Understanding Medical Insurance Policies: What Every Family Should Know in 2024
With global health challenges on the rise, ensuring the family's well being takes precedence. One crucial aspect is having access to high-quality healthcare that doesn't deplete your savings. Insurers like ACKO offer health insurance that is essential for everyone regardless of their income or health. Let's explore the critical aspects of health insurance that every family should know:
Key Health Insurance Terms to Understand
Knowing the jargon and insurance terminologies will help you make better-informed decisions while choosing a medical insurance policy for your family:
- Sum Insured – The maximum amount your insurer will pay towards your medical expenses in a policy year.
- Premium – The periodic payment you must pay your insurer to maintain health coverage.
- Deductible – The out-of-pocket amount you must pay for medical expenses before insurance coverage kicks in.
- Co-Pay - A fixed amount you agree to pay for each medical service when you claim insurance.
- Network – A group of hospitals and doctors contracted with the insurer to offer healthcare services at discounted rates.
- Waiting period – The period for which you have to wait before the insurance kicks in to offer the coverage.
Common Types of Medical Insurance Plans
Now that you understand the basic terms let's dive into the different types of insurance policies that you can purchase:
- Individual health insurance – This type of health insurance covers a single person. The entire sum insured is available for your own healthcare needs. Even if your employer offers a group insurance plan, consider investing in individual health insurance for assured protection.
- Family floater plan – Multiple family members can be covered under a single family floater plan. Regardless of their age, you can expand protection to all your family members. From newborn babies to senior citizens, you can include all your dependents with a family floater plan. Here, the sum insured is shared by everyone covered by the policy.
- Senior Citizen policy – Specifically designed for the elderly, this plan also provides comprehensive coverage and coverage for a wide variety of illnesses. After the waiting period, PEDs are covered. Senior citizen health insurance often comes with higher deductions and co-payment options to keep the premiums affordable. According to the latest IRDAI amendments, insurers cannot deny insurance because the applicant is old. Therefore, even if you don't have insurance, now is the right time to buy it.
Tips to Choose the Most Suitable Policy
With various insurance plans available, choosing one that fits your budget can be challenging. Here are some tips you must know to make the right choice:
- Buy as per your needs – Assess individual and family's medical needs before choosing a health insurance policy. While different types of covers exist, you probably won't need all of them. If someone in your family has specific healthcare needs, purchasing individual health insurance instead of family insurance is better.
- Balance coverage and cost – Comprehensive coverage is desirable but expensive. Adding more covers to your policy increases your premium. A balance between adequate coverage and affordability is optimal. You can always expand the coverage with add-on riders later.
- Explore network providers – Cashless claims can be helpful only when you can quickly get treatments from hospitals within the network. The quality and accessibility of these networks reduce complexity during the claiming process.
- Understand policy exclusions – Every insurance policy has specific exclusions. Some exclusions like cosmetic treatments, dental procedures, deliberate injuries, and congenital diseases are standard across insurance providers. Ensure that you understand these before buying insurance.
Takeaway
Learning the key concepts and proper research will help you choose the right medical insurance plan. It ensures financial protection for the whole family in case of unexpected medical emergencies. Several policies are customised for different types of individuals so that you can choose one that best fits you.
Ready to protect your family's health? Explore comprehensive medical insurance policy options from ACKO.
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