8 things to keep in mind before investing in a Health Insurance Plan

In the era of corporate super specialty hospitals and sky rocketing medical bills, a tailor made suitable medical insurance or health insurance plan is one of the first things you should think about. Insuring your health no longer remains an optional precaution, but it has now become one the most basic steps for a sound financial health in future. Actually, it is also crucial to have the optimum health plan insurance as an integral part of your overall retirement plan. 

Selecting the right health insurance plan, out of the numerous available options, is like a paramount decision. Undoubtedly, it is also a complex, technical decision, which requires lots of insightful understanding that is duly supported by factual knowledge and subject matter expertise. However, there are specialist financial advisors like Principal Retirement Advisors, who are duly equipped to analyse, understand and suggest you the best fit health plan insurance integrating with the overall holistic retirement plan in focus.

Despite of having all the essential guidance, it is also important for you to do some basic homework and know more about the available plans in the market. Here’s a concise checklist of 8 key features that can help you make a sound judgment while deciding to go for the right plan.

1. Your PREMIUMS: No doubt this is a critical parameter but it surely is not the only one. In case of health plan insurance, the cheapest premium may not always be the best fit always. A plan with salient features that meet all your lifestyle based, unique, personal needs is actually the right choice.

2. HOSPITAL NETWORK: You need to consider the exhaustive list of hospitals which are directly connected with your health insurance company. And quite obviously, your choice must be the company which is affiliated with a large network. This can ensure that in case of a claim, you will avail cashless facility, saving you from the hassles of first settling the bill and then claiming your reimbursements. 

3. PRE-EXISTING DISEASES: In case you have some pre-existing diseases which are already there when you sign up for your health plan insurance, they might not be covered from day one and might also come with a long waiting period. So you must ideally opt for the plan which covers your pre-existing diseases or at least the one with the minimum waiting period.

 

4. INDIVIDUAL COVER OR FAMILY FLOATER: A family floater is usually the logical choice, but if one or more members of your family are above 50 years of age, it’s always better to opt for their individual policy over and above family floaters.

5. SUB-LIMIT FOR ROOM RENT: There are upper limits for hospital room rents generally in the range of 1% to 2% of total sum ensured. This again is one of the key components of the hospital bills. You should always be sure that you prefer the health claims with no limits or at least, comparatively higher limits on the hospital rents.

6. CO-PAYMENTS: Numerous health insurance policies demand cost-sharing from policy holders or sharing a portion of the overall admissible claim amount. Ideally, you should avoid such policies though they may seem cheap or cost effective at first sight.

7. PRE & POST HOSPITALISATON EXPENSE: Pre-hospitalization expenses are those incurred before hospitalization. These expenses are generally covered for 30 days before admission. Post-hospitalization expenses are the ones incurred after you are discharged from the hospital. They are generally coved for 60 days. You should always go for the one which covers you for maximum days, on both sides.

8. EXCLUSIONS: This is also vital as policies have clear exclusion clause, whereby they exclude certain illnesses or conditions. Make sure that you go for the one with the shortest list.

 

Selecting the right health Insurance plan requires lots of deliberations that need to be well understood in totality before taking a plunge. Ideally you should always opt for a certified financial advisor in order find the best investment fit.