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  3. 10 things you should check before buying/renewing your health policy

10 things you should check before buying/renewing your health policy

Health Insurance

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Your Health Policy needs a reality check when you renew next time as it could have some aspects, which you have been ignoring all this while. Policies bought through your old agent, online for it is the cheapest in the market and through an offering by any institute would certainly have shortcomings, which could shock you in a situation of any eventuality. Please check below some of your policy's critical features before renewing this time, as you might be a frog in the well who knows nothing of the ocean. 

Below are the 10 points need to be borne before you decide to renew your policy next.

  1. Room Rent: - An important aspect that needs verification immediately as policies bought over the last decade has a restriction linked to Sum Assured (SA) and it can prove to be dear to you if you have a low SA.

  2. Cumulative Bonus: - Many policies, including old ones, add a cumulative Bonus of 5-10% of SA per year, whereas the new policies add 50% of Sum insured, up to a maximum of 150% subject to claim free years.

  3. Restore Benefit: - Another important feature that is not available in the old policies and most of the policies issued by PSU companies. The part restores the SA if the Sum Assured and the cumulative Bonus get exhausted during the treatment.

  4. Maternity Cover: - The coverage essential for young couples where expenses up to Rs.35, 000 in case of birth of normal delivery and Rs.50, 000 in caesarean is available after waiting 24 months.

  5. Pre and Post-hospitalization expenses: - Old policies have coverage for 30-60 days for pre and post-hospitalization, whereas it is available for 60-180 days in the new policies. The feature comes in handy, especially when the expense of pre and post-hospitalization is many times more than hospitalization expenses.

  6. Health Check-up: - The old policies give Benefits once in 4 years, and the new policies pay for expenses for complimentary preventive health check-ups up to 1% of Sum insured, max. Up to Rs.10, 000 every year irrespective of claims.

  7. OPD Treatment including Dental: - Covered up to Rs.5000-10000 per policy year, after a waiting period of 24 months.

  8. Accidental Death Benefit: - Payment up to 100% of Sum insured if the insured meets with an accident resulting in death.

  9. Consumables Benefit: - The expenses incurred on items consumed by the insured during hospitalization and related to the insured's treatment. The Benefit has come in highlight especially during the pandemic as many found that their policies did not cover the hefty amount of consumables during the treatment.

  10. Global Cover: - It Covers the Medical expenses of the Insured Person incurred outside India, up to the Sum insured provided that the disease was diagnosed in India and the insured travels abroad for treatment. Very few policies offer such coverages, as it is expensive and viable only when one buys a policy with higher SA.

We have listed above only a few essential features to understand before buying or renewing the policy. It is hard to believe that one could be lenient with health policy, vital for your financial planning. IRDA allows portability of the health policy as we do with our Motor Policies and it is advisable to do the same while you are hale and hearty. It would be sensible to re-examine your policy today and seek guidance from an expert who can help you to with the right solution with your Health Plan.