Before 2020, health insurance did not top the list of when it came to financial planning. But now two years into a pandemic, the times have changed. There is a drastic shift in perception of buyers concerning health insurance not just as a tool to save tax, but an honest approach to managing the increased cost of healthcare.
While the medical inflation still looms around the 8% mark, there is no denying that treatment expenses are not something that can be managed out of your savings. In some cases, it can wipe out entire savings when it comes to medical treatment. That’s when a health insurance plan comes to the rescue.
What is health insurance?
Let’s first understand what is health insurance? Healthinsurance is a contract between you, the policyholder and insurance company where the latter agrees to offer financial coverage for treatment specified in the policy terms. In return for this, the insurance company bills a cost which is know as the health insurance premium.
Such health insurance policies cover not just you, but also your family. Although, it depends on the type of policy chosen and the coverage opted therein. Health insurance plans can be purchased to cover standard age-related ailments to even critical ailments that are fatal.
These are some essential pointers to skim through when buying a health insurance cover in 2022:
*Coverage for COVID-19
The single largest reason for increased importance of a health insurance cover is the COVID-19 pandemic. Considering the severity of this ailment, it is advisable to shortlist a plan that includes coverage for it. In addition to that, the pandemic is not over yet. With newer variants being detected after each wave, it is imperative to seek protection against this ailment even in 2022.
Another nifty feature to keep an eye on is the cumulative bonus. It works on the lines of no-claim bonus in a motor insurance policy. However, the premium isn’t reduced during renewal, but the sum assured is increased for the same premium amount. Using this feature, you can take advantage of a higher sum assured when it comes. Also, it isn’t every policy year, a claim shall be raised and that’s where a cumulative bonus helps enhance your sum assured amount.
*Cashless hospitalisation and network of hospitals
Traditionally, health insurance plans compensated for the cost of medical treatment. But for that, it required you, the policyholder, to bear the expenses first. Modern day insurance plans help avoid a cash crunch by making available the facility of cashless treatment. In such facility, the insurance company directly pays the hospital for the treatment cost without you requiring you to pay for it first. But a caveat for such cashless hospitalisation is you need to seek medical treatment at a network hospital. The wider the network, the better it is to seek necessary treatment.
*No capping on expenditure
You next health insurance policy must be checked for any limit or capping on expenditure. Room rent, doctor’s fees, surgeon charges are some limits that insurance companies place. This way, any treatment cost will limit the expenditure to a specified amount only. Thus, you must look for a policy that offers lower capping when it comes to such expenses. *
* Standard T&C Apply
These pointers are a smart way to buy a suitable health insurance plan in 2022. While you are at it, do not forget to shortlist and compare health insurance plans that helps in picking a policy that checks all the right boxes.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.