What is Health Insurance and How to Choose Best Health Insurance
Plan?
Health
Insurance or medical insurance or affordable health insurance or individual
health insurance or group health insurance or business health insurance is a
contract between the insurance company and policyholder.
Here as per the contract the insurance provider gives/offers various medical benefits to the insurer as per the specified contractual sum insured levels like room rent, defined Hospitalization expenses, air and normal ambulance charges, all medical tests like X-ray, Sonography, various laboratory tests, medical bills, cashless benefits, Third Party Assurance, etc.
Health Insurance companies are
providing mainly two types of costs compensation which Pre & Post
Hospitalizations.
Important Points to Remember While Choosing the Best Health
Insurance Plan in India
1. Claim Settlement Ratio: Means the total number of claims settled by the insurance company to the total number of claims received in the same duration of time.
Tip of
Experts explains that a High CSR shows that the company is very likely to
settle a claim without any hassles with their clients.
2. Network Hospitals: an
insurer should have a good number of hospitals in its network in each city,
which cater to various classes of people. Network hospitals must cover nursing homes, day-care treatments, and multiple disease expertise medical hospitals.
3. Waiting Period for
Pre-existing Illnesses: A longer waiting period for pre-existing
illnesses can mean that you cannot make a claim for hospitalization, even
though you are paying the premium.
Tip of
Experts explains that 2 years are the waiting period for pre-existing illness
to be covered whereas some insurers specify this waiting period to be up to 4
years long.
4.
Premium Derived Values:
Of
course all insurance providers are charging different premiums for the values
they are offering, but Premium Derived Values defines the value that the
insurers are getting from the premiums they are willing to pay.
Let’s Understand the Need of Health Insurance by taking example of one of the Developed Country – United States of America
Around 70% of aged people in United States supports the individual health savings
accounts to support them against medical emergencies for their old aged days,
new research says.
The
research findings also suggests that most of the citizens want to buy health
insurance before the age of 60.
Without
Mediclaim it will not be easy.
Most
of the older citizens are about to face miserable problems once they enter in
their 60s. They are often facing problems
with severe health issues, stagnant income, rising health costs,etc.
According
to the researchers, more than 50 percent of working person or having working
spouse would not have health insurance benefits after retirement. Researchers
also found that more than 10 million old aged people are not insured or have
history of improper health insurance.
More
than 20 percent people above fifty years are found that they have not visited
doctors or hospitals, or regular medical check ups or continue their medical
treatments due to the heavy medical cost. More than 34 percent are found
problems in settling their medicine bills in the last few years or still paying
medicine debts.
Some Enlightenment & important key factors:
If Developed countries are facing these
massive Health Insurance problems than India & other developing countries
must blow whistle for need of Health Insurance, defining ways to reach end
level, reduced cost of premium of insurance,etc.
In today's competitive business world most of the earning person are ignoring the need of Health Insurance & facing severe financial crisis after their 60s.
