The cost of medical expenses is high and increasing. A health insurance provides protection against expenses arising due to unexpected medical emergency and ensures that the insured does not have to dip into his savings, break investments or borrow to fund the cost. Health insurance is thus also a very cost effective way to protect one’s finances.
While there is no straight formula to calculate the sum assured for a health policy. There are however certain factors to be considered before deciding the amount.
Buying health insurance at a young age has its own advantages.
The three important riders one could opt along with basic health insurance plans are.
Waiting period is the number of days a policyholder has to wait before he could avail the benefits of the policy.
Waiting periods include:
Reasons for rejection of health insurance claim.
All is not lost if the claim is rejected, provided you are able to convince the insurance company that the claim made by you is genuine.
Before buying a health insurance policy it is very important you read the prospectus carefully to understand the diseases or medical procedures not covered by the policy.
Generally a health insurance policy does not cover:
A 15 days grace period is provided to renew the policy after the expiry date. The policy will lapse if the policy is not renewed within the grace period. No cover will be provided during the grace period till the time premium is paid.
Any number of claims are allowed during the policy year unless there is a specific cap mentioned in the policy.
Portability was introduced by IRDA in 2011. In the past in health insurance policies, when the policyholder changed health insurance policy from one insurance company to another, this resulted in losing benefits like ‘waiting period’ for covering pre-existing diseases. With portability, the new insurer i.e. the new insurance company “shall allow for credit gained by the policyholder for pre-existing conditions in terms of waiting period”.
For example, Ravi had taken health insurance policy from company ‘A’. The waiting period for pre-existing disease in the policy was 4 years. After completing 3 years with the policy, Ravi decided to shift to another new health insurance policy with company ‘B’ due to an increase in premium. The waiting period for pre-existing disease with new policy with the company ‘B’ was also 4 years. Prior to 2011 before portability, if Ravi had shifted the policy the waiting period of 4 years with the new policy would have become applicable to him. After introduction of portability the waiting period for pre-existing disease with the new policy will be only 1 year. So, due to portability he did not lose the waiting period benefit.
The are few important points to know before you decide to port your health insurance policy.
Any amount above the ported sum insured will be treated as a new policy.
The following documents will be required regarding your existing policy.
Drawbacks of Family floater policy
We love our families and want to do the best for them. The decisions we make and the actions we take have the needs and the interest of the family at its core. One of the best decisions you can take for your family is to invest in a health insurance policy.