How to compare health insurance policies?

Shraddha Shitut

21 Jul 2017

What is health insurance?

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider.

Importance of buying health insurance

As medical care advances and treatments increase, health care costs also increase. The purpose of health insurance is to help you pay for care. It protects you and your family financially in the event of an unexpected serious illness or injury that could be very expensive. In addition, you are more likely to get routine and preventive care if you have health insurance.

You need health insurance because you cannot predict what your medical bills will be. In some years, your costs may be low. In other years, you may have very high medical expenses. If you have health insurance, you will have peace of mind in knowing that you are protected from most of these costs. You should not wait until you or a family member becomes seriously ill to try to purchase health insurance. Here are some suggestions for you to choose best health insurance plans.

Best health insurance plans in India

Sr. No. Insurer name Plan name USP of the product
1 Cigna TTK Pro health Plus Plan
  • OPD - Rs. 2,000/-
  • Maternity cover - 4 years waiting period
  • Pre existing disease waiting period - 3 years
  • Free health check up
2 Star Health Comprehensive Plan
  • Eye cover & Dental cover
  • Maternity cover - 3 years waiting period
  • Air ambulance
3 Apollo Munich Optima Restore
  • No capping on room rent
  • Daily cash allowance
  • Pre existing disease - 3 years waiting period
4 Star health Diabetic Safe Policy
  • Exclusively for Diabetic patient
  • OPD covered
  • Dialysis expenses covered only in complications related to Diabetes
5 Star health Senior Citizen - Red Carpet
  • Exclusively for Senior Citizen
  • No pre medical screening
6 ICICI Lombard Complete Health Insurance
  • Online Doctor Chat
  • Daily cash + Convalescence benefit
  • Specialist Consultation
7 Max Bhupa Heart beat Plan
  • Covers up to 13 relationships under single one policy
  • Maternity benefit - 2 years waiting period
  • OPD benefit - Platinum Plan
8 Religare Health Care
  • Free health check up every year
  • Organ donor expenses covered
9 Oriental Insurance Happy Family Floater
  • No pre medical screening up to 60 years of age
  • Mid term inclusion of member (for newly wed spouse)
  • Daily cash allowance (Gold plan)
10 Star health Medi classic
  • Non allopathic treatment covered
  • 200% restoration covered
  • No pre medical screening before 50 years of age

The medical costs are constantly on the rise, and so are various diseases and illnesses. All of this stresses the importance of purchasing a health insurance policy that will benefit the individual and his family. But do you compare the policies before purchasing the health insurance? Comparing policies helps you to understand and compare between different companies in terms of features, price, claim settlement ratio, sum insured.

Things to remember while purchasing health insurance policy

  • Room Rent capping and sub limits: Insurance Company provides capping on room rent. It depends upon company to company what will be the limit.

  • Networking hospitals: To avail cashless facility, an insured person has to get hospitalized in networking hospital. Networking hospitals are those hospitals where your insurance company has a tie up with the hospital.

  • Coverage: Coverage is nothing but sum insured.

  • Loading charges on premium: If you are suffering from any pre existing disease and undergoing through pre medical test, loading charges might apply depending upon the type of disease.

  • Add on riders: Insurance company provides you add on benefits or riders like Critical Illness, Reduce Waiting period for Maternity, etc. To avail these riders you need to pay extra charge.

  • Claim settlement ratio: One of the important parameter a person has to look after while purchasing health insurance policy is settlement ratio.

  • Eligibility: For every health insurance policy, a person has to look for eligibility. Every company has Minimum and Maximum Entry Age for purchasing a new policy.

  • Offers and Discounts: There are some companies who provides discounts if you are opting policy for more than a year.

  • Exclusions: Exclusions are of 2 types. Temporary and Permanent exclusion. Temporary Exclusion means there are certain list of diseases if occurred after purchasing the policy one has to serve 2 years waiting period and there are certain list of diseases if occurred before purchasing the policy one has to serve 4 years waiting period which will depend on company to company. Permanent exclusion means there are certain diseases which can never be covered by insurance company.

  • Free health check up: While purchasing health insurance policy, you need to check if the company is providing free health check up. If yes, then is the company providing on claim free year basis or every year.

  • Claim settlement process: You need to understand the claim process first, before you buy health insurance policy. How to avail cashless facility? How to reimburse? What is the process for the same? Everything to need to understand before purchasing the policy.

  • No Claim Bonus: If you do not claim for the entire policy period, company provides you an additional bonus in terms of percentage with maximum limit. Bonus depends upon company to company.

  • Restoration: : If your basic sum insured exhausts because of any hospitalization then the company restores the entire basic sum insured back to your policy for different diseases, that too with no extra cost and no additional paper work.


Similar articles

  • Responses
  • Patidar Samaj

    - 2 hrs ago

    This article claims RJio was given a "Backdoor Entry" into the 4G Based Voice Routing. The peculiar aspect is without the Voice License, Rjio would have been a mere ISP. With the license, it is now a holistic communications service provider, with ability to exponentially scale the bouquet of products. The events indicate it was meticulously planned way before the auctions because the auctions were clear on the agenda: 4G for internet only.

