Health insurance necessary for everyone -:
In this article, to know all the things related to health insurance, why should it be taken, then what should be taken care of before taking it and are going to know all the things related to health insurance.
The COVID-19 pandemic has made us realize that the future is uncertain, and medical emergencies can take place anytime. We all are following social distancing and taking health precautions to avoid the spread of COVID-19 but along with precautions we need health insurance as well so that we can protect our savings as well because Hospitalisation can burn a hole in your pocket and derail your finances.
It will become even tough, if the person who brings in the money, is now in a hospital a bed.
All this can be avoided by just paying a small annual fees premium which would lessen your stress in case of medical emergencies.
A good health insurance policy would usually all cover expenses made towards doctor consultation and hospital fees, costs towards medical tests, ambulance charges, hospitalization costs, and even post-hospitalization recovery costs to a certain extent.
Need of health insurance ?
Let me explain this by narrating two very short anecdotes. So the first anecdote is about my neighbor. He is extremely rich. He is a business man in mumbai and he makes insane amount of money.
During this pandemic, several of his family members got Covid and they had to be hospitalized. And you might also relate with this story that many people who were admitted in hospital, ended up amassing massive amounts of bills.
So in his case, his family ended up spending 50 to 60 lakhs in terms of treatment, which even to a rich family is a huge amount. So the point that I want to drive home is very simple, that the world is getting more and more uncertain.
There are new healthcare related challenges that are coming up and we don’t know what kind of emergency expenses might amass. Now, if as a middle class or an upper middle class family, if you had to unfortunately go through such a situation,
it can put immense stress on your entire family for even a generation to come. ther Now, if you’re convinced that buying a health insurance is actually the right.
Specifics of health insurance -:
I highly advocate that you have a health insurance, then comes a series of questions.
Which health insurance should I buy?
How much coverage should it have?
Which hospitals will it cover?
What type of diseases would it cover?
Should I buy it for my entire family or should I buy it at an individual level?
There are a host of questions. And trust me, buying health insurance is so complicated. It’s so complicated that people get really bogged down in terms of the research.
So let me break down this question in this article
So let me ask and let me go through some of the key questions or the most important questions that you need to be aware of before you are buying your insurances
should I buy health insurance just for me as an individual or for my entire family?
So in my case, I’m an individual and I have a family of three. So me, my wife and my kid. Why am I not considering my parents? Because I’m above 25 and I’m not dependent on my parents. So they would constitute as a separate family. So am I better off buying an individual health insurance for me
should I take one plan that covers all three members of my family?
So the answer is that I should take a health insurance that covers all three pool of members of my family. And let me explain this I take a cover of 15 lakhs for my family, and if one of the family members gets sick, the expense, let’s say, eight, then 7 lakhs are remaining.
Now, if the second member also has to go through some kind of medical emergency, then the money from that 15 lakhs can again be availed. So that’s a 15 lakh cover for the entire family. On the flip side, if I’m buying insurance just for me, then I can’t use that 15 lakh cover for my entire family.
I can just use that 15 lakh cover just for me. So if you buy a health insurance that covers all three or four members of your family, that entire pool of the money can be utilized by different family members.
how much should I take? Should I take a 10 lakh rupees policy or should I take a 20 or 30 or 40 or 50 lakh policy? What type of cover should I take?
let me quickly explain by example, if for some reason, like one of the members of your family has to get hospitalized and we end up spending 30 lakhs.Right And if your cover is only 10 lakhs, then you will be reimbursed only up to 10 lakhs because the cover that you had bought was only 10 lakhs.
should I have taken a 30 lakhs cover?
this really depends on your individual circumstances, your age, your health condition, number of family members, etc. who is a specialist in terms of healthcare insurance, she told me categorically that people usually take a cover of, 10 lakhs to 20 lakhs.
That’s the general range. Now, it’s needless to say that if you take a higher cover, you will have to pay higher premium every year. For example, if you buy a cover of 10 lakhs for a good insurance, then your premium amount will come approximately 20000 per year.
What if a bad situation like corona virus where people actually ended up being 60, 70, 80 lakhs hospital bills, what I do then? You only have a cover of 10 lakhs. So in such a situation, you can actually adopt for a hybrid plan. Hybrid plan essentially means that you buy a Base cover, for example, 10 lakhs, and then you take a top up.
It is called a super top. Companies term it differently, it’s usually a top up, and you can buy a top up of 50 lakhs. So let’s assume that you wanted an entire cover of 60 lakhs. Buy a Base cover of 10 lakhs and buy a super cover of 50 lakhs.
Now in these hybrid plans where you’re having a base cover and a super cover, you can buy the super top up separately.
What type of facilities are include under your health insurance ?
it would depend on your plan and specific policy that you purchase. But generally speaking, if you are a healthy individual and if you are taking a health care insurance, then almost all the diseases are covered from cancer to hypertension, diabetes, etc. So if such a disease occurs after you have bought a health insurance, you will be covered by your health insurance.
That is one. Hospitalization is generally covered. Day care is generally covered Usually consultations with doctors where you’re just going and speaking with a doctor and, you know, getting that bill and getting it reimbursed.
sometimes people have special requirements. For example, you want to be treated only through homeopathy or you want to be treated only through ayurveda.
Now, these type of insurances also exist. So identify whether these are your requirements or not. If these are, then buy a policy what matches with this.
You must look at room types -:
Because what you might imagine is that I have bought a premium insurance.Now, you will get an executive suite in some hospital, then you go and fight that why am I not getting it? So that situation should not arise. you can check what type of rooms you will be eligible for if you’re buying any health insurance policy .
There is something called a sub disease spend clause.
if your buying health insurance and that health insurance covers, hypothetically speaking, 10 diseases. But that policy also indicates that, you know what? If you get particular disease like a kidney transplant, we will only reimburse five lakhs. Now, that’s a sub disease clause spend. heare are assigning a certain dollar value to particular disease.
claim processing time and claim processing rates.
These days, almost all the major health care insurance providers have a very good claim processing rates, but they can really mess you up in terms of claim processing time.
This is especially true in situations where you get reimbursed, where you put up the money first and then asked for reimbursement from your insurance cover. So please be wary in how much time do they process such reimbursements. So check all.