The last few years have exposed how mortal we are. A medical emergency, illness, or injury can happen at any time and anywhere. And the treatment can create a heavy financial burden on people. Having health insurance is like having a financial safety net. Health insurance covers your medical expenses in case of accidents, illnesses, and injuries and protects you from that financial burden. That is why it is advisable to buy health insurance as soon as possible.
While health insurance takes care of a large part of your medical expenses, it won’t necessarily cover the cost entirely. However, many people believe that having health insurance means they won’t have to pay anything from their pocket. Quotes from top insurance providers only settle the amount as per the policy terms and conditions. However, to ensure that you get the maximum possible coverage, you need to be aware of certain aspects which are discussed below:
What is Health Insurance?
Health insurance is a type of insurance that pays for your medical expenses. The policyholder pays a premium amount as per the insured amount to receive its benefits. There are two ways in which your insurance provider can pay your medical expenses:
- The insurance provider directly pays the hospital and you don’t have to intervene.
- You pay for your medical expenses initially and then claim against your policy. The insurer will reimburse your money as per the terms and conditions of the policy.
Why Do You Need Health Insurance?
There are several benefits of having health insurance. Some of them are-
- Financial security: The most obvious benefit of having health insurance is the financial security you get. The cost of treatments is rising every day and the cost of the most advanced treatments is huge. With health insurance, you not only get coverage for treatments but also coverage for other hospitalization expenses.
- Better savings: Any illness or injury can take a toll on your emotional health. The added burden of paying for the treatment also creates financial strain. With health insurance, you won’t have to use your savings to cover any medical emergencies. You can freely save and spend your money as you like.
- Cashless treatment: Almost all insurance providers have started offering cashless treatment benefits. Under this, the insurer directly deals with the hospital and pays the treatment cost to the hospital. Therefore, you do not have to worry about paying the sum out of your pocket and waiting for reimbursements.
- Tax benefits: Under Section 80D of the Income Tax Act, you can claim tax deductions for the premium you have paid for your health insurance. The deduction differs as per the policy, premium amount, and age.
Types of Health Insurance
There are multiple health insurance policies available. The three best health insurance policies are:
- Indemnity health insurance: This is the most basic type of health insurance that every person should have. Under this policy, the insurance provider reimburses the insured for the actual treatment costs and hospitalization expenses as per the sum insured.
- Top-up health insurance: As the name suggests, the top-up health insurance policy provides wider coverage by supplementing your previous policies. For example, if you have a health insurance policy from your employer, you can get top-up health insurance separately to get better protection and wider coverage. Some top-up plans are also used to replenish your sum insured if it is exhausted.
- Fixed benefit health insurance: This type of health insurance is taken in case of a predetermined illness or chronic illness. It also covers several expenses that might not be covered under your existing policy.
Ways to Get the Maximum Claim from Your Health Policy
The following ways can help you get the maximum claim from your health policy:
- Be honest: One thing that you should never do while buying a health policy is to lie about your medical history. If you hide your medical history to get the maximum claim, it won’t work. Once the insurance provider learns about it, not only will your claim be rejected, but your policy will also get canceled. Therefore, be truthful about your history and details to get the maximum benefit.
- Claim from several policies: Nowadays, many health policies are available at less premium. A health insurance calculator can help you calculate the premium amount. Having several health policies will give you widespread coverage and a better safety net. If you claim from several policies, there is a chance that you might get the full amount of coverage from the insurance providers. Other benefits of having multiple policies include tax benefits and having another option in case of claim rejection by one policy.
- Get insurance early in life: Health insurance policies have a waiting period. It is a fixed duration during which some specific illnesses will not be covered under your policy. This means that you will get nothing from your insurance provider for medical expenses of the specified diseases. Getting health insurance early in life will ensure that you pass this waiting period without any worries.
- Timely renewals: Renewing your policy on time is integral to getting the maximum claim from your policy. Without timely renewals, your policy might lapse leaving you with no financial aid.
- Restoration benefits: Having restoration benefits with your policy can also help you get the most out of your health policy. If your entire sum insured gets used up during treatment and you need to get another treatment in the same year, you will not be able to get anything from your insurance provider. On the other hand, if you have restoration benefits, your insurance provider will restore the whole sum insured on its own and you can make a claim even after exhausting your sum insured once.
- Avoid sub-limits: Sub-limits are placed by health insurance providers for certain diseases and treatments. This means the insurance provider will only pay a predetermined percentage of your medical expenses. Therefore, avoid adding any sub-limits to your policy to get the maximum claim out of your policy.
The right health insurance policy can save a lot of time, hassles, and money for you. Before buying any policy, read the terms and conditions well. Follow the above ways to get the maximum claim from your health policy and reduce your financial burden.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.