Please disable Ad Blocker before you can visit the website !!!

Top 5 things to consider before signing up for a health cover

by Money Puzzle   ·  April 9, 2019   ·  

Why bother with a health coverage when you are young and healthy? Well one clear reason is because if you leave it till you are sick and needy you probably won’t qualify or may have to pay a large sum as premium. Health coverage is not a maybe it’s a must have.

Watch my interaction with Vivek Rege, CEO and founder VR Wealth Advisors to know why.

Whether you opt for a Mediclaim policy or a health insurance, be mindful to check on these top 5 in the fine print.

Five things to evaluate a health cover

1. Cost
2. Sub-limits and waiting period
3. Exclusions
4. Pre and post hospitalisation expense cover
5. No claim bonus

1. Cost

The premium you pay versus the coverage you are getting is the first check you must do. Many of us like to go for the product that has the lowest cost, however, in this case – cheaper may not equal better. The idea of taking on a health cover is to pass on the financial risk that comes with a medical emergency to the insurance company. Which means the company will also have its conditions before giving you the option to pass on that risk.

As a first step you have to check the coverage you are getting for the premium you are paying and whether it is appropriate for you and your family.

2. Sub limits and waiting period

If you have some pre existing medical conditions, the policy will define a waiting period before which you can claim any expenses incurred on treatment. This waiting period varies for each insurance policy. You also have to check which other procedures are included under a waiting period. In some policies hospitalisation costs have a 30-60 day waiting period. Sub-limits apply to specific expenses that the policy covers. Any health policy will specify what all it covers like hospital room rent, doctor’s fee, OT charges and so on.

Each of these is likely to have a sublimit. As Rege points out in the video, if your room sublimit is too low you may not be able to access that private air-conditioned room you were hoping for.

3. Exclusions

All health cover policies will have some in built exclusions. These may include certain types of treatments or even certain types medical conditions and costs. For example, you should check whether treatments related to congenital or birth related illnesses are covered. Also, usually treatment outside India will not be covered. For better understanding of what you can or can’t claim always look up the exclusions.

4. Pre and post hospitalisation expenses

These expenses are important to the overall spend on a medical emergency. Usually the pre hospitalisation expenses on tests can be comparatively higher than what you would pay for post hospitalisation expenses. You must check how many days of pre and post hospitalisation expenses the policy covers, it could be 30 or 60 days and so on. As a thumb rule, a longer coverage for pre hospitalisation expenses may be more suitable.

5. No Claim bonus

As explained by Rege in the video, there are two categories for no claim bonus. One type is where a percentage of the sum assured gets added back to the total coverage – thereby, increasing the coverage by that amount. The second type is where you get a discount on the premium. If you think about medical expenses, it may be more advantageous to have a policy where the no claim bonus comes in the form of increased sum assured as medical expenses are only likely to go not come down.

Leave a Reply

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from MoneyPuzzle.

You have Successfully Subscribed!