Simple Ways to Plan for Your Health Insurance

A surge in healthcare expenses might affect your finances. Pre & post hospitalisation expenses may cause a huge dent to your bank account. This is where health insurance benefits step in. Armed with the best health insurance, you can protect your hard-earned money from the grasp of massive hospital bills. 

 

Health insurance, unlike a term plan, doesn’t have a set payment period; thus, the health insurance premiums can be considered a lifetime commitment. So while making your annual budget, you should keep your annual health insurance expense in mind.

 

If you have health insurance, the premium would account for a sizeable chunk of your budget. Preparing for your health insurance premium payment is vital not only to keep your health insurance benefits, but also because coverage may be expensive (depending on the plan you choose) and you must set aside money for it.

 

Calculate your insurance premium

Every health insurance provider's website has a premium calculator. This calculator calculates the amount you may be required to pay if you purchase health insurance online. This will assist you in making more informed financial decisions.

 

Go for an affordable coverage

Higher coverage equates to higher premiums. Thus, it is better to select a health plan that meets your needs. Additionally, you should only choose a plan that you can afford. You don't want your budget to suffer simply because you have to pay a health insurance premium. Therefore, choose a health plan that suits your healthcare & budget expectations appropriately.

 

Keep an eye on the premium date

If you fail to pay by the due date, your policy enters a grace period. If you pay within this time-frame, the policy will remain active with all the benefits you have accrued to date. However, the claims will be put on hold for the next few days. If you still fail to pay, your policy will be terminated. You can note your renewal due-date on your calendar or set a phone reminder for it. Also, many health insurance companies contact the policyholder before the renewal due-date.

 

Monthly Premiums

In an attempt to even things out, the IRDAI (Insurance Regulatory Development Authority of India) now permits health insurance providers in India to collect policy premiums in equal monthly instalments (EMI). Previously, consumers had to pay a one-time premium every year.

 

According to the IRDAI's Annual Report for FY-2014-15, about 1,09,00,000 health insurance policies were issued in the general insurance business. These policies are expected to cover 28.80 crore people. The report also revealed that government programmes and group insurance policies covered numerous people,

 

The basic aim behind this IRDAI decision is: making health insurance easily available for people who previously couldn't afford to pay lump sums to get medical coverage. Other possibilities include paying premiums on a monthly, quarterly, or half-yearly basis, as well as the currently used annual payment plan. 

 

While monthly premiums are enticing, there are some facts you should know:

 

Things to Note About Health Insurance EMI Payments

 

• This mode of payment is just available for plans with a value more than a fixed amount insured.
• Your premium amount will be 5% more if you pay monthly rather than annually.
• The premium for the preceding three months will be subtracted from the total of your claim if you file it in September.

 

According to industry analysts, EMI gives insurance seekers more flexibility in terms of larger insurance coverage. People who need individual insurance might consider investing in a family floater policy because the investment can be spread out over a longer period of time.

 

Setbacks to Monthly Installments

 

Everything has its pros and cons – while the list here is small, but definitely worth noting:

 

• Not only for health insurance, but for any purchase, even if it's merely purchasing a mobile phone on EMI, instalments usually raise the product's true cost. In such cases, the policyholder must pay an extra 3 to 5% of the total insured value, which is a large amount. The quarterly premium rates will increase by about 3%, whereas the monthly premiums will increase by about 5%.

 

If you choose EMI, you must obtain insurance with a policy period of at least 2 to 3 years.

 

You cannot file a claim for health insurance until you have paid a year's premiums. However, this is not the fact with annual premiums.

 

Read Niva Bupa health insurance plans. Hope you choose the best health insurance plan suited for your needs!