Health Insurance or Mediclaim as it is popularly known, is another must-have cover for every individual, unless you own a hospital J Rising medical costs worldwide has made Health Insurance a compulsion for stable survival. Huge medical bills have badly affected financial stability to the level of bankruptcy.  A lot of people are covered by their office group medical insurance, but this is not enough. Click here to read why? 

What does Health Insurance cover?

A Regular Health Insurance or Mediclaim covers more than 24 hours hospitalization, unless technological advancement has helped certain illnesses to be treated and discharged on the same day – like a laser cataract surgery [called Day Care treatment] 

1. Room Rent, Surgery, Doctors Fees, Medical Checkups, Medicine costs etc.
2. Pre and Post Hospitalization Expenses
3. Emergency ambulance may be covered.

What is better à Family Floater or Individual Covers:

In comparison, Family floater wins hands-down, the reason being that a low cost, all the members of the family are covered for a larger cover.Total Cost of Individual rates for each family will be atleast 30% costlier. The flip side of a Family Floater policy,

1. If there is more than 1 claim in a year, then there could be a shortage of cover. So if you are going for family floater you should go for the highest cover.
2. People above 60 cannot buy a Family Floater
3. A Family floater in India is available only in one combination from the following members– Husband, Wife, Kids. A Family where you have 3 generations – like parents, children and grand children are not available in India as on date.

How to calculate how much Health Insurance you need?

This would depend upon where you stay and your age. Ideally everyone should go for atleast 5 Lakhs – as it would cover expenses of the largest cost surgeries such as an Open Heart surgery etc., but you do have the option to take a lower cover when you are young and then apply for higher covers. Remember the acceptance of a cover upgradation is at the discretion of Insurance Cos. which will decide on the basis of earlier claims, current age etc. 

What are the Papers required for applying for a Health Insurance?

1. Filled in Proposal Form.
2. Medical test may be required for age greater than 45.
3. Some Companies may ask for ID and address proof.

1. Check Room Rent Limits: There could be a limit on how much room rent you can spend. It is usually as a % of sum insured with a fixed value capping.
2. Check Co-payment clauses:  Some policies require you to pay a certain percent of every claim, some dont. Weigh your choices properly.
3. Check whether it is a indemnity policy or a benefit policy: There are huge no. of people victim of being sold a Hospital Cash Policy in the disguise of a regular Health policy.A regular Health policy reimburses [cashless or post] on costs incurred for hospitalization up to your sum insured.A Hospital Cash policy would provide you fixed cash per day of hospitalization. This policy is good as add-on policy with regular mediclaim as it takes care of allied expenses but not good as a stand-alone policy.