Buying health insurance plans for individuals should be everyone’s priority. However, it can be a daunting task for many, especially if they are first-time buyers. There are certain factors they need to keep in mind when making a purchase decision.
Here is a step-by-step guide to help simplify the process of buying health insurance plans for individuals. Read on to know more.
Analyze Your Requirements
When you are planning to buy a health insurance plan for yourself, you need to first understand your requirements. For example, do you need it to pay for your pre-existing medical conditions, to avail of maternity benefits, etc.? Once you have identified your needs, it is time to look for a policy that suits your needs the most.
Determine The Right Coverage Amount
The coverage amount should be at least six times your monthly take-home salary. For example, if you earn Rs. 50,000 a month, your insurance coverage amount should be at least Rs. 3,00,000. At the same time, you must also keep your needs in mind when calculating this amount. While this amount will be sufficient if you are buying health insurance plans for individuals, it may not be enough to cover your family’s medical needs. So, remember to keep these points in mind.
Understand the Policy Inclusions
Once you have identified your priorities and the coverage amount, it is important to look at certain factors in deciding which policy to buy. Some of them are listed below:
When a person needs to stay in a hospital for more than 24-hours, it is known as inpatient hospitalization. Almost all health insurance plans for individuals provide full coverage for inpatient hospitalization. Therefore, you must look for a plan that provides you with adequate coverage.
Some patients may require treatments like dialysis, chemotherapy, etc., that does not require full-day hospitalization. When looking for health insurance plans for individuals, look for a plan that covers these treatments.
Room Rent Allowance
Some health policies will only pay a certain amount for your room rent. Therefore, it is better to look for a plan that does not put a cap on room rent and offers full allowance.
Pre and Post Hospitalization
Your medical expenses are not just limited to hospitalization. There are a lot of things you need to pay for before and after your hospitalization. In most cases, the health insurance plans for individuals will cover 30 days for pre-hospitalization and up to 90 days for post-hospitalization. Educate yourself about the fine print before investing in a policy.
Know About the Policy Conditions
When you buy health insurance plans for individuals, your policy will come with certain conditions, such as waiting period, inclusions, exclusions, etc. You need to learn about these conditions before making an investment. Let us discuss some of them individually:
- Waiting Period: This is the period when you are not allowed to make claims for your health insurance. This waiting period varies based on policy clauses and the types of illnesses you have at the time of buying the insurance plan.
- Co-Payment Clause: According to this clause, the insurance company will pay a part of your medical expenses, and you need to pay the remaining from your pocket. The ratio of this may vary from insurer to insurer and policy to policy. In most cases, if your policy comes with a lower waiting period, it most likely has a co-payment clause. Be sure to check that.
- Sub-Limit: Some health insurance plans for individuals come with caps on certain illnesses, procedures, and facilities. These caps are known as sub-limits. For instance, there may be a cap on room rent allowance. Learn about these sub-limits when comparing health policies online.
- Exclusions: When a health insurance plan does not cover certain illnesses or procedures, it is an exclusion. Read the policy document to know about these exclusions.
Don’t make the mistake of buying the policy by simply looking at the premium amount or coverage amount. You need to keep all the above-mentioned factors in mind before making an investment decision. At the end of the day, the health insurance plans for individuals you eventually buy should fulfill all your requirements.