Health insurance is a great necessity in today’s day and age. While it is important to get a health cover, it is equally important to get a cover that is appropriate for you. Health insurance, like most other kinds of insurance, is people specific. This means that a cover that suits your friend will not suit you because your requirements are different. So you have to be very careful and understand how health insurance works to be able to select the proper cover for yourself and your family.
Let’s Understand Health Insurance Plans
Let us begin by understanding how health insurance works. Health insurance is a medical cover that you get from an insurance provider in exchange for the premiums that you pay regularly. The insurer promises to reimburse your health costs as long as you keep the policy active by regularly paying the premiums.
There are different types of health plans that cater to different needs. While some plans only process the claim if you stay a night in the hospital, others offer compensation for the OPD expenses. Some health plans only cover specific illnesses such as cancer and others combine all these covers under one comprehensive health insurance umbrella. You therefore have to analyse your own requirements and see which type of health insurance plan is best suited for you.
Problems of buying incorrect health cover
There are many problems that can stem up if you buy an incorrect kind of health insurance plan. Let us assume you are a 45-year-old father of two children. You buy a basic health insurance plan that has exclusions for diabetes and hypertension. Unfortunately, owning to your high stress job and poor lifestyle habits, your blood pressure shoots up and you require hospitalisation. When you try to make a claim on your health plan, the claim is rejected as hypertension is not included in it. You are left with no option but to drain your bank account and pay the bill yourself.
You therefore need to understand the exclusions and inclusions of the health policy you are planning to buy, before you make the actual purchase.
Now let us assess another scenario. Your father was diagnosed with cancer a few years ago and your grandfather expired due to blood cancer as well. The disease is hereditary and you are at a high risk of getting it too. Keeping this in mind, you buy a critical illness health insurance plan when you are young and healthy. Unfortunately, at the age of 39, you are diagnosed with liver cancer. You get the sum assured from the critical illness plan and travel to the US and get treated instantly. This helps you recover and become cancer free.
In this case, understanding your own requirements and buying a matching plan helped save your life and your finances as well. So you have to be very careful about the type of health plan you choose to avoid making blunders that can even cost you your life.
Individual or group – which type of health insurance is better?
As a salaried person, you will in all likelihood get a group health cover from your employer. But is this cover sufficient? Well, while a group health cover is very useful, it is limited in its scope and you can do very little to customise it. So it is always a good idea to complement your group health plan with a proper individual health plan. You can customise the latter after analysing your own requirements and get a better deal out of it.
Buying a health insurance plan is not enough. If you buy the first plan that you come across, you will do more harm than good to yourself as well as the other members of your family. It is therefore a good idea to list down your own requirements first. Then run an online comparison of all the available plans and see which plan has what features on offer. You may compare quotes on Coverfox.com which is an online insurance broker. Then you can locate the most suitable cover for yourself and stay protected in the most comprehensive manner possible. You can then fight all the health hurdles with ease and not worry about losing your hard earned money either.