Medical bills rising faster than inflation:
According to the survey by global consultancy firm, this has also sent the cost of health insurance cover surging. Worse, the situation is not going to get better any time soon.
While the government of India has vowed to bring overall inflation below six per cent soon, Medicare costs are expected to outstrip price inflation well through the medium term as well.
Healthcare costs to rise 8 percent year on year:
The cost of healthcare services is expected to rise around 8 percent year on year, more than three times the projected rates for inflation and economic growth, the growth rate of 8 percent for overall healthcare costs contrasts with expectations for growth of 2.4 % in gross domestic product and a 2.0 % rise in consumer prices.
Upward pressure on healthcare costs comes in part from a rebounding economy and the growth of new medical technologies, including robotic surgery and the nuclear medicine imaging technique known as positron emission tomography.
Right health insurance can be a saving grace
Medical inflation is a cause of concern for each one of us today. India lags behind its global counterparts in offering a state sponsored health insurance system to a large section of the population.
As a result, it has one of the highest out-of-pocket spends at 61 per cent, putting a lot of stress on family budgets in case of a medical treatment.
Before you zero in on a policy, you need to be clear about your requirements as well as your existing medical history and your family’s. Having zeroed in on a policy, it is very critical to thoroughly understand the same including the caveats.
The following factors will help you choose a health insurance policy in line with your needs:
Adequate sum insured:
It is essential to take sufficient cover which protects you and your entire family. It is important to choose the right amount of sum insured depending on the past medical history of the elderly family members as they would require higher health insurance coverage.
Similarly, the location where you reside should be taken into consideration. A person staying in a tier I city would require a higher sum insured compared to a person who lives in a small town since the hospitalization costs are higher in metros.
Cashless med claim:
Most health insurers provide cashless facility to insured individuals. It is necessary to check the list of network hospitals that are offered to the policy holder.
Cashless facility offers convenience to the insured as it avoids the hassle of making payments and then claiming reimbursement. Some of the companies have their own claims processing unit which makes direct payment to the customers.
It is essential to understand the maximum acceptable age limit offered by the health insurance company. The possibility of falling sick is much higher at an older age. Hence, it is important that one is covered by a comprehensive health insurance plan even after retirement.
Also, you should choose a policy that can be renewed after the age of 65 because at an older age it is difficult to purchase a new insurance policy.
Value added services:
Most of the health insurance plans in the market offer features that are competitive. An emerging aspect is the additional value-add perks offered along with the policy.
Health insurance firms now offer various additional value add services like free health check-up, online chat with doctors, dietician and nutrition e-consultation, physiotherapy, speech and audiologist consultation.
Opting for these value-added services can result in a substantial saving for the insured individual. In addition to the haves in a policy, you need to know the have-nots as well to avoid negative surprises later.
Given below are a few factors which are typically not under the covered expenses.
Some plans have a limit on certain services. For e.g. ten doctor’s visits per year, in this case, the policy holder will have to pay full cost of any visits above that limit as they would not be considered as part of covered expenses.
Co-pay and sub limits:
Few Insurance companies have introduced the co-pay and sub-limits wherein the insured individual agrees to share some of the expenses incurred. In this case, the insured benefits from a lower premium amount compared to a regular policy with no sub-limits.
It is essential that you conduct a thorough research and make an informed choice while choosing a comprehensive policy. Preventive care helps and it prolongs the need for insurance but it is wise to keep ones family protected with a good health insurance cover.
Choose a policy that can be renewed after the age of 69 because at an older age it is difficult to purchase a new insurance policy
Some Insurers have introduced co-pay and sub-limits wherein the insured individual agrees to share some of the expenses incurred. In this case, the insured benefits from a lower premium amount, the location where you reside should be taken into consideration. A person staying in a tier I city would require a higher sum insured than someone from a tier II city.
Good Multispecialty hospitals may be few and far between, so it is necessary to check the list of network hospitals that are offered to the policy holder.
Health plan serves as an excellent tool to protect your Health and also for your beloved Family.
The Health Insurance aims to protect and assure your Wealth portfolio under the Growth and Aspiration bucket would aim to provide the “thrust” to the Growth.
As a part of our continuous Endeavour to find products which would address various aspects of a client portfolio, Fincare Capital have been associated with leading Health/ General Insurance companies to offer a wide range of Health / Medical Insurance + guaranteed renewal products for whole life, which would form a part of your Protection Bucket.