If you compare a health insurance plan from the 1990s to the ones available today, you will find at least a dozen new features that have been introduced lately. Moreover, the coverage provided is much more extensive in newer policies, keeping you protected against the financial losses that accompany medical emergencies. But the availability of so many plans and features can make the policy buying process confusing, making people skip important factors like health insurance claim settlement ratio.
Although the health insurance claim settlement ratio is an essential feature of health care policies that every policy buyer must consider, there are several other things to keep in mind that this guide will shed light on. Keep reading to see the list:
- Maximum Benefits
Gone are the days when health insurance was only about covering the costs of in-patient hospitalization, as today, you get comprehensive coverage even with affordable premiums. The benefits you can avail of include pre & post-hospitalization expenses, daycare procedures, domiciliary care, Covid-19 treatments, daily allowances, AYUSH treatments, and several other outpatient services.
- Income Tax Savings
When buying health insurance plans, make sure you select a policy offering good tax returns as it can help you save a few extra bucks. As per section 80D of the Income Tax Act of India, 1961, the premiums paid by policyholders towards health care plans are exempted from the annual income tax. So, be sure to check this feature as you can save up to Rs 50,000.
- Cashless Payments at Network Hospitals
Arranging last-minute funds for medical bills and expenses can be inconvenient, but you completely avoid doing so by choosing an insurance provider with a wide range of network hospitals. If you get admitted to or seek treatment in these hospitals, you won’t have to worry about settling the payment as your insurer takes care of it.
- Claim Settlement Ratio
As discussed earlier,the health insurance claim settlement ratio is a vital factor that most people often forget while buying health care plans. The health insurance claim settlement ratio indicates the number of claims an insurer settles against the number of claims received during the fiscal year. A health insurance claim settlement ratio of 85 percent and above is considered good, and it is imperative you check the same.
- Wait Periods
All health insurance plans come with a waiting period, which generally applies to pre-existing conditions and can be anywhere between 12 months to 48 months. However, some policies don’t include a waiting period, which should ideally be the choice for policy buyers. But if all the health care plans you prefer to have a waiting period, select the one with the shortest duration.
- Co-Payments
Like the health insurance claim settlement ratio, another key factor you should consider is the plan’s co-payment requirement. A co-payment is nothing but the share you pay when you file the claim, and it can either be a pre-decided amount or 10 to 30 percent of the total claim amount, depending on your insurer.
- Prolonged Renewability
While buying health insurance, it is best to opt for policies that offer the benefit of renewability for prolonged periods or even until the policyholder’s lifetime. This means that you can renew your plan for as long as you like, and it also eliminates the need to buy new policies every few years.
If you look at the Global Medical Trend Rates Report, you will find that even basic habits like poor stress management, physical inactivity, bad nutrition, and high cholesterol are quite high on the list of factors for health risks in most countries. On top of that, these health issues can have severe health consequences, including cardiovascular diseases, high blood pressure, and diabetes.
Therefore, it is crucial to invest in health insurance to safeguard yourself against the medical expenses that come with these conditions. However, policy buyers should only opt for well-known insurers like Care Health Insurance and keep the factors mentioned above, including the health insurance claim settlement ratio, in mind.
