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Four Things to Know about Health Cover Plans

Men walk past a mural of frontline workers amid the spread of the coronavirus disease (COVID-19), in Mumbai on December 21, 2020. (REUTERS)

Men walk past a mural of frontline workers amid the spread of the coronavirus disease (COVID-19), in Mumbai on December 21, 2020. (REUTERS)

Customers should always consider the scope of the coverage. One must weigh the balance between the premiums paid and the benefits the plan has to offer.

One thing the year 2020 stressed on apart from maintaining good health, hygiene and strong immunity was having a sufficient health and life insurance cover. The pandemic mostly exposed those who were surviving on very limited budget and resources. The year brought more bad news for those who lost their jobs. To add to the misery, high hospitalisation expenses during the coronavirus pandemic forced many to take tough decisions.

Having proper health coverage is something that can’t be stressed enough. Not only just during these times of the Covid-19 pandemic, a right health cover can help in many life situations for oneself and family. Here are a few things one should keep in mind while buying a health plan.

1. Customers should always consider the scope of the coverage. One must weigh the balance between the premiums paid and the benefits the plan has to offer. The family’s needs must also be evaluated before finalising. For instance, a plan with a sum insured of Rs 5-10 lakh may not be sufficient for a family with senior citizens or with a member suffering from a critical illness.

2. One must also look for claim settlement ratio, premium loading, sub-limits, co-payments and network hospitals depending on family’s requirements, convenience and budget.

3. Experts suggest that health cover should be at least 50 percent of the annual income or the life cover should at least cover the cost of a coronary artery bypass graft in a hospital of choice. One must evaluate and understand which policy would suit the needs of their family better.

4. One must also check the flexibility to increase the sum assured for a hassle free medical treatment. It is important to compare policy with other plans, analyse documentation, claim settlement ratio to better understand the plan. The Insurance Regulatory and Development Authority of India (IRDAI) suggests that the coverage of an insurance plan must depend on an individual’s needs and his/her affordability.

first published:December 27, 2020, 08:55 IST
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