By Jitender Kumar Saini
The objective of purchasing Health insurance is to cover your medical expenses in case of hospitalization. Health insurance not only guarantees to cover current medical bills but also covers pre and post hospitalization bills as applicable. Online health insurance quotes is available to both the individuals as well as groups insurance policies. In an individual plan you are the owner of the plan and pay the premium personally. Whereas in group insurance, the plan is purchased by the employer or the organization as applicable and the employer is the owner of the policy. The health insurance premiums for group plans are always cheaper than that of the individual insurance policies.
The premiums rates for health insurance does not differ much however evaluations are mainly done on the basis of medical history and lifestyle of the consumer. Consumers of health insurance in India can often control several factors which determine the insurance premium. Some of these factors under insurance coverage are described in the following paragraphs.
Deductibles – Deductibles are the amount you have to pay out-of-pocket to cover the expenses before reimbursement of your expenses kicks in from the insurance coverage. It is usually a flat amount and is optional for the consumer. Keep in mind that the higher the deductible, the lower will be the premium. But if you are a frequent visitor to the hospital it is advisable to go for a lower deductible. Or else on the long run these small amounts you pay as deductibles might pile up to a big amount.
Co-payments and co-insurance – In this kind of insurance option the risk is divided between the parties, the insurer and the insured. The parties will agree on certain percentage to pay out expenses, for example in a 70/30 plan, the insurance company pays 70% of the covered expenses and you will pay the remaining 30% out of your pocket. Normally plans with co-pay have maximum out of pocket costs.
Lifetime maximums – It is the total amount of benefits the policy will pay out for the entire time you are covered. Once the maximum is achieved, your plan will cease to cover any of your health expenses further. The higher the maximums, there is more potential for coverage under the insurance coverage and vice versa.
Annual or out-of-pocket limit – The out-of-pocket limit is the maximum amount you pay on eligible expenses, including the deductible and coinsurance in a year. After the out-of-pocket limit has reached its maximum, the plan will start paying 100% of the additional expenses. Thus the lower the annual limit, the higher will be the premium and vice versa.
Coordination of Benefits – Many insurance companies offer insurance plans which recognize the fact that other insurance may be available to you, such as coverage under worker’s compensation, automobile insurance, or coverage available as an employee benefit to a spouse. The provision specifies how multiple covers will coordinate their payments.
Renewability or Cancellation of the policy – Some insurance companies offer health insurance on a guaranteed renewable basis or with a non-cancellation provision meaning that the insurance company will cancel the coverage only in the event of non-payment of premium. There will be an added cost for these features.
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