How to select Best Health Insurance

Now a days, medical expenditure has incremented to such a large extend that health insurance has become a necessity and an essential expense for the well being of our family. 

Types of mediclaim policies
Mainly there are two options available:  

1. Floater policy:
Here we take the policy for the entire family. Usually family means Husband, Wife and Kids. That means parents are not included in floated policies. The sum assured can be utilized by any member of the family. Here usually the maximum sum assured in a year is Rs 10 lakh.

2. Individual policy:
Here each member may take individual medical insurance. Special discounts are given if individual policies are taken for the entire family. Here parents are also included in the definition of the family. Usually the maximum sum assured in a year is Rs 10 lakh for each individual.



Usually Individual policies are more expensive than the Floater policies. If your is an young family which means when parents are young, its better to take floater policy. When the elder member in the family crosses the age of 60, these policies will expire. Floater policy have the advantage that when even one member can utilize all the amount. But that can turn to be a disadvantage that the no claim bonus and other benefits will be lost if any member do a claim on a particular year.

Most corporate employees used to have a Group mediclaim policies. But this may create issues while changing the company or after retirement. So financial experts always advice a separate individual mediclaim policies along with company mediclaim policies. Hence depending on the need, one should a suitable option.

Medical checkups and illness covered
Most health insurance schemes do not have any medical check-ups for individuals upto the age of 45. So try to take a mediclaim policy when you are young.

Regarding pre-existing disease, most companies will cover after a period of 3 to 4 years. Usually the dental and illnesses relating to pregnancy are not covered by majority of the health insurance policies, but still most company group policies do cover maternity expenses. It is always advisable to go through the policy document to learn what diseases are exempted from the policy. Most companies give their policy documents on their websites.

Role of an advisor.
What is equally important while taking a health insurance policy is having a good advisor. Like other insurance policies, medical insurance requires good amount of policy servicing, especially while making a claim. But as the commission for mediclaim policies towards the agents are very less for public sector companies, its very difficult to find a good agent. We need to learn things through the hard path.

Once you apply for the mediclaim you will be provide with a receipt. Usually the TPA [ Third Party Administrators ], will mail a medicard to you address with in 30 - 60 days. Its better to call the TPA after 30 days if the medicard is not available at your address. 

Cashless Claim facility: 
Most insurance companies used to provide cashless mediclaim facilities. In this case the individual can get the treatment done in selected hospitals mentioned in the policy document without making any direct payment. Then the insurance company will directly settle the medical bills, subjected to the terms and conditions as per the medical insurance policy. Even though there is sufficient paper work involved in the process, it helps in times of urgent need to know that such facilities exist and can be called upon.


Income tax benefits:
Medical Insurance premium paid upto Rs 15,000 for himself and his spouse and dependent children can help to save tax under Sec 80D of the Income Tax Act. Also as per section 80D of the Act, another deduction can be claimed to medical insurance premium paid up to Rs 15,000 for dependent parents. The deduction can even increased up to Rs 20,000 in case the premium is paid for senior citizen ( more than 65 years ).

Summary

We all know the importance of life insurance, but haven't given that much importance to medical insurance. Make a decision, to take a good health insurance as it is very important to insure you and your family members from the rising future medical expenses. 

Hence  whatever might be our salary, age, status of health, please don't neglect the medical insurance for you and your family members.