The Buyt Desk
Health insurance buyers in their early 30s are confused as to what insurance to buy, what riders to go for and how much coverage to opt for. There are many things that one should know before purchasing a health plan that suits your needs. Here are 9 things that you must take into consideration-
Health insurance policy vocabulary millennials should know
Sum Assured – Sum assured is also known as sum insured which is the maximum amount that can be claimed. And the premiums you pay monthly /quarterly /half-yearly /yearly /one time depend on this sum insured.
Floater Policy – A group insurance especially a health insurance that covers the whole family is known as a Family Floater Health Insurance policy.
Cashless Claim – Cashless claim is when the insured can claim their medical bills without paying any cash at the hospital. The insurer will pay all the bills that are within the limits of insurance.
Exclusions – Not all diseases or health conditions are covered under the health policy. Each plan explicitly pens down the list of health conditions, diseases or situations that the health plan doesn’t pay for. This list is known as exclusions.
Deductible – Some plans do not pay the complete bill but only a portion of it. The amount the insurer pays can be a percentage of the bill or whatever is outstanding after the insured bears the pre-decided amount. This amount which the insured bears is known as the deductible. The higher the deductible lower are the premiums.
No Claim Bonus – When the insured doesn’t claim anything throughout the tenure, he/she gets no claim bonus. This bonus can be a discount offered on subsequent premiums or increasing the coverage at the same premium or offering some health checkups for free. The bonus keeps accumulating every no-claim year.
Insurer experience – Most insurance buyers will look at the sum insured, coverage of aliments, premium and list of hospital tie-ups for cashless transactions. But most fail to see the track record of the insurer and the plan. It is critical to check the time taken by the insurer to settle the claim. Social media and insurance companies’ websites will give you a good sight of customer reviews. Understand the previous customers’ claim settlement experience. Go for an insurer who has a track record of claim settlement ratio being a minimum of 95%.
Critical Illness rider – Knowing your family history and your current health conditions you can go for a Critical illness rider. This is an add-on to your existing health cover. This rider covers conditions like cancer and paralysis.
Waiting period – Health insurance companies have a list of conditions that will be covered only after some tenure from the day of buying insurance. This tenure is known as the waiting period. The waiting period differs for different conditions under different plans. So make sure it suits your requirement. For example – if you are planning to have a baby in the next year and your insurance plan has a waiting period of 3 years to claim pregnancy bills, it will not help you. Even pre-existing conditions have a waiting period.
Summing up
The pandemic has made everyone realize the importance of health insurance. Life is changing rapidly and healthcare is turning out to be very expensive. Now the millennials are more cautious and are securing their health. Serious health conditions will drain you financially and mentally if you do not have a good health insurance plan. In case of a health emergency, one should avoid financial worry but focus on health and recovery. This is possible only when the insurer is taking care of your bills. One should be well informed about all variations that the health insurance company provides so that a good plan can be selected to safeguard oneself and his/her family. Understand terminology and vocabulary used in healthcare policy. This will help you in selecting and buying the perfect health insurance.