Load More
mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


Banner

How to compare health insurance policies?

Shraddha Shitut

21 Jul 2017

What is health insurance?

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider.

Importance of buying health insurance

As medical care advances and treatments increase, health care costs also increase. The purpose of health insurance is to help you pay for care. It protects you and your family financially in the event of an unexpected serious illness or injury that could be very expensive. In addition, you are more likely to get routine and preventive care if you have health insurance.

You need health insurance because you cannot predict what your medical bills will be. In some years, your costs may be low. In other years, you may have very high medical expenses. If you have health insurance, you will have peace of mind in knowing that you are protected from most of these costs. You should not wait until you or a family member becomes seriously ill to try to purchase health insurance. Here are some suggestions for you to choose best health insurance plans.

Best health insurance plans in India

Sr. No. Insurer name Plan name USP of the product
1 Cigna TTK Pro health Plus Plan
  • OPD - Rs. 2,000/-
  • Maternity cover - 4 years waiting period
  • Pre existing disease waiting period - 3 years
  • Free health check up
2 Star Health Comprehensive Plan
  • Eye cover & Dental cover
  • Maternity cover - 3 years waiting period
  • Air ambulance
3 Apollo Munich Optima Restore
  • No capping on room rent
  • Daily cash allowance
  • Pre existing disease - 3 years waiting period
4 Star health Diabetic Safe Policy
  • Exclusively for Diabetic patient
  • OPD covered
  • Dialysis expenses covered only in complications related to Diabetes
5 Star health Senior Citizen - Red Carpet
  • Exclusively for Senior Citizen
  • No pre medical screening
6 ICICI Lombard Complete Health Insurance
  • Online Doctor Chat
  • Daily cash + Convalescence benefit
  • Specialist Consultation
7 Max Bhupa Heart beat Plan
  • Covers up to 13 relationships under single one policy
  • Maternity benefit - 2 years waiting period
  • OPD benefit - Platinum Plan
8 Religare Health Care
  • Free health check up every year
  • Organ donor expenses covered
9 Oriental Insurance Happy Family Floater
  • No pre medical screening up to 60 years of age
  • Mid term inclusion of member (for newly wed spouse)
  • Daily cash allowance (Gold plan)
10 Star health Medi classic
  • Non allopathic treatment covered
  • 200% restoration covered
  • No pre medical screening before 50 years of age

The medical costs are constantly on the rise, and so are various diseases and illnesses. All of this stresses the importance of purchasing a health insurance policy that will benefit the individual and his family. But do you compare the policies before purchasing the health insurance? Comparing policies helps you to understand and compare between different companies in terms of features, price, claim settlement ratio, sum insured.

Things to remember while purchasing health insurance policy

  • Room Rent capping and sub limits: Insurance Company provides capping on room rent. It depends upon company to company what will be the limit.

  • Networking hospitals: To avail cashless facility, an insured person has to get hospitalized in networking hospital. Networking hospitals are those hospitals where your insurance company has a tie up with the hospital.

  • Coverage: Coverage is nothing but sum insured.

  • Loading charges on premium: If you are suffering from any pre existing disease and undergoing through pre medical test, loading charges might apply depending upon the type of disease.

  • Add on riders: Insurance company provides you add on benefits or riders like Critical Illness, Reduce Waiting period for Maternity, etc. To avail these riders you need to pay extra charge.

  • Claim settlement ratio: One of the important parameter a person has to look after while purchasing health insurance policy is settlement ratio.

  • Eligibility: For every health insurance policy, a person has to look for eligibility. Every company has Minimum and Maximum Entry Age for purchasing a new policy.

  • Offers and Discounts: There are some companies who provides discounts if you are opting policy for more than a year.

  • Exclusions: Exclusions are of 2 types. Temporary and Permanent exclusion. Temporary Exclusion means there are certain list of diseases if occurred after purchasing the policy one has to serve 2 years waiting period and there are certain list of diseases if occurred before purchasing the policy one has to serve 4 years waiting period which will depend on company to company. Permanent exclusion means there are certain diseases which can never be covered by insurance company.

  • Free health check up: While purchasing health insurance policy, you need to check if the company is providing free health check up. If yes, then is the company providing on claim free year basis or every year.

  • Claim settlement process: You need to understand the claim process first, before you buy health insurance policy. How to avail cashless facility? How to reimburse? What is the process for the same? Everything to need to understand before purchasing the policy.

  • No Claim Bonus: If you do not claim for the entire policy period, company provides you an additional bonus in terms of percentage with maximum limit. Bonus depends upon company to company.

  • Restoration: : If your basic sum insured exhausts because of any hospitalization then the company restores the entire basic sum insured back to your policy for different diseases, that too with no extra cost and no additional paper work.