What is Mediclaim Policy?
Mediclaim policy is a hospitalization benefit policy
offered by both Public & Private sector insurance companies. Mediclaim
policy provides financial cover to individuals for any unforeseen medical
emergencies, be it an illness or an accident that has led
to hospitalization.
Health insurance policy with cashless hospitalization, do not let medical expenses become a burden on your pocket. This policy is taken to defray the hospitalization expenses. The health insurance policy is an annual contract and one needs to pay the premium before the due date so as to continue enjoying its benefits. The premiums rise as you grow older as you are more likely to fall sick.
Why should you buy a Health Insurance Policy?
With ever increasing health care costs have made it
necessary for everyone to buy a health insurance policy. When it comes to
healthcare, everyone wants the best in class healthcare services.
However, considering the high going health care expenses, many of us are forced to go for a relatively lower quality of healthcare. But with a mediclaim policy, an individual is able to go for the best available medical healthcare, without having to worry about arranging large sums of money to pay medical bills.
However, considering the high going health care expenses, many of us are forced to go for a relatively lower quality of healthcare. But with a mediclaim policy, an individual is able to go for the best available medical healthcare, without having to worry about arranging large sums of money to pay medical bills.
Benefits of Health Insurance Policy
1. Health insurance policy reduces your financial burden. The
most crucial feature of a mediclaim policy is that it offers
financial coverage against sudden medical expenses.
2. Cashless access to network hospitals. Most of the medical
insurance policies
provide cashless hospitalization facility
wherein no money has to be
paid by you.
3. Some medical insurance policies offer coverage
beyond hospitalization expenses to cover OPD expenses.
4. The amount paid towards medical insurance premium for
self/spouse/children provides tax exemption under Section 80D for a maximum of
Rs 25,000. There is an additional benefit of Rs 25,000 on medical
insurance premium
for parents (Rs 30,000 if parents are senior citizens).
5. Health insurance policy gives peace of mind and
sense of security as at the cost of reasonable premium, it gives you an escape
from high going medical cost.
Types of Mediclaim Policies
1. Individual Mediclaim Policy
The most basic form of medical insurance is the individual mediclaim policy. It covers the
hospitalization expenses for an individual up to the sum assured limit. The
insurance premium is dependent on the sum assured value.
2. Family Floater Mediclaim Policy
In Family Floater Mediclaim Policy, the sum assured
value floats amongst the family members. The family generally includes self,
spouse and two dependent children and in some policies even dependent
parents.
In this policy, the sum assured is not fixed for each family member, but there is an upper limit for the total family cover. It gives the entire family a total cover, which could be utilized by both, the entire family jointly or by one single member alone.
The premium for this type of policy is based upon the family member who has the highest age. The premium (per person) for family floater policies is less than that for separate insurance cover for each family member.
In this policy, the sum assured is not fixed for each family member, but there is an upper limit for the total family cover. It gives the entire family a total cover, which could be utilized by both, the entire family jointly or by one single member alone.
The premium for this type of policy is based upon the family member who has the highest age. The premium (per person) for family floater policies is less than that for separate insurance cover for each family member.
3. Unit Linked Health Plan
Health insurance companies also introduced Unit Linked
Health Plans. These plans combine medical insurance with an
investment plan and pay back an amount at the end of the insurance policy term.
The returns are dependent on the performance of the share market. This type of policies is recommended for the people who have the risk-profile to invest in market-linked products.
The returns are dependent on the performance of the share market. This type of policies is recommended for the people who have the risk-profile to invest in market-linked products.
Points to consider while buying a Health
Insurance Policy
1. Individual Policy or Family Floater - There are two popular
policies of health insurance. The first one is basic individual mediclaim that
covers a single individual, and the second one is a family floater policy that
covers the entire family under one policy. You have to be clear if you
want to buy individual policy for each person or a family floater policy.
Family floater policies are the preferred option because they provide higher
cover at a lower cost.
2. Decide the Sum Insured - It is very important to
take adequate cover for your family. The coverage amount of your health
insurance policy
needs to be decided in accordance with the family health history, age of the
members and the class of the hospital you wish to choose. Make sure you opt for
sufficient sum insured keeping in mind the cost of healthcare in future.
3. Look for diseases covered under Mediclaim policy - Before buying a mediclaim
policy, it is extremely important to see the diseases and sickness it
covers. Generally the health insurance companies levy limits on certain
specific treatments like cataract, cardiac treatments, dental treatment,
plastic surgery, obesity-related treatment etc. It is also important to check
the list of permanent exclusions in the health insurance policy.
4. Pre-existing disease - Pre-existing diseases
are those which policyholder is suffering from before buying a mediclaim
policy. Most health insurance companies in India provide coverage for pre-existing diseases only
after a waiting period. A best health insurance policy covers a
pre-existing disease as soon as possible.
5. Co-payment/Sub-limit - While buying a medical insurance, it is
important to see the clauses like co-pay and sub-limits in the policy.
Co-pay is the percentage sharing of the claim amount divided among you and your
insurance company while sub-limit refers to the maximum cap that the insurance
company reimburses such as the case in room rent cap.
6. Waiting Period - There are instances, where
an insured person failed to get the benefit of the mediclaim policy due to the
waiting period. Most of the mediclaim policies have a waiting period. Only
after completion of this period, the policy becomes fully active and insured
person becomes eligible to get the benefit as per the policy terms and
conditions.
7. Hospital Network - At the time of emergency
one need to reach hospital fast. Therefore, it is also important to check if
the mediclaim policy you are buying is compatible with the hospital near you
which is also in your budget. Doing so makes it easier for you to avail
cashless hospitalization as and when the need arises in future.
8. No-Claim Bonus/Discount - It refers to a feature
where insurance companies give a no claim bonus to policyholders if insured
have not made any claim in the preceding year. You should look for a mediclaim
policy that offers highest no claim bonus/discount.
9. Claim Settlement - Before opting for a
mediclaim policy, make sure the claim settlement procedure is quick and easy.
The health insurance company has got a high claim settlement ratio.
10. Policy Terms and Conditions - It is very necessary that
you read all the terms and conditions of the health insurance policy. This will
definitely help in getting in-depth knowledge about the entire policy.
Always treat your health insurance policy purely as an
expense. So if you are single, buy an Individual Mediclaim policy and if you
have a
family, buy a Family
Floater policy.
Also read: What is Atal Pension Yojana?
Also read: LIC Cancer Cover Policy
Also read: Why do you need life insurance?
If you liked this article, share it with your friends
and colleagues through Twitter or Facebook. Your opinion matters, please share
your comments.
Thats a good comprehensive guide to Medical Insurance in India. Thanks.
ReplyDeleteNot sure if I missed it or it is not there: Is the cover available till death or there is a Age limit for cover.