Healthcare is no longer a choice, it’s a necessity. We all are at risk of many diseases even if we live a healthy lifestyle. However, the most expensive medical care can be very costly. If you’re not prepared financially, you could end up in deep financial trouble.
A medical reserve and your life savings are great resources. Your life savings and medical reserve are the result of hard-earned cash and should be used to fund other areas.
What is the solution? If you want financial protection against illnesses and diseases, it’s easy to buy online health insurance.
What is Health Insurance?
The insurance company is legally bound to provide financial protection against financial consequences of medical expenses. The health insurance company promises to pay hospitalization costs and medical costs for the insured, whether you purchase online or offline.
There is no one-time fee when you purchase health insurance online or offline. The premium paid to the insurance company is used to purchase a health insurance policy. In exchange, the insured receives additional financial benefits in the form of insurance coverage.
Factors to consider before you buy online health insurance
You can’t buy insurance online like any other product. You need to consider many factors and points to make sure you are making a safe investment when purchasing health insurance online.
These are the key factors to remember before purchasing online health insurance.
- Policy inclusions
When you buy Mediclaim online, most policies cover hospitalization expenses (pre-hospitalization + post-hospitalization) and additional expenses such as ambulance charges, daycare expenses, to name a few. These expenses are covered by different insurance companies. This means that not all insurance companies will cover these additional expenses. Before you purchase online health insurance, it is important to understand the details of your policy.
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- Sub-Limits & Co-Payment Clause
Many potential buyers don’t know about the sub-limits or co-payments clauses when purchasing online health insurance. The sub-limit clause places a limit on the amount of claims that can be made. Simply put, your policy coverage must be INR 50 lakh. Your sub-limit clause should be 50%. This means that you can’t claim more than INR25 lakhs in one time.
Alternately, a copayment clause divides the insurance company’s payment percentage between the insured and the insurer. An example is that an insurer would pay 90% of the hospital bill while the insured would pay 10%. This is just one example. It varies from insurer to insurer.
These clauses limit the amount an insured can claim against a policy of health insurance. These clauses stop policyholders exhausting their health insurance policies.
- Waiting Period
A waiting period is the period during which a policyholder can’t file a claim. A waiting period is usually required at the beginning of a policy, or for pre-existing conditions. It is best to avoid purchasing mediclaim online that has a longer waiting time.
- Make sure you are familiar with all terms and conditions of the policy
Many health insurance companies promise promises they can’t keep. Instead of listening to the spoken word, you should read the written word whenever you purchase mediclaim online. Read the policy document carefully. You must ensure that the policy document contains all information you have read on the website or received from the insurer.
When comparing online health insurance policies?
Comparing multiple policies online is key to purchasing online health insurance. The question is, however, what parameters should you use? These are the key points to consider when comparing online health insurance policies:
- The Insurer’s Claim Settlement Ratio
As a general rule, you should always verify the claim settlement ratio for any insurer. It is a good idea to compare multiple policies and choose an insurer that has a high claim settlement rate. You could lose your investment if you choose to do otherwise.
Many potential buyers don’t know about the sub-limits or co-payments clauses when purchasing online health insurance. The sub-limit clause places a limit on the amount of claims that can be made. Simply put, your sub-limit clause will limit your claim limit to 50% of your policy coverage. This means that you can’t claim more than INR25 lakhs in one time.
Alternately, a copayment clause divides the insurance company’s payment percentage between the insured and the insurer. An example is that an insurer would pay 90% of the hospital bill while the insured would pay 10%. This is just one example. It varies from insurer to insurer.
These clauses limit the amount an insured can claim against a policy of health insurance. These clauses stop policyholders exhausting their health insurance policies.
- Waiting Period
A waiting period is the time frame during which a policyholder can’t file a claim. A waiting period is usually required at the beginning of a policy, or for pre-existing conditions. It is best to avoid purchasing mediclaim online that has a longer waiting time.
- Make sure you are familiar with all terms and conditions of the policy
Many health insurance companies promise promises they can’t keep. Instead of listening to the spoken word, you should read the written word whenever you purchase mediclaim online. Read the policy document carefully. You must ensure that the policy document contains all information you have read on the website or received from the insurer.
When comparing online health insurance policies?
Comparing multiple policies online is key to purchasing online health insurance. The question is, however, what parameters should you use? These are the key points to consider when comparing online health insurance policies:
- The Insurer’s Claim Settlement Ratio
As a general rule, you should always verify the claim settlement ratio for any insurer. It is a good idea to compare multiple policies and choose an insurer that has a high claim settlement rate. You could lose your investment if you choose to do otherwise.
An insurer’s claim settlement ratio indicates how capable they are at settling claims. If you adhere to the terms and conditions, a high claim settlement rate would increase your chances of your claim being settled.
- Review and complaints
You should always check reviews before you purchase anything online. It’s important to review reviews before purchasing health insurance online. A provider of health insurance with numerous complaints would be a bad choice. To protect your investment, it’s better not to deal with them.
- Financial well-being of the insurer
You don’t want to choose an insurer with a poor financial history. Before an insurer can settle your claims, they must be financially sound. You should take a look at the solvency and cash flow of your insurers. These ratios are indicative of the financial capability of the insurers.