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How to utilize health insurance policy in the best ways?

Over the past few years, the health insurance industry has experienced many noticeable changes. These changes include insurance guidelines, premium costs, policy benefits, coverage, and so on. The changes may distress policyholders who own various health insurance policies from the period before the guidelines were changed or refurbished. Policyholders can’t simply make their payments and receive the policy documents, they must be aware of all the changes and modifications of the policy plan. There are several things that a policyholder should consider to utilize their health insurance plans optimally.

8 best ways to Utilize Health Insurance Plans in India

Let’s take a look at how to utilize health insurance in the best possible ways as mentioned below:-

  1. Purchase a health insurance policy as early as possible
  2. The individual health insurance or a family floater plan
  3. Inform your family about your health insurance policy
  4. Enjoy the tax benefits against your policy
  5. Be transparent about your health conditions and history
  6. Get the no claim bonus
  7. Invest in top-up cover plans
  8. Add a new member and enhance your sum insured

8 Best ways to utilize Health Insurance Plans in India

1. Purchase a health insurance policy as early as possible

Your health insurance premiums depend on your age and thus, don’t waste your precious time to find out the cheapest policy in the market. Rather, purchase a comprehensive health insurance plan like LIC health insurance coverage when you are in good health. When you are young and healthy, you may find many options and the premium would be lower too. Always factor in your requirements and income and compare various plans online before selecting the best one that resonates with all your healthcare requirements and budget. The industry experts reiterate the need to make this evaluation and influence customers to make an informed decision early in their life.

2. The individual health insurance or a family floater plan

Once you have decided to buy a health insurance plan, you may get confused regarding what type of policy you should purchase (an individual health insurance plan or a family floater health insurance policy). Both indemnity plans have some advantages and disadvantages.

Those who are bachelor and free of family responsibilities may purchase an individual health insurance plan when they start earning. An individual health insurance policy offers coverage to a single person only. An individual policy offers you adequate coverage and benefits that will help you to combat various diseases.

When a person is married and planning to start a family, eventually, new members will be added to the family.  In this scenario, a person should purchase a family floater plan so that every family member gets adequate coverage. In this stage of life, switching to a floater policy will be beneficial for you rather than keeping the individual policy. The premium amount for a floater policy is more affordable as compared to individual health plans. Thus, if you have a family of four or more, consider a floater policy.

The health insurance industry experts often recommend that if you have senior parents, don’t include them under your family floater policy. You must purchase a separate senior citizen policy that will give adequate coverage to your older parents. Older people frequently need to visit hospitals and doctors for their health conditions; so, a senior health policy could be the best choice in this context.

3. Inform your family about your health insurance policy

Don’t forget to inform your family members about your health insurance policy. Every family member should be aware of the policy details, terms and conditions, exclusion and inclusion, empanelled hospitals, policy benefits, and so on. Always keep the policy documents in a place so that every member can access them easily. If they don’t have the proper information, then they may not utilize the policy at the time of need. Inadequate knowledge of their health insurance policy may cause undue stress.

4. Enjoy the tax benefits against your policy

Health insurance policies offer financial support to policyholders. At the time of hospitalization, an insured policyholder can get the best treatment without stretching his finances. Health insurance plans also offer tax exemptions to policyholders. You are eligible for tax exemption for all your paid health insurance premiums under section 80D of the income tax act. So, check with your insurance company or agent to get clarity on the rules for tax exemption.

5. Be transparent about your health conditions and history

While purchasing a health insurance policy, don’t hide any health conditions from your insurer. Always provide the exact details and conditions for all family members for whom the health insurance policy is being purchased. If you provide incorrect information or mislead your insurer, then you may face some serious consequences. The insurance company can even reject your claim. To enjoy the benefits of your policy and utilize your policy in the best possible way, always share all the information with the insurance provider.

6. Get the no claim bonus

No claim bonus is a cumulative bonus that is offered by insurance companies every year. For every no-claim year, you are eligible for this type of bonus. Utilizing your bonus in the best possible way, you may get a discount/rebate on your premium amount or the insurer may enhance your sum insured value without increasing your premiums.

7. Invest in top-up cover plans

If your chosen sum insured amount is inadequate for your healthcare needs, then, you can go for top-up cover plans. In these types of plans, you increase your health cover easily and at a small premium rather than spending a hefty amount on purchasing a new health insurance policy.

8. Add a new member and enhance your sum insured

Once you add a member under your family floater plan, your premium will increase. So, plan accordingly as you need to consider healthcare inflation also. Also, evaluate your policy coverage at the time of renewal and top it up if required.

Health insurance plans have many features which might prove to be heaven-sent at the time of medical emergency. To enjoy the maximum benefits, you need to plan meticulously. Use the aforementioned tips to utilize your health policy optimally. These days, companies are also using health insurance analytics use cases and are inspiring customers to purchase various health insurance plans to strengthen their protection against diseases.

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