Secrets to Smart Health Insurance Selection
What terms to check and avoid?
The thing women have yet to learn is that nobody gives you power.
You just take it.
- Roseanne Barr
W: Welcome Story
Lily, a girl in her mid-20s, is full of dreams and aspirations. She is from a small town, worked hard to get to where she is, and four years after she began earning, she is placed comfortably in her career, lifestyle, and finances.
But life is not always that smooth, is it?
A few months ago, Lily fell sick. There was no improvement with regular medication. So she visited the doctor and got some tests done. The results implied she was diagnosed with a chronic illness that would require ongoing medical care.
Despite the shock, the treatment she went through, and the illness bothering the flow of her life, Lily was pretty calm and certain about one thing: Her Medical Expenses.
Thanks to her wise financial decisions from day one, she purchased comprehensive health insurance and paid yearly premiums.
As a result, she could focus on her recovery without the burden of financial stress. The insurance covered her medical expenses, ensuring she received the best treatment from the top specialists. All with zero worries about affordability.
The insurance protected her savings, which meant she could pay for regular check-ups to monitor her progress without a hassle.
Today, Lily’s health is fully recovered. She resumed working on her aspirations and rebuilt her life with newfound gratitude.
More importantly, she is still financially stable. And you know why.
E: Education
As discussed in the last issue, getting Health Insurance is one of the first things you should do in your money management journey.
“That’s okay, Meeta, but how will I know what makes good insurance?“
Don’t worry, we got you.
7 things to be mindful of before you purchase a health insurance
Understand the Co-payment Clauses:
Check if your policy has any co-payment clauses. These indicate the insurance covers only a certain percentage of your medical expenses, and the rest is on you.
For example, if a clause states 15% of co-payment, it means the insurance covers 85% of expenses and you must cover 15%.
Make sure your policy does not have co-payment clauses because, in case of high expenses, even 15% might take a toll on your savings.
More: Co-payment clauses are also based on zones. If your policy applies in a particular zone (assume your city), and you want to take treatment outside the city, you might still get insurance but only up to a certain percentage.
Consider the clause based on your zone and if the zone has required facilities if the need arises.Check Ward Limits
The terms of a few policies are limited. If there is a limit of INR 10,000 per day, and your hospital charges INR 15,000 per day, the remaining 5k is on you.
Ideally, you want to take up a policy with no ward limits or one with a higher upper limit.Cashless vs Reimbursement
Honestly, Reimbursement is a headache.
It is best for you if the hospital and the insurance company settle the expenses cashless. The moment you choose reimbursement, you are spending your savings and then waiting for the firm to reimburse the money.
These are a few extra steps you want to avoid (This becomes more exhausting when you’re in a hospital.)
So always choose policies with cashless terms and ensure enough hospitals are tied with your insurance firm accepting cashless settlements.
Study Payment Exclusions
Most policies do not cover cases like cosmetic surgeries, adventure sports accidents, or drug overdoses. Read these terms carefully and be aware of what incidents you can’t claim insurance for.
Yearly vs Monthly Premiums
While yearly premiums might not be for everyone, purchasing an insurance plan that allows you to pay monthly premiums helps you budget smartly and manage your money efficiently.
Pre-Existing Diseases
If you have any pre-existent diseases (PEDs) like asthma, diabetes, etc., it is wise to check if the policy covers them and what kind of benefits it provides.
Another important factor to consider with PEDs is the waiting period: The time you must wait before claiming insurance. Prefer policies with shorter waiting periods.Separate Health Insurance? A BIG Yes!!
If your company provides corporate health benefits, it is still necessary to purchase a policy of your own.
It is for a simple reason: When you change your company, your insurance no longer applies.
A: Actionable Steps
Start young. Your premium is far less when you start paying today vs. five years from now.
Check the Settlement to Claim ratio. The higher, the better.
Don’t just sign. Read through the terms carefully. Be aware of the clauses in your policy.
Compare different policies and opt for the one which suits your health conditions and financial needs.
Talk to people in your close circles. Ask them if they have claimed their health insurance at any point and how it helped them.
A little about Moolah
Moolah is a financial literacy and empowerment platform specially designed for women. We make finance simple, fun, and jargon-free so women can gently get introduced to the world of finance and start taking charge of their finances from a position of knowledge.
Moolah’s Flagship Program is a three-month Finance Essentials Course that delivers bite-sized content over WhatsApp and has 16 hours of Live interaction with Financial Coach, Meeta Gupta.
Moolah also curates customized content on financial literacy for corporates, institutions, and forums.
To know more about Moolah’s various activities, check out this brochure:
L: Learning
Moolah’s Courses on Insurance
If you want to learn comprehensively about insurance, we got two perfect picks for you!
Health Insurance Masterclass
Ms. Nandini Gupta, our Guest Expert, teaches the A-Z of Health Insurance: From understanding what health insurance is to what to look out for while buying a policy.
The best part? You’ll be able to make better insurance decisions not only for yourself but for your loved ones too.Life Insurance Masterclass
If you have no idea about how life insurance works, this is the course you’ve been waiting for. It is best suited for beginners and covers all the basic questions you might have about life insurance.
It’s simple, jargon-free, and explains everything in 60 minutes.
T: Thought Leadership
"Health insurance isn't a luxury,
it's a necessary buffer against life's unpredictability."
- Suze Orman
Suze Orman, a renowned Americal Financial Expert, emphasizes how we should stop looking at health insurance as a luxury or option and start purchasing one as a necessity.
H: Happenings
Free Moolah Webinar:
We have invited Sheela Kulkarni, Head of Mkt Development, World Gold Council to speak and share her thoughts on ‘Gold as a Strategic Asset Class.’
Register for the webinar here.
Venue: Zoom
Date: 16th July 2023, 6:30-7:30 pm ISTMonthly Q&A session:
Meeta answers all your finance questions on the third Friday of every month. Use this link to join the session and get your queries cleared!
Venue: Zoom
Date: 23rd July 2023, 6:30-7:30 pm IST
That’s all we have with today’s issue. We’ll see you again in fourteen days.
Until then, work on securing your financial stability with health insurance!
