New Health Insurance: An Introductory Guide for New Buyers

Difficult times test the resilience and only the strongest survive. This may have come of as a hard learning during this past year. With a global pandemic taking the world by a storm, it re-emphasized the importance of health in our lives. Once when health took a backseat among careers and ambitions, now has gained its prime spot in our lives. One such learning from this global frenzy is the importance of having a health insurance policy. Health insurance is an agreement between the insurance company and policyholder where the former agrees to pay for the costs of medical treatment in the event the policyholder or the beneficiaries face an accident or illness. Now that you have a basic idea of ‘what is health insurance’, here’s an introductory guide to buying a new health insurance cover. For starters, there are two types of individuals that buy a health insurance policy - first for safeguarding their health and the other for saving taxes. Whatever be the reason to buy one, there are three essential pointers to remember when buying a new health insurance policy:

1. Buying insurance in a haste often results in misinformed choice.
2. Never completely rely on the advice of friends or agents.
3. Never base the purchase decision solely on price of the plan.

Now that basics are cleared, let’s look how first-time buyers need to evaluate the purchase of new health insurance policy.

Make sure to buy the right amount of coverage

The purpose of a health insurance policy is to provide adequate financial cover in times of need. With a policy limited in coverage, it becomes a hurdle to avail necessary treatment if an inadequate coverage is sought. With the soaring medical inflation rates, it is essential to estimate the future cost of treatment and accordingly purchase a plan to fulfil medical needs.

Keep an eye on some key parameters

Depending on the different types of health insurance plans, there are a few crucial parameters to consider.

Restriction on room rent coverage:

Some insurance companies levy a capping on the amount that shall be reimbursed towards room rent charges. With such a restriction, there is a higher requirement of out-of-pocket expenses for the policyholder.

Co-payment clause:

Make sure to check for any co-payment clause in the policy terms. A co-payment clause requires the policyholder to contribute for the payment of the hospital bill thereby increasing the payment required at the time of claim.

Day-care expenses:

Another nifty feature to check in the policy coverage is day-care expenses. Not all treatments require hospitalization. Some treatments are done within a couple of hours and day-care treatment facility ensures these procedures are also covered under the plan.

Wide range of Network Hospital:

Network hospitals are those that are affiliated to the insurance company. With the facility of a network hospital, availing cashless treatment is possible thereby not requiring hefty cash-flows for the treatment cost.

Cumulative bonus:

Cumulative bonus is a must-have feature in your new health insurance policy. With this feature, the insurance companies offer a higher sum assured for each year not claimed by the policyholder subject to certain limits. Apart from the above, there are few other features that enhance the benefits of a health insurance policy like restoration benefit, medical check-up facility, maternity coverage and more.

Adequate disclosure all essential information

New buyers aren’t aware of this critical point wherein they are expected to disclose all necessary medical information at the time of purchase. Any case of concealed or misappropriated information can lead to rejection of claim by the insurance company. These are some tips to get started with a new health insurance policy for first-time buyers. Make sure to tick all requirements and get a suitable insurance cover.  Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.