‘Health is the greatest wealth’ is a common saying, but many fail to realize the true value of health until a disease or medical condition strikes. In such times, exorbitant medical expenses burn a hole in an individual’s pocket. Buying health insurance provides financial protection during such times of emergencies.
Conventionally, health insurance meant that you settle the medical bills and then reimburse the cash from your health insurance provider. However, the process is long and may strain your finances. Arranging cash at the last moment may be a problem as well. This is where cashless health insurance helps. A cashless health plan is the one where the insurance company directly settles the bills with the hospital. It saves the trouble of reimbursement process and does away with the need for emergency cash. As long as an individual is treated in a hospital of the insurer’s network, he does not have to pay at all.
Following are some foolproof tips on how you can chose the best plan:
Identify your healthcare needs
The first step in selecting the best plan is to identify your healthcare needs. Some cashless health insurance plans may not cover contingency. Draw a list of your requirements before deciding on a particular plan. If you are a frequent traveler, occurrence of a medical emergency can add to your woes. However, with a cashless insurance card in your wallet, your crisis can easily be solved.
Research various policies
It is always a good idea to do your homework before selecting the best suited policy. Check health insurance plans which have a large list of network hospitals, the benefits of each plan, etc. It is also a good idea to check whether the hospitals in your locality are covered in the insurance company’s cashless network of hospitals. You can compare policies of various insurance companies online. Check various alternatives, plan features and request online quotes. A little research today will go a long way in securing your health tomorrow.
Decide the type of plan
You can either opt for a family floater cashless insurance plan or an individual plan. This decision has to be made taking into consideration your family’s healthcare needs. In a family cashless insurance policy, a policy holder owns the policy and his family members covered under it are members. A sponsor can cover his entire family under one plan.
Opt for providers with larger network
In order to avail the benefits of cashless insurance, the policy holder has to be admitted in a hospital under the insurer’s network. Hence, choose those plans which have a larger number of network hospitals. Make sure the network hospitals are in close proximity to your residence.
Check for exclusions
Check your plan for exclusions. Plan exclusions are of two types: temporary and permanent.
- Temporary exclusions are those expenses which are not covered for a period defined by the insurance provider.
- Permanent exclusions are pre-defined expenses that the policy does not cover.
Some temporary exclusions include joint replacements, cataract laser surgery, dental procedure, hernia, dialysis for chronic renal failure, toiletries, ambulance charges, documentation expenses, etc. The list of exclusions varies from provider to provider. Hence, check for the complete list of exclusions before selecting the plan.
Given the disconcerting rise in health issues, accidents and medical conditions, health insurance has assumed importance like never before. Making the right choice between reimbursement plan and cashless plan is up to you. Investing in the right health insurance plan safeguards the insured from spending a huge amount to cover medical expenses. It saves the inconvenience of mortgaging assets and liquidating investments to fund medical expenses. Some plans provide tax benefits under section 80D under the Income Tax Act 1961. The limits are set at Rs. 25,000 for individuals and Rs. 30,000 for senior citizens.
Follow the above-mentioned tips and choose the best health insurance plan without any difficulty.
Know more and buy the right cashless health insurance at 5 Paisa Insurance.
