These days, most people have a Netflix account. But before you start binge-watching your favourite movies and TV shows, you need to choose a subscription plan. For instance, the base plan (cheaper plan) offers lower streaming quality and fewer benefits. The premium plan offers better streaming quality and many more perks. Now, which plan would you choose?
When it comes to buying something, there is always a trade-off between cost and benefits. Lower the cost, fewer the benefits and higher the cost, greater the benefits. But where should you draw the line between the two?
You can find a similar scenario when it comes to health insurance. So, what should you choose: cheaper premium or a comprehensive cover? To answer this question, there are a few factors you need to consider.
Understand your requirements
There is no single answer for the best health insurance plan. Everyone has different needs and there are many factors you need to consider when you take a health insurance plan. How many children do you have? Are you planning to provide health coverage for your aged parents? Questions like these can help you understand your medical insurance requirements. Remember, when it comes to health insurance, you need to consider your family members as well.
Coverage for illnesses
Ideally, your health insurance policy should cover a large number of illnesses. When you go to the hospital billing counter, you don’t want to find out that you have to pay for the expenses from your own pocket since your insurance claim was rejected. Critical illnesses and accidents can be very serious. In addition, they can be very expensive to treat. For this reason, it is always better to have a critical illness cover or an accidental cover in your policy.
The reimbursements you get on your medical claims are subject to the terms and conditions of your policy. A higher sum assured means that you can benefit from larger coverage against medical expenses.
For example, imagine your medical treatment costs you around Rs 10 lakh but your policy offers coverage only for Rs 5 lakh. This means that you have to pay the remaining amount from your own pocket. On the other hand, if you have a higher sum assured, you can get better financial coverage.
Personal medical history
Every family has its own history of medical illnesses. This could be due to hereditary conditions that affect members of a particular family. Diabetes, for example, is a hereditary disease. In such cases, it is always better to have additional coverage against such issues. This way, you can find out how much coverage your family needs and you can protect them through a good medical cover.
How much is too much?
These days, there are a lot of different medical insurance covers available. This includes add-ons and riders too. Maternity cover, critical illness cover, accident cover and room rent waivers are a few examples. But how many riders should you incorporate in your medical cover? Greater the coverage, higher your costs.
It is very important to have a comprehensive health cover to take care of your medical expenses. But at the same time, if you add all the available covers without discretion, you may end up paying a large amount of money towards your health insurance. As a rule of thumb, your life insurance cover should be equal to 8-10 times the annual CTC of your salary.
Take note of the above points and understand your medical requirements so that you can get the best health insurance possible that fits in your budget.