Effective Ways To Understand Your Health Insurance Policy

With rising healthcare costs, medical emergencies can entail an overbearing amount of expenses, especially if they involve hospitalisation, surgeries, and other critical treatments. 

For financial support during those times, more individuals are opting for health insurance plans. These schemes’ popularity led approximately 500 million individuals to be covered under medical insurance plans in FY2020, as per a report by Statista. 

Why do you need health insurance?

The importance of health insurance policies has been heavily felt ever since the outbreak of Covid-19. Such coverage plans provide the following benefits during adverse situations.

  • Preserve your savings

Out-of-pocket expenses during medical emergencies can be strenuous and even insufficient. Having an insurance plan can save you from exhausting your financial reservoir. 

  • Stay secured

Opting for an insurance plan at an early age can help prevent anxiety due to unforeseen illness and accidents. This also helps you gain more extensive coverage and aid in better financial management.

  • Address insufficient health cover

In case existing health coverage plans fall short during an expensive treatment, avail coverage under the Aditya Birla health top up plan to finance additional charges without straining your finances.

Before availing these advantages, individuals must have a detailed understanding of an insurance plan’s terms and conditions.

Important points to understand when availing a health insurance plan

While individuals might be motivated to opt for a health insurance plan at the earliest, it is essential to understand what your policy involves in detail. Here are a few terms that you might come across when purchasing an insurance policy. 

  • Waiting period 

Every insurance policy comes with a specified period during which no claims are admissible. This generally ranges from 30 to 90 days, depending on the insurance provider. However, most insurers do not specify a waiting period for hospitalisation due to accidents.

  • Deductibles

These are out-of-pocket expenses that the insured needs to make before his/her policy starts covering medical costs. This is inversely proportional to your healthcare premium. The more the deductible you are willing to pay, the lesser will be the premium.

  • Premium

Policyholders need to pay their insurer a specific amount monthly or yearly in lieu of the medical coverage provided. This is called the premium, and it increases with the eldest insured member’s age under a policy.

  • Co-payment

This is a fixed amount beneficiaries need to pay every time they opt for a particular covered service. Not all treatments come with the same co-payment requirement. Individuals must check this list of treatments under their health insurance plan and the respective costs they need to bear.

  • Out-of-pocket limit

This is the maximum amount a policyholder has to pay to avail the insured medical services in a year. This includes co-payments, deductibles and other such costs excluding premiums. An out-of-pocket limit is provided to save customers from unlimited medical bills despite having an insurance plan.

  • Pre-existing health conditions

These are ailments that an individual suffers from before the commencement of a health insurance plan. Most insurers cover treatments for pre-existing ailments after the waiting period is over, while others exclude these services altogether. Check your insurance provider’s policies to ascertain the coverage for such conditions.

  • Policy exclusions

Most importantly, check the list of treatments not covered under your chosen plan. Besides standard exclusions like self-inflicted injuries, venereal diseases, and dental treatments, different insurance providers may have specific treatments not insured under their policy. 

Besides, several insurers offer additional coverage through plans like Aditya Birla health insurance super top-up plans brought to you by Bajaj Finserv. These policies provide reimbursement of additional expenditure of critical illnesses not covered by existing insurance plans. 

Additionally, most insurers specify a survival period in case of critical illness cover. This is the minimum number of days a beneficiary must be alive for to avail insurance benefits.

About Shailendra Kumar

Shailendra Kumar is an experienced Financial Consultant and Tech Reviewer who has 7+ years of experience in the field of finance, business, and technology. He is very passionate to write about Finance, Business, Technology, Gadgets, Digital Marketing, Fashion, Lifestyle, etc.

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