When it comes to inflation there is very little control that a normal person has on it. Things can get a bit more difficult when it comes to the healthcare industry. It is a wide known fact that medical inflation is in double digits in India. What this means for you, is that a procedure’s price would have increased by a significant margin since the last price that you were aware of.
The most natural and obvious defence mechanism is to start saving more for such uncertainties. But there is enough evidence to prove that such planning is far from being perfect. No matter how much money a person saves, it would take only one or two medical procedures to deplete a major chunk of the entire savings. Is there an alternative to the same? Yes, there is. Health insurance plans are designed specifically for such instances.
Health insurance plans or medical insurance plans cover the general medical expenses or surgical expenses of an individual or a family for that matter. But before you start investing in any health plan, you should be aware of its different categories. Here are some of them.
- Critical Illness Plans
As the name suggests, this specific category of health insurance plan that caters to critical illness; illness or medical conditions that have high severity by nature and come with a lower occurrence frequency. Critical illness is usually a bit expensive to diagnose and treat as well. If you opt for this plan, the insurer will pay a lump sum amount on the diagnosis of the illness. The pay-out is usually as per the policy documents and can be used for treatment.
- Hospitalisation Plans
This is a more traditional health plan. The sole purpose of such health insurance plans is to provide financial assistance to the policy holder or their family members. If the people covered under the plan undergo any medical treatment or surgeries, the plan comes into the picture. Should the treatment take place in a network hospital, you can avail cashless service. If not, you can pay for the procedure and reimburse the same.
- Daily Benefit Plans
This is a very specific type of health insurance plan. This policy pays out a certain amount of money to the policy holder on a daily basis during the hospitalisation. The payment is regardless of the actual expenses that a policy holder incurs. For an instance, if the policy says a payment of INR 2000 a day and the actual expenditure is INR 3000, the policy holder will receive INR 2000. Similarly, even if the actual expenditure is INR 1000, the insured shall receive INR 2000.
Covers of Health Insurance Plans
Health insurance plans are no different from a standard insurance plan. There are some standard features and benefits and then there are some insurer specific ones. Here is a list of some of the most common coverage items of health insurance plans.
- In Patient
There are various expenses when you are hospitalised. Right from the room rent to nurse’s fees to doctor’s consultation to medicines and so-on. A health plan usually covers all of these expenses, while there can be a cap on the room rent.
- Pre and Post Hospitalisation
Medical treatment doesn’t start and end with a hospital room. A lot of procedures require some pre-hospitalisation treatment, which in turn means some expenses related to it. The same is the case with post-hospitalisation treatment as well. A health plan usually covers expenses up to 60 days for pre and 90 days for post hospitalisation expenses.
- Day Care Hospitalisation
Day by day we witness some advancement or the other in the medical field. Such advancements at times help reduce the treatment duration or procedure. Health insurance plans cover such medical procedures which do not require for the patient to be admitted to a hospital for more than 24 hours, which is a norm.
- Domiciliary Treatment
Good health insurance plans offer coverage for domiciliary treatment as well. This means, that you can claim for any treatment that you receive at home.
Renewal Process in Health Insurance Plans
Renewal of health insurance plans is pretty much like any other insurance policy. You must renew a policy before it expires or at the maximum during its grace period. You can either renew a plan from an insurer’s website or reach out to a local branch office or agent to do the same. The simpler method would be to compare it on Coverfox.com and then either choose to renew the same plan or upgrade or port the same to a different plan or insurer, etc. depending on the cost-benefit and coverage analysis. However, if you are happy with a policy, you must simply renew the same to get continued benefits.