Health Insurance Plans

Health insurance is a type of insurance whereby the insurance company reimburses the policyholder in case he/she falls ill and has to be hospitalised or undergo any other type of treatment. Some health insurance plans also pay out a predetermined amount in case of injury or disease which are called fixed benefit health plans. Insurance companies have tie-ups with a wide range of hospitals and the insurance amount is directly transferred to the hospital in case of a health insurance claim is filed. If the insurer does not have a tie-up with a certain hospital, the cost of treatment is reimbursed to the policyholder. The government promotes health insurance through tax deductions, as it is an important tool for maintaining public health.

1.Changing lifestyle:

There is no denying the fact that our ancestors had a healthier lifestyle. Daily lifestyle has undergone a drastic change in the last few decades, giving rise to a plethora of new diseases. A sedentary lifestyle, bad eating habits and dangerous levels of pollution have made the current generation more prone to health risks.

2.Rising medical costs:

Various reports and surveys have highlighted two key findings, which could be a reason to worry for people without health insurance. The cost of healthcare is rising faster than other services and products and Indians primarily dip into their savings to take care of medical emergencies. Therefore, the chances of exhausting your entire savings in case of a medical emergency cannot be ruled out.

3.Coverage of related costs:

When you opt for a treatment, hospitalisation is just a part of the overall costs. Out-patient expenses, diagnostic tests and other related activities account for a substantial part of the overall expenses. The cost of related activities is also rising with the cost of hospitalisation. Health insurance covers pre and post-hospitalisation charges along with the cost of hospitalisation.

1.Age

The age of an individual is the single biggest factor that determines his/her chances of falling ill. The chances of requiring medical assistance increase significantly with age. Younger people are generally healthy and medical costs are low. Therefore, your age plays a vital role in determining the amount of premium you will have to pay for a health insurance plan. It is always advisable to buy health insurance when you are young rather than waiting for the later years of life.

2.Medical History

There are several diseases, which have a higher chance of occurrence if you have a family history of the disease. Insurers charge a higher premium from people who have a family history of certain diseases such as cancer, blood pressure and heart diseases.

3.Body Mass Index

The body mass index is a measurement of an individual’s weight with respect to his/her height. A higher BMI signals towards a relatively unhealthy lifestyle and a higher chance of diseases related to heart, joint and also diseases such as diabetes. People with a higher BMI are more likely to seek frequent medical assistance, which increases the risk for the insurer and hence the premium for the policyholder.

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4.Habits

The insurance premiums will be higher for you if you are a daily smoker or consume alcohol on a frequent basis. Insurance companies charge higher premiums for smokers and drinkers to mitigate the risk associated with insuring people who smoke regularly. Regular smokers are more likely to contract diseases such as lung cancer, stroke, heart disease, asthma and respiratory complications.

5.Pre-existing health conditions

The health insurance premiums for people with pre-existing health issues is higher as the chances of a repeat are high. The insurer covers you against any repeat occurrence of a pre-existing condition.

6.Profession

Even though it may not seem to be an important factor for health insurance, but your profession matters while buying a policy. Your occupation plays a key role in your overall well-being. Occupational dangers are higher for people working in hazardous industries such as mining, which results in higher insurance premiums for them.

• Claim Process

  The claim process is an important factor for all insurance products as no one wants to run from pillar to post when the need arises. You should choose a health insurance plan with a simple and fast claim process. A helpful customer support system would be an additional advantage.

• The insurance amount

  The amount of cover is one of the most critical components of a health insurance plan as an inadequate amount will not be of much help. While choosing the insurance amount, take into consideration your age and history of diseases.. You should also keep in mind your income while choosing the premiums. Essentially, you should try to strike a balance between the insurance amount and the premiums.

• Family health insurance

  The health of your family members is as important as yours while taking a health insurance plan. Take into account the existing ailments and the age of your family members while choosing a health insurance plan.

• Pre/post hospitalisation

  There are several costs related to hospitalisation. Ideally, one should choose medical insurance that covers pre and post hospitalisation charges. The pre and post hospitalisation expenses include the cost of consultation and diagnostic tests.