For long, young individuals have believed that health insurance policies are for old people. But nowadays, they have realised the importance of health insurance policies. Now, they are buying policies in their 20s and 30s.
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Critical illnesses, disabilities, diseases, and medical emergencies are not just confined to the elderly. Also, medical inflation in India is at an all-time high rising over 8 percent, thus, paying for treatments can take a massive toll on your savings. Therefore, to protect from these unforeseen situations all young individuals need a health insurance plan.
How hospital room rent sub-limits can impact your health insurance claim
Here are 10 things you should consider before making a decision
Type of policy required: Depending on your needs you may choose a policy or a family floater to cover your family as well.
Policy duration: You can choose 1, 2, 3 years and so on. If you are satisfied with all the benefits and terms of your policy, you may choose a longer term.
Claim settlement ratio: Claim Settlement Ratio (CSR) is the indicator of an insurer’s credibility. It shows the percentage of claims that an insurance provider settles in a year out of the total claims it receives. Ideally, the claim settlement ration of your policy should be more than 85 percent.
List of network hospitals: You should carefully check the complete list of network hospitals given in your policy to make sure the nearest and the best hospitals are covered. Also, the list should have hospitals where you can avail cashless treatment.
Claim settlement process: Claim settlement is the process by which an insurer pays money to the policyholder. Your health insurance policy should have both cashless payments and reimbursement of costs.
Policy features: Make sure your policy has features like hospitalisation cover, maternity cover, daycare procedures, add-on cover options, etc.
Room rent capping/ sub limit: Room rent capping or sub limit is the limit of hospital room cost that is borne by the insurance provider. This can be a fixed sum, or a certain percentage of the total sum insured. For instance, for a policy of Rs 1 Lakh the room rent capping could be 5 percent or Rs 5,000 per day. If the room rent exceeds the capping then the extra cost will not be borne by the insurer and a certain percentage deduction in other costs may also occur.
No-claim-bonus: No-claim bonus is a reward given to the policyholder for having a claim-free year. Make sure your policy has this feature. A no-claim bonus of more than 5 percent is ideal.
Waiting period: A waiting period is a fixed time span after which a select list of ailments starts getting coverage under your health insurance policy. It usually includes pre-existing diseases, critical illness, maternity benefits, etc. As per your needs, choose a policy that has the right waiting period for you.
Policy premium: It is important to plan and budget your health insurance expenses. Go for a policy that fit right into your budget but remember that the higher the coverage amount the more is the premium and vice versa.(Edited by : Sudarsanan Mani)
