Covid insurance: 5 things you should consider before buying

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Covid brought several significant changes and challenges. The demand for insurance, in particular, has picked up lately. Earlier, life insurance products that were only considered for saving tax are now becoming an indispensable safeguard against unforeseen scenarios. It is the risk of the unknown or unforeseen which “in utmost good faith” drives people to buy insurance cover to get protection from unknown afflictions in the future that may threaten their health.

The right health insurance shall enable you to provide yourself and your loved ones with a financial safety net in the event of unforeseen medical emergencies. It is, therefore, crucial to choose the right policy with the right benefits for you.

Here are five things you need to consider before buying health insurance:

Medical inflation in the years ahead

What may seem a health insurance bar now, say Rs 4 or Rs 8 lakh may become an inadequate amount a decade down the line. You need to factor in medical inflation, seeing how prices are today to what they might have been 20 years ago. For this reason, you should ideally opt for a combination of premium and sum insured. And with medical treatments advancing considerably, having a higher sum assured can ensure your every medical need is taken care of financially without any impact of medical inflation. By paying a relatively affordable health insurance premium each year or buying a top-up policy along with your existing cover, you can beat the burden of medical inflation while opting for quality treatment, without worrying about how much it will cost you.

Cashless claim availability

Usually, when one is seeking treatment for an ailment or is hospitalised with the aid of an insurance policy, that bill payment is handled directly between the insurance company and the hospital. However, the hospital of your choice may not always have a tie-up with the insurance policy you want. Therefore, you need to check which insurance policy has tie-ups with the greatest number of major hospitals across the city and in your immediate vicinity.

Treatments and value additions

It is always beneficial to choose a policy that does not have a co-payment scheme. You should also ensure that the limits on treatment have a decent cap-off, especially in the event of a major surgery where you might exceed the expected bill amount. Otherwise, the extra payment will be out of your pocket and that defeats the purpose of an insurance policy. Try to avoid it as best as you can, because in such a policy other than paying premiums and policy amount you will also mandatorily be required to pay a certain percentage of your medical bill, despite coverage.

Know your insurer

Look at the brand reputation, the claim settlement figures, and the customer service they offer. Make sure that they have a relatively high claim settlement range so that you will also be able to claim your coverage. In such a case, it could even be a good thing to go for a higher premium if you know it can be claimed when you need it most.

The right category

There are two categories when it comes to health insurance — an individual health policy and a family floater policy. A family floater, on the other hand, covers the entire family unit under a single plan. So, decide which kind of plan strikes the top of the priority list and opt for that one first. Keep in mind that an individual policy can be customised based on said individual’s pre-existing conditions and needs. These are, as the name suggests, for a single person, it can be for yourself or an individual family member.

(The writer is co-founder and CEO, InsuranceDekho. Views expressed are personal)