Health insurance is considered a strong security cover in financial planning. Its importance has increased even more due to the ever-increasing treatment costs.
But in recent times, one concern is that the health insurance premium is constantly increasing.
Due to this, it is becoming difficult for many people to renew the policy.
In the case of senior citizens, the increase in premium is being seen even more.
In many cases in the last one year, health insurance premiums have increased by more than 15 percent. In the case of senior citizens, it is even more.
Due to such complaints of increase in premium, insurance regulator IRDAI had to issue a directive in January this year that health insurance companies should not increase the premium of policy holders of 60 years or above by more than 10 percent annually.
The biggest argument given by insurance companies for increasing the premium of health insurance is the rising inflation in the medical sector.
They say that in the last few years, there has been a rapid increase in the cost of hospitals, prices of medicines and the cost of diagnostic tests.
Due to this, insurance companies have to spend more money for claims, which affects the prices of premiums. Apart from this, health risk also increases with age and this also affects the premium rates.
This means that the deterioration of the claim ratio is one of the biggest reasons for the premium becoming expensive. Insurance companies claim that more claims are coming than the premium they are collecting.
When the amount of claims exceeds the premium, companies have to increase the premium to meet their expenses.
However, experts say that by adopting some special methods, the premium can be kept low to a great extent.
Buy a policy at a young age – The younger and healthier you are, the lower the premium, so it is better to buy a policy at a young age.
The impact of rising premiums can be reduced by choosing a family floater plan.
Some experts believe that young children should be included in the family floater, and it is better to buy individual policies for elderly parents.
Apart from this, top-up plans are also a great way to reduce premiums. If you are thinking of buying a base policy of Rs 1 crore, then instead choose a base policy of Rs 10 lakh and a top-up plan of Rs 90 lakh.
This method is not only cheaper, but also gives you a bigger cover. Top-up plans are especially beneficial for those who want more coverage at a lower premium.
If you choose a long-term policy, you can save a lot on premiums. This means that instead of paying one year’s premium, insurance companies offer attractive discounts on paying three-four years’ premium in lump sum.
Apart from this, choosing treatment in network hospitals can reduce the insurance premium. Many insurance companies offer discounts on premiums if the CIBIL score is good.
Along with this, renew the policy on time, there is a penalty in case of delay and coverage may also lapse.
The biggest benefit is that in case of any illness or medical emergency, your savings are saved.
The second big benefit is cashless treatment. This means that in case of health cover, you do not have to pay money from your pocket and the insurance company bears the expenses.
Most standard policies have a feature in the hospital – Hospital Network, where you get cashless treatment.
Apart from hospitalization, many other benefits are also available, such as maternity benefit. In some policies, day care facility is also available.
Another benefit is tax benefit. If you are in the old tax regime, then you get tax benefit under section 80D.
Now let’s talk about those things in the policy on which special attention should be paid.
First of all, you should see in which policy the facility of cashless treatment is available in the hospitals near you.
Secondly, whether pre and post hospitalization charges are being covered in the policy or not.
Usually, in a standard policy, pre-hospitalization is for 30 to 60 days, while post-hospitalization expenses of 60 to 180 days are covered.
You should check whether there is any kind of limit on the coverage. For example, the maternity benefit in a policy may have a limit of only Rs 50,000 and if the treatment you are undergoing is costly, then this should be kept in mind.
Some policies also have a co-pay option, which means you will also have to pay some money in the medical bill.. Check the co-pay clause carefully.
Read carefully the terms and conditions of pre-existing disease and waiting period in the policy, because these are the two terms that are most frequently mentioned in claim rejections.
Insurance regulator IRDAI says that any disease that has been treated 48 months before buying the policy will be considered a pre-existing disease. So whenever you buy a policy, mention it clearly to the company. That is, the disease should not be hidden but disclosed.
And now talking about the waiting period, in a standard policy it can usually be 2 to 4 years.
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