In India, health insurance is considered as an unnecessary investment. Most people buy health policy mainly to reduce their tax liability. But, it’s benefits in terms of protecting against medical emergencies should not be underestimated. Read on to more about a health insurance policy.
Health insurance plays a vital role in providing financial stability to the policyholder in the event of any medical issues in the family. This is because, when you purchase a health policy, the insurance company provides you with financial help to cover the treatment cost. To avail the benefits of a health insurance policy, it is paramount that you understand your health cover. Here are a few critical things you must know about a health insurance policy:
Health insurance terms
Often health insurance buyers, especially first-time buyers, have no clue about the various health insurance terms mentioned in the policy documents. It is vital that you understand every single word and what the term means to avoid any dispute later. Some of the critical health insurance-related terms you must be aware of are:
- Pre-existing illness
This refers to the disease or medical condition that you may be suffering from before purchasing the policy. Most insurance companies do not cover pre-existing illness, or it is covered only after the waiting period is over.
- Waiting period
Every general health insurance policy comes with a certain waiting period. It is the time during which the insurer is not liable to pay any compensation for specific medical conditions, as mentioned in the policy documents.
- Network hospitals
All insurance companies have collaboration with hospitals, which are known as network hospitals.
Features and Benefits of Health Insurance Policy
- Cashless Treatment
One of the significant features of a health insurance policy is that if you seek treatment from any of the insurer’s network hospitals, you need not pay for the medical expenses. The insurer will directly settle the bills with the hospital after you get discharged. But, to avail of this facility, you must show the cashless card provided by the insurer at the hospital. However, if you get admitted to a non-network hospital due to an emergency, you must settle the bill first and then obtain reimbursement from the insurer.
- Coverage for daycare treatment
Most insurance companies in India provide compensation for the daycare treatment expenses that do not require you to get admitted to the hospital.
- Pre and post hospitalisation charges
This is another significant benefit of a health insurance policy. Most insurance policies provide pre and post hospitalisation expenses. The duration of the coverage may vary from insurer to insurer, but it generally ranges from 30 to 60 days.
- Online renewal
All health insurance policies have a maturity date post which you must renew the same to continue receiving the benefits. Today, with most insurance companies offering online services, you can renew your policy online just by visiting the insurer’s website. The renewal process is simple, and you can do it on your own within a few minutes.
- Claim settlement
Every insurance company has a specific process for settling the claim request. It is therefore paramount that you get familiar with the process beforehand, and take note of the necessary documents you must submit while filing a claim. This will come in handy to avoid delay in the claim settlement process, and get an approval on the first go itself. Remember, you will not get any compensation unless you comply with the claim process, and the insurer approves your request.
So, now that you understand the different aspects of health insurance make sure that you do your research well about different insurance policies and choose the one that best suits your interest. Also, don’t forget to read the policy documents carefully before signing the papers.