The need for health insurance has multiplied rapidly in the last few years. With an exponential rise in critical illnesses and a devastating pandemic wave, people have started to look at health insurance in a new light. Considered by many as a mere formality in the past, this insurance cover has saved lives, made lives better, and ensured that the burden of hospital bills does not bog you down.
The renewed importance of health insurance has made people conscious about their choices of health insurance. Along with awareness, come expectations and this often confuses.
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With the rise of so many insurers offering extensive coverages, you have to be wise to choose the right type of health insurance policy. Choose a type of insurance policy that depends on factors like age and medical condition. Under the umbrella of Health insurance, two main distinctions are explained below with its usages and benefits.
Here is a clear distinction between individual & family health insurance:
|Individual Health Insurance||Family Health Insurance|
|Individual health insurance is when only one person is covered under every policy. The health insurance sum insured is dedicated to one person.||A family health insurance is a type of health insurance plan wherein you and your family members share one plan. This means the sum insured would be shared by all members covered under this policy,|
|Extensive coverage is provided since every individual has their sum insured. This is better for an individual with advanced age who may need more medical attention.||Premiums are cost-effective, as the premium is a one-time premium for all family members.|
|The disadvantage of individual health insurance is that you will have to pay a much higher premium to cover all the family members individually if you plan to get your family insured.||One of the main disadvantages of a family floater plan is that the sum insured may not be enough for all family members.|
|Individual health insurance is recommended for bigger families or those with senior parents.||A family health insurance would work well for a young couple or a nuclear family.|
This is the ratio that determines the percentage of claims that have been settled by the insurer in a year. The higher this ratio is the better it is as it increases the credibility of the insurer. A health claim settlement ratio above 85% is generally considered very good and anywhere between 80% to 85% is considered acceptable.
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Health insurance should be bought after careful consideration. This insurance comes in handy in a crisis and if you realize you’ve bought the wrong product at that time, it would be too late.
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The reputation of the insurer helps to identify past customers and check for reviews. A well-known brand will have better customer service and customer-centric processes. Most reputed insurers offer 24 hours support and they are easier to get in touch with if there is an issue. A reputed insurance company translates to tie-ups with better hospitals and personal attention by the company agent.
One of the vital points of a health insurance policy is the aspect of hospitalization. Whether it is the network of hospitals that the insurance company has a tie-up with or the availability of these hospitals throughout the country. Another essential thing to consider while checking the premise of hospitalization is if cashless hospitalization is available and the terms and conditions under which it will be honored. Pre-hospitalization and post-hospitalization should also be checked to ensure you are fully aware of the benefits.
Once you have settled on the policy, purchase it as soon as possible because it is now the best time to buy health insurance!
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