be reviewed and compared to understand the degree of coverage it provides.
There are three broad categories of health insurance plans:
Term Insurance Plans: These plans provide coverage for a specific time period. A claim can be made only at the occurrence of the accident or illness mentioned in the policy. The policy gets void and the buyer gets nothing in return at the end of the period if no claim is made during the policy period.
Endowment Insurance Plans: Endowment Plans work similarly to term insurance plans but have a Sum Assured (SA) at the end of the policy period. Even if no claim has been made in the entire period, a buyer of the policy would get a Sum Assured. In case of a claim, the insurer will evaluate the situation and make payments accordingly. This is a good option to get a risk cover and make savings.
Unit Linked Insurance Plans (ULIP): ULIPS are complex insurance plans that provide risk cover and an investment option, wherein the buyer is responsible for making investment decisions.For people who are considering investments as well, ULIPs offer a range of plans that use a certain percentage of the premium amount for investment portion and other for insurance.
After gaining the understanding of the types of health insurance plans, a conscientious buyer should examine the following features of the policy while evaluating and comparing policies online:
Find a Policy for Your Need
Employers generally provide health insurance policies, but such policies might not offer a comprehensive cover. Therefore, one must consider the option of buying an insurance policy that provides additional covers. One ought to look for a plan that provides a cover that estimates inflation-adjusted costs of the future. Also, while considering insurers, go for one which has a good claim settlement ratio and an efficient claim settlement process.
Be Wary of Co-payment Clause
One should be aware of the additional charges that a buyer has to bear. Some health insurance plans have a clause that requires the policyholder to bear a prefixed percentage of expenses incurred for the claim made. A cheap insurance policy may entail high co-payment, thus providing less comprehensive coverage.
Understand the Covers for Hospitalization and Other Expenses
For expenses pertaining to room allocation during hospitalization, day-care and pre/post-hospitalization expenditure one should be aware of ceiling on coverage for day-care expenditure, the maximum number of days for which insurance policy can provide cover; and pre and post-hospitalization expenditures, the maximum cover on expenses like follow-up visits, medicines, et al.
No-Claim Bonus (NCB) clause in the insurance policy is an added benefit if no claim is made during the policy period. This added benefit can be used up as a discount on the next premium payment or as a bonus on the sum assured.
Other benefits like maternity benefits, free medical check-ups andlifetime renewal options also need to be considered while evaluating health insurance plans.
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to get better insurance claim in future.