The Hindu Business Line : How to choose health cover

With medical costs soaring , health insurance plans have become inevitable. But how many of you young readers have a health cover? Starting early will let you benefit from a lower premium and avail of cover for medical conditions diagnosed over the years. Some insurers also give a discount on policy premium at no extra cost with each ‘no claim’ year. So, give it a thought and let not your little savings be wiped off by medical bills.

With Life Insurance, many insurers are know offering a comprehensive health cover through health insurance policies, which differ from the normal life insurance policy on many stands. A basic life policy is a death cover, which guarantees payment of the sum assured on death or maturity, whichever is earlier. There will be only one claim in the lifetime of the policy — on the death of the insured and there is no promise of covering medical expenses of any critical/non-critical nature during the insured’s lifetime. Whereas a health policy is more broad and it covers all hospitalisation charges. The insured can claim against the policy up to the value of sum insured.

The health plan (also termed Medi-claim policy) comes with a plethora of variants from which you would have to pick and choose a scheme to fit your needs. Following are a few aspects that you have to mull over before narrowing on a health insurance policy:

Coverage

Your first step should be to determine all your foreseeable heath care needs. Your health care needs would be based on your current health status, family history of illness, any special medical conditions, etc. The policy you choose should cover your expenses foreseen on the above grounds.

Also, browse the Net to compare policies offered by different insurers on parameters of extent of cover, ailments not covered, quality of medical centres in the net of the insurer and freedom of choosing the doctor.

If you are already under the health cover of your employer, then find out whether your dependants are covered under the scheme.

And if you find the policy not giving a sufficient cover, you might as well buy a policy tailored to your needs. But, remember, you can claim only for the unsettled portion of your medical expenses from your personal insurer. You cannot lodge a claim over the same bill with both your employer and your personal insurer.

Cost

If you do your bit of homework before signing an insurance deal, you could avoid paying overblown premiums for a cover that you actually don’t require.

The premium on the policy would vary based on the applicant’s age, health status and the sum insured desired. Also, consider the option of a family floater policy (sum insured floats over the entire family), where you pay single premium for the entire family and be relieved of following up the renewals separately, making it cost-effective as well.

Furthermore, the obvious benefit that comes with health policies is the tax benefit under Section 80D. The premium paid is deductible from gross income for income-tax calculation reducing the tax liability.

On the other hand, if you think you would act smart by buying a blanket policy with an exhaustive coverage, do bear in mind, the premium would also be high and that health insurance is not an assurance contract. You will not be redeemed the amount of sum insured on maturity of the policy unlike the usual life policies.

Health insurance is the means to a hassle-free life. Give the choice of that policy a little diligence and make your life easy.

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