IndiaInsurance
27th December 2010, 06:45 AM
Which health cover suits you
Medical insurance
Benefit: Covers expenses incurred during hospitalisation, including doctors’ fee, room rent, cost of medicines etc.
Suitable for: Everybody. A must-have even if you have group insurance.
Hospital cash
Benefit: Lump sum amount paid in case of hospitalisation to cover miscellaneous expenses. Amount depends on duration.
Suitable for: People who may lose pay if they are hospitalised or attend to a patient.
Personal accident
Benefit: Covers death, disability or hospitalisation following an accident. Full sum paid out in case of death. Part payments in other cases.
Suitable for: Low cost cover that everyone must have.
Health riders
Benefit : Riders can cover major surgeries or 7-8 critical diseases. Lump sum payment is made.
Suitable for: The first rider becomes more relevant as you grow old and the possibility of surgery increases.
Top-up covers
Benefit : Low-cost way to enhance the existing health cover. Kicks in only if the expenses exceed the specified limit.
Suitable for: Useful if you have group insurance but feel it is inadequate.
Life insurance health plans
Benefit: These plans offered by life insurance companies cover hospitalisation as well as OPD expenses. Premium remains constant for 10-15 policy years.
Suitable for: Useful if you want cover for minor ailments.
What if you have group insurance?
Your own cover
People covered: You can buy a health insurance policy for yourself and each member of the family or take a floater plan that covers the entire family. Some floater policies also cover extended families. People up to 55-70 years are covered. Premiums are fully tax deductible under Section 80D.
What is covered: The cover is renewable every year. Hospitalisation expenses, including doctor charges, room charges, nursing charges and prescribed medicines are covered. Some policies cover expenses up to 30 days prior and 30-90 days post hospitalisation. Minimum duration of hospitalisation is 24-48 hours.
Waiting period: Claim for illnesses are not accepted within 90-120 days of taking the policy, but injuries dues to accidents are covered. Existing diseases are covered after four years. Some diseases, such as cataract and hernia are covered after two years of continuing with the policy.
Exclusions: Expenses for pregnancy and complications emerging out of it, diseases from birth, external medical aid, hospitalisation after a war or nuclear attack or abuse of alcohol, HIV or Aidsrelated, dental treatments, cosmetic treatments are not covered. Expenses such as laundry charge or private nurse, taxes and processing charges are also excluded.
Extra charges: Loading - Insurance companies increase the premium for a person or a family in case many claims have been made under the policy and the premium is not sufficient to pay for the claims made. This percentage of increase is called loading.
After retirement: There are policies for senior citizens that provide cover up to 85 years (if you start policy from maximum 69 years) at a higher premium.
More... (http://economictimes.indiatimes.com/personal-finance/insurance/analysis/health-insurance-your-decision-making-guide/articleshow/7167605.cms)
Medical insurance
Benefit: Covers expenses incurred during hospitalisation, including doctors’ fee, room rent, cost of medicines etc.
Suitable for: Everybody. A must-have even if you have group insurance.
Hospital cash
Benefit: Lump sum amount paid in case of hospitalisation to cover miscellaneous expenses. Amount depends on duration.
Suitable for: People who may lose pay if they are hospitalised or attend to a patient.
Personal accident
Benefit: Covers death, disability or hospitalisation following an accident. Full sum paid out in case of death. Part payments in other cases.
Suitable for: Low cost cover that everyone must have.
Health riders
Benefit : Riders can cover major surgeries or 7-8 critical diseases. Lump sum payment is made.
Suitable for: The first rider becomes more relevant as you grow old and the possibility of surgery increases.
Top-up covers
Benefit : Low-cost way to enhance the existing health cover. Kicks in only if the expenses exceed the specified limit.
Suitable for: Useful if you have group insurance but feel it is inadequate.
Life insurance health plans
Benefit: These plans offered by life insurance companies cover hospitalisation as well as OPD expenses. Premium remains constant for 10-15 policy years.
Suitable for: Useful if you want cover for minor ailments.
What if you have group insurance?
Your own cover
People covered: You can buy a health insurance policy for yourself and each member of the family or take a floater plan that covers the entire family. Some floater policies also cover extended families. People up to 55-70 years are covered. Premiums are fully tax deductible under Section 80D.
What is covered: The cover is renewable every year. Hospitalisation expenses, including doctor charges, room charges, nursing charges and prescribed medicines are covered. Some policies cover expenses up to 30 days prior and 30-90 days post hospitalisation. Minimum duration of hospitalisation is 24-48 hours.
Waiting period: Claim for illnesses are not accepted within 90-120 days of taking the policy, but injuries dues to accidents are covered. Existing diseases are covered after four years. Some diseases, such as cataract and hernia are covered after two years of continuing with the policy.
Exclusions: Expenses for pregnancy and complications emerging out of it, diseases from birth, external medical aid, hospitalisation after a war or nuclear attack or abuse of alcohol, HIV or Aidsrelated, dental treatments, cosmetic treatments are not covered. Expenses such as laundry charge or private nurse, taxes and processing charges are also excluded.
Extra charges: Loading - Insurance companies increase the premium for a person or a family in case many claims have been made under the policy and the premium is not sufficient to pay for the claims made. This percentage of increase is called loading.
After retirement: There are policies for senior citizens that provide cover up to 85 years (if you start policy from maximum 69 years) at a higher premium.
More... (http://economictimes.indiatimes.com/personal-finance/insurance/analysis/health-insurance-your-decision-making-guide/articleshow/7167605.cms)