Last year was challenging for us all on several fronts – finances, health (physical and mental), family, and work. But one thing that 2020 specifically highlighted is the need for a comprehensive health insurance plan. In times of desperate financial aid during medical emergencies, having a health insurance plan is a relief.
If you are yet to buy a health insurance plan, now is the right time to do so. However, for those who already have a policy in place, it is time to reevaluate it. Chances are that you might require extensive coverage or add-on features for tax-saving purposes. No matter what your purpose of reviewing health insurance may be, make it a point to do it before the financial year-end.
Things to Keep in Mind When Reviewing Health Insurance
As stated earlier, reviewing your health insurance is a must step towards sound financial planning. When doing this, be mindful to track policy details such as types of claims raised against the health plan, the remaining sum insured amount, No Claim Bonus (NCB) if no claims were raised in the previous year, and premiums at the time of renewal.
The health insurance premiums are mainly calculated based on the age of the oldest member in the policy. In fact, most insurers have policy pricing slabs in place. For instance, there is a significant difference between the health insurance premium rates for people from 26-30 years to 31-35 years of age.
If you are wondering how much will your health insurance policy cost you, use the health insurance premium calculator to determine the same. This online tool is available for free on any insurer’s website and helps you calculate the policy cost accurately based on your desired coverage.
Besides your age, the insurer considers several other factors. These are as follows:
- Change in Family Size: In case there is an addition in your family (newborn members) you might have to re-evaluate the coverage.
- Cost of Medical Procedures: As we know, healthcare costs are rising by the day. The health insurance cover you purchased a few years before may lack the needed coverage at the moment.
- Change in your residential area: Medical facilities are expensive in metropolitan cities as compared to rural areas.
- Change in employment: The health insurance plan offered by your previous employer may differ in coverage as compared to the new employer. To avoid any inadequacies in the same, it is best to have a personal health insurance plan (such as Bajaj Allianz Health Insurance) in place.
- Change in Health Goals: In case you have been maintaining a healthy lifestyle, chances are that you might want to review your health insurance plan to avail its rewards.
- No Claim Bonus (NCB): If you do not raise a single claim request on your health insurance plan for the said year, the insurer rewards you with No Claim Bonus (NCB). The NCB can then be used to avail discounts on your policy premium at the time of renewal. Moreover, some insurers allow you to use the NCB to increase your health coverage.
