The spread of Covid-19 in early 2020 led to massive economic losses across the globe. The loss of life was worse, with over 5 million deaths as of end-November 2021, as per the World Health Organization.
Obviously, the inquiries for and sale of health insurance plans have
picked up in the last two years. The Indian insurance companies even came up
with Covid-specific insurance plans. If you, too, are on the lookout for a
reliable health insurance policy, you must take note of the following points
before you make the final choice.
- The rising cost of healthcare
While healthcare costs are bound to increase in a pandemic due to
demand exceeding the supply, the Indian healthcare sector has seen costs going
up even before the pandemic came into the picture. In 2018, for instance, a
study highlighted that healthcare costs were to rise at double the rate of
inflation.
So, while the overall inflation rate could be around 5-7%, the
inflation in healthcare could be somewhere between 12% and 15%. This trend can
and should worry us all, as this means that any serious ailment can eat into
your savings accumulated over many years.
- Importance of Sum Assured
While buying an insurance policy, the premium amount is the headline
that most buyers focus on. The usual thought process is to get the lowest
possible premium. Even though this approach has its benefits, focusing on
premium alone could end up in a disaster. The reason being that if someone is
focusing on premium alone, then the sum assured is not being paid attention to.
Ideally, identify your needs and settle for a sum assured that will be
sufficient for your needs at least for the next few years, taking healthcare
inflation into account. Once you have identified the sum assured, then start
looking for policies, and subsequently, you can create a shortlist based on
other factors.
- Waiting period
Getting health insurance or even taking steps to get one is
commendable. However, many people commit the mistake of applying for health
insurance after the need for it has already come into the picture. For example,
many people try to get health insurance when they decide that it is time for them to
start a family.
The idea here is to get maternity and associated costs covered in
health insurance. However, such people are greeted with the term ‘waiting
period’ to their surprise. The waiting period is the time period after the
policy is issued in which certain specified treatments are not available under
the insurance. Maternity, knee replacement, cataracts, are among the common
treatments or procedures that have a waiting period.
- Sub-limits and exclusions
Other than the waiting period, there can also be ailments or
conditions that a health insurance policy does not cover. It is crucial for you
to know all these details before you sign on the dotted line.
Then, other than medical exclusions, there are also some sub-limits on
some health insurance policies. For instance, some policies cap the room rent
in case of hospitalization. Some other policies could ask you to co-pay a
certain percentage of the hospitalization bill.
- Track record of the insurance company
This is probably the most important aspect. Even if the premium
charged by an insurance company is very low, if the claim is rejected when the
need arises, the savings in premiums would be of no use. On the contrary, if
the premium is a little high, but the insurance company has a strong track
record of honoring claims, it can be a big relief in times of medical
emergency. Moreover, a good company will also have minimum restrictions in the
form of exclusions or sub-limits.
Take note of the above-mentioned aspects to shortlist and then choose the health insurance policy that suits you the best. Be careful that you are not underinsured, as that can also have the same result as being uninsured altogether.
