Health insurance: Five questions you must ask before buying a policy

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Buying health insurance is no more a choice, but a necessity, especially in times of a raging pandemic. Covid-19 and the escalating cost of treatment have made health insurance indispensable. We have prepared a list of questions you should ask your agent before zeroing in on a right policy:

1) What does the policy cover?

There are different types of health insurance policies in the market ranging from comprehensive health policy, critical illness to diseases specific plan. Your first question to your agent should be what it covers so that you know in advance situations where you can fall back on it.

2) Is there a waiting period?

There is generally a waiting period of two to four for pre-existing illnesses in a health insurance policy. In order to make sure the policy covers pre-existing illnesses, it is important that you declare them at the time of buying a policy.

3) Is there a co-payment clause?

Copayment is the percentage of the cost which you need to pay from your pocket in case of a claim. At the time of discharging one of the biggest surprises for many is when they are asked to pay a co-payment clause. With many not prepared to pay as high as 20% of the hospital bill they will be cheated, Hence make sure your policy doesn’t have a co-payment if you don’t want to share a part of the bill from your own pocket.

4) What are the exclusions?

It is always good to be aware of exclusions beforehand so that there are no last-minute surprises. For example, a basic health insurance policy does not offer coverage during the initial period of 60 to 90 days from the date of buying the policy.

5) Is there any sub-limit?

There are many plans that come with a cap on room rent. It is generally 1% of the sum insured. But the fact is at the time of hospitalisation you go for the best available facility and do not try to fit in the category your health insurance policy allows. It is therefore advisable to opt for a health plan without a cap on room rates.