Understanding Various Benefits in Health Insurance

In this podcast from the Financial Vaccination series hosted by Manipal Cigna Health Insurance, Mr. Amit Chhabra, Business Head at Policybazaar.com—instrumental in showcasing an impressive turnaround for the health insurance business unit and making Policybazaar.com a one-stop-shop destination for all online health insurance needs—speaks on the many benefits of holding a health insurance policy.

Introduction

At some point in life, most people would need medical care. Even if you are in fine health right now, health insurance can come to your rescue when you most need it. Unforeseen medical emergencies such as injuries, diagnosis of an illness, accidents — don't come with warnings. Hence, having health insurance not only preserves your health but also secures your financial position.

Mr. Amit Chhabra gives you an insider look into the many benefits of having a health insurance policy, critical to upholding your health, treating illnesses and accidents.

Why You Need a Comprehensive Health Coverage

Comprehensive health plan offers an extensive range of healthcare services. The coverage can help prevent or deal with hospital and treatment costs concerning injuries, illnesses or medical emergencies. A comprehensive health plan also covers several allied costs that accompany hospitalization. For instance, if an individual does not require hospitalization but needs day-care treatment such as chemotherapy, these too are covered by a comprehensive health plan.

With a comprehensive health insurance plan, you can avail of:

• Built for the Common Man 
  A health insurance plan provides critical financial protection in the event of an accident or sickness. The average person without health coverage can be exposed to these costs. And in the absence of a health plan, leading to debt and a dent in their savings or investments. Since one cannot control external problems, what can be kept in check is the financial impact of a major illness. Today, purchasing a health insurance plan is easy and convenient and can be easily bought online at an affordable cost.
   
• Provides Financial Security 
  The cost of healthcare has risen exponentially than the general rate of inflation. With time, this trend is not likely to slow down. Without access to health coverage of any kind, it can get unaffordable to pay down for expensive hospitalization. A health insurance policy can extend you the substantial financial support you need during medical emergencies as a financial safety net covering costly medical expenses. In addition, having the potential for improved health, increased savings, consistent check-ups, and financial safeguards are critical advantages of purchasing a health insurance plan. 
   
• Offers Cashless Treatment 
  A comprehensive health insurance policy with a cashless treatment facility eliminates all the difficulties of arranging money to pay for medical bills. It takes care of reimbursement hassles and does away with paying required medical fees upfront. Through the cashless option, your insurance company settles medical bills directly with the hospitals and prevents financial burden while giving you peace of mind.
   
• No-Claim Bonus 
  If a policyholder has not claimed insurance in the previous year, the insurance company rewards in the form of an additional sum insured policy, also known as a cumulative benefit; or discounts on premium or rewards. This benefit, known as a no-claim bonus, is a reward bestowed by the insurance company on the policyholder for not claiming their health insurance. You can consider a no-claim bonus as a pat on your back for maintaining excellent health during a policy year.
   
• Member Loyalty Benefits 
  You can also receive discounts for additional health insurance policies from a single insurance provider. For example, suppose you have a health insurance policy from a specific insurance provider and purchase supplemental policies for your immediate family and extended family members from the same insurer. In that case, you could receive discounts on premiums. Such member loyalty programs offered by health insurance companies are a win-win benefit. The company achieves the objective of holding on to the customer while the customer receives savings in the form of discounts.
   
• Restoration Benefits 
  This feature in a family floater plan reinstates the total sum assured if the entire amount is used up in a specific policy year. When covering all insured members in a health insurance policy, restoration benefits are especially crucial if one family member accesses the entire sum insured at the beginning of the policy term. The total amount of the sum assured is automatically reinstated despite the sum insured being exhausted through this benefit.
   
• Free Medical Check-ups 
  A comprehensive health plan entitles you to avail of free annual check-ups or medical check-up once every two or four years, based on when you purchased the health plan. This is an essential benefit as having this facility can help you take the necessary steps to correct any health issues seen from the medical reports. And since it is crucial to keep track of one's health these days, availing of your free medical check-up from your health insurance policy can help ward off unnecessary health conditions.
  
  When buying a health insurance plan, look into:
   
  • Adequate sum insured. Having the highest sum insured amount is exceptionally critical given current times and the rising cost of hospitalization and medical expenses. A policy with a minimal sum insured may not suffice to meet treatment costs. Hence, it is vital to have an adequate amount to save you at the time of distress.
  • Room rent limit. Some health insurance plans impose limits on the coverage of boarding expenses or the hospital room rent. This is known as a room rent limit. Typically, room rent is capped in the range of 1 to 2% of the sum insured. Remember to read the documents carefully to ensure that you do not have capping on room rent before purchasing a health insurance policy.
  • Co-payment. A co-payment is a form of sharing cost under a health insurance plan. It is a cost-sharing feature that you need to pay from your pocket based on the cost of covered services between you and the insurance provider. Ideally, it can be a good idea to purchase a plan without the co-payment feature. However, if you decide to take on co-payment, look into the amount as it varies from one insurance provider to another.
  • Claims settlement ratio. As a vital factor to consider when selecting a health insurance provider, looking into its claim settlement ratio tells you about the insurance provider’s claim settlement ability. These claims settlement ratio numbers are available publicly to help you make the right choice.

Conclusion 

The demand for health insurance in this day and age is a financial reality for every Indian. Staying covered can give you the confidence and happiness of going about your daily life without having to worry about the economic impact of medical emergencies and its associated cost weighing down on your mind. Given its economic cost benefits, take the decision to protect yourself and your family from the financial impact of diseases and medical emergencies buy purchasing a comprehensive health policy today.