Wealth Guide: 5 things you need to know before purchasing health insurance - Tips from expert

Health has become a priority for people especially since the onset of the pandemic. It has raised awareness around health & well-being; besides, it has underlined the importance of health insurance. The recent past highlighted that despite all precautions, medical emergencies and accidents are sometimes unavoidable. A comprehensive and adequate health insurance cover enables people in getting back on their feet as soon as possible and avoid financial crisis during health emergencies. 

Awareness about insurance has most certainly seen a rise but there’s still a long way to go in terms of insurance penetration. While we all recognize the significance of maintaining good health, need for quality medical treatments for all and it is also important to understand the role health insurance plays in making quality healthcare and treatment accessible. For those purchasing health insurance for the first time, Shreeraj Deshpande, Head – Health Businesses, SBI General Insurance, has few tips:-

1

Insured Sum: 

"Sum insured is the maximum admissible amount one can be reimbursed for medical expenses under the policy. Hence, deciding an appropriate amount to cover high medical bills becomes important. While deciding a cover, one should assess and analyze health risks and take their place of residence into consideration before choosing the right sum insured," Shreeraj Deshpande said.

2

Waiting Period: 

"Health Insurance policies have waiting periods for pre-existing conditions, certain listed illnesses / conditions and products are priced accordingly. Products with higher waiting periods would be cheaper than products with shorter waiting periods. Ideally products with shorter waiting periods are preferable," Deshpande added.

3

List of Network Hospitals: 

"One of the key reasons for acquiring a health insurance plan is to be able to make cashless claims in the event of a medical emergency. The larger your insurance provider's network of hospitals, the larger the number options to avail quality treatment," he suggested.

4

Claims Settlement: 

"It is important to know the turnaround times and claims ratios of an insurer before choosing an insurer. It is necessary to make certain that the insurance company has a simple and fast claim settlement process," he explained.

5 

Brand: 

"It is important to insure oneself with a reputed and trusted brand," he advised.

"It is best to buy health insurance early in life and secure your finances during medical exigencies. One needs to choose a product with high sum insured, minimum waiting periods, minimum or nil sub limits and which is affordable to the insured. This World Health Day, be informed, evaluate your and family’s health risks and buy the right health insurance," he concluded.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)