6 Factors to Consider When Opting for a Medical Insurance Policy

Dec 02, 2018 | 2 weeks ago | Read Time: 3 minutes | By iKnowledge Team

Before opting for a medical insurance policy, here are few factors that you must consider.

Many people fail to make the most out of the benefits offered by their health insurance policies. Knowing that health insurance can help manage healthcare costs, it’s crucial to pay attention to all the aspects of the policy and all the health insurance queries beforehand.

Health is precious but maintaining good health is a challenge in today’s time, especially, with the ever-increasing health costs. In such a scenario, you must get the cover amount right, as there’s always a danger of falling short of the actual medical expenses. For many prospective health insurance buyers, a major stumbling block comes when they are unable to figure out the ideal coverage amount.

Before deciding the coverage amount, an individual must keep in mind, what seems sufficient today, might be meagre in the next couple of decades. Medical inflation is high and thus, when you decide on the ideal amount, at least 15 years must be taken into consideration. Let us understand that with the help of this simple calculation:

Let’s assume a 40-year-old person who has taken a policy of Rs. 5 lakhs for his medical coverage. Keeping inflation of 15% in mind, the inflated medical coverage would be translated to Rs. 14.12 lakh at the age of 65 years. Thus, this basic calculation of 25 years can be kept in mind when planning the health coverage amount you need.

There are several factors which you must ponder upon to make the most out of the medical insurance policies:

  1. Check inflation rates: As suggested above, inflation does make a big difference in your financial planning, and thus it cannot be overlooked at any cost. A breakdown of inflation can help us understand this better. For instance, if you have a coverage amount of Rs. 8 lakhs in 2013, considering inflation at 12%, the ideal amount you will need in 10 years’ time is between Rs 26 to 28 lakhs. Now, if we consider a 20-year period, you will need a cover between Rs. 44 to 48 lakhs, assuming the inflation rate at 15%.
  2. Choose the right insurer: When selecting the vendor, it’s crucial to check the claim success. There are many vendors who offer customizable plans at affordable rates. However, their claim settlement ratio is below 95%, and thus they cannot be trusted. Read through the documents carefully and go through all the terms and conditions, to maintain transparency.
  3. Do it yourself online: Don’t let your insurance agent fill the form. Avoid discrepancy in information by filling it yourself online. Make sure you specify the existing illness or any disease so to maintain transparency and avoid any disputes.
  4. Conduct medical tests: Before buying the insurance, make sure that medical tests are thoroughly conducted. These tests will help you understand the health status and decide the right plan. Based upon this, you can upgrade or downgrade the premium.
  5. Check policy documents: Checking policy documents is crucial, if you are not happy with the services being provided, you have the option of policy surrendering within 15-25 days.
  6. Check the riders: Insurance companies such as Aegon Life offer riders which help you seek cover against critical illnesses. Under Aegon Life’s iTerm Plus Plan, you can seek coverage against 36 types of critical illnesses. This plan, with numerous benefits, provides features such as claim for multiple unrelated cancers, tax benefits on premiums paid, flexibility premiums and so on. Thus, if you have family members suffering from critical illnesses such as cancer, then such plans would help overcome financial burden.

Hospital expenses are constantly rising, and in time, these will reach beyond the common man’s affordability. The factors above will help you get the right health insurance policy and ensure that you care about medical insurance policies.

II/Oct 2018/4485


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