Guide to buying the best health insurance

BySunil

So, you are looking to purchase a health insurance policy? That is a very wise and prudent choice. This article will elucidate the top things you should keep an eye on before purchasing a health insurance policy.

Let us look at the top 5 things to consider before buying a health insurance policy.

  • Claim settlement ratio

  • Cashless treatment

  • Waiting period

  • Pre and post hospitalization treatment

  • Accidental coverage 

Claim settlement ratio

A claim settlement ratio is the ratio of settled claims compared to total claims made. It basically highlights the total claims settled by the insurance company. 

For instance, if a company has a claim settlement ratio of 95%, that means that the company settled 95/100 health insurance claims made by their policyholders. The higher the claim settlement ratio the better it is. 

Legitimate health insurance companies like Star Health Insurance, HDFC ERGO, Manipal Cigna, Aditya Birla Health Insurance, etc will generally have a very healthy claim settlement ratio.

Ensure you ask the insurance company or your agent about their claim settlement ratio.

Cashless treatment

Cashless treatment is when the policyholder does not need to pay out of his pocket initially. The policyholder will simply need to submit his policy bond, ID and cashless card to the hospital billing/admission department, and the insurance company will directly handle the hospitalization expenses. 

This is a very convenient way of handling hospitalization billing for the policyholder. However, it is very important to remember that cashless treatment can only be availed at insurance company affiliated hospitals. So, ensure that you ask your agent about the nearest cashless hospitals to your residence.

Waiting period

Just buying a policy is not enough. You also need to ask your agent about the waiting period for any potential illnesses. The policy will provide coverage to disorders after a specific predefined waiting period. 

For instance, a company will mention a waiting period of 2 years for any pre-existing illness. That would basically mean that the policyholder will have to wait for 2 years before making a claim towards a pre-existing illness. 

Accidental hospitalizations are generally covered after 24 hours of policy issuance; other illnesses generally have a waiting period. Ask your agent about the waiting period extensively.

Pre and post hospitalization treatment

Just hospitalization coverage may not be enough. Many insurance companies provide pre hospitalization coverage before the actual hospitalization occurs. Similarly, insurance companies also provide post hospitalization coverage after the policyholder gets discharged from the hospital. Ask about this benefit to your agent.

Accidental coverage

As previously mentioned, most comprehensive health insurance plans provide accidental coverage. However, it would be wise to confirm about this with your agent. You should also renew your policy bond extensively before purchasing any policy. It is always better to read the fine print.

If you follow this general guide and ask the above questions, you should end up with a good insurance policy for yourself and your family.