The cost of medical treatment is high in India, and inflation will push up the prices even more in the future. To guard against inflation, one of the things you can do is buy a medical insurance policy. Depending on the coverage, it can cover the cost of treating illnesses and undergoing medical procedures. Below we have discussed the key aspects of medical insurance.

Types of Medical Insurance

Here are the major types of health insurance available in India:

●      Individual Health Insurance Plans

This type of policy is aimed at a single individual. Depending on the terms and conditions of the policy, it may also be possible to add the spouse of the policyholder to the insurance scheme.

●      Family-Floater Health Insurance Plan

In this category of insurance plans, the specified members of a family are covered on a floater basis. It means that the insured amount is distributed among the family members.

●      Senior Citizen Health Insurance Plan

It is meant for senior citizens above the age of 65. If you have senior citizen parents, you can buy such an insurance plan for them.

●      Critical Illness Insurance Plan

Also called a Fixed Benefit Health Plan, it is aimed at covering specified critical illnesses such as kidney failure, stroke, heart attack, and cancer. It targets illnesses which are life-threatening and costly to treat.

●      Group Health Insurance Plan

This type of insurance plan is designed for a group of people such as employees working at a company. Each member has access to a specific amount of coverage, and in some cases, they can also add their family members.

●      Top-up Health Insurance Plan

If you already have an insurance plan or can afford it and are willing to pay for the medical expenses up to a certain level, you can purchase a top-up health insurance plan to get coverage beyond a certain level.

Add-ons for Medical Insurance

You can get the following add-ons with your health insurance:

●      Coverage For Non-Medical Expenses

It is an add-on which covers non-medical steps such as ambulance charges, cost of admission, and cost of equipment such as syringes and surgical kits.

●      Room Rent Waiver

Room rent waiver covers the cost of renting a room in the hospital. You can stay in any room without worrying about the cost.

●      Doctor On Call

It covers the cost of teleconsultation with a doctor. With teleconsultation, you can remotely contact a doctor without having to visit a clinic or hospital physically.

●      Daily Cash Allowance

Under this add-on, for each day that you are hospitalised, the insurance company will provide a certain amount of cash. It mitigates the loss of income due to being hospitalised.

Factors to Consider For Buying Medical Insurance

Here are some factors you must consider while buying insurance:

• Premium
• The extent of coverage and amount of sum insured
• Healthcare needs
• Customer support
• The network of hospitals and clinics covered
• Exclusions
• Claim Settlement Ratio
• Lifetime renewability
• Waiting period
• Deductibles

Key Terminologies of Health Insurance Policy

Before you purchase a health insurance plan, it is important to familiarise yourself with some terms to understand your policy:

• Premium: The recurring charge you pay to keep your insurance.
• Network: A collection of medical facilities and hospitals that have agreements with insurance companies to give reduced costs.
• Deductible: The amount of money you have to spend out of pocket before your insurance begins to pay for costs.
• Copay: A certain sum of money you must pay for specific covered services, such as medical appointments.
• Out-of-Pocket Maximum: The total amount, excluding premiums, that you will pay for eligible services in a given year.
• Coinsurance: It is the portion of covered expenses that you and the insurance company split once the deductible is satisfied.

Bottom Line

Buying health insurance is one of the most important decisions of one’s life. It is vital for the financial security of your family.  The best health insurance will give you coverage against various illnesses and give you great peace of mind. You must compare the premiums charged and the coverage offered by different plans to make an informed decision.