Do You Have an Optimal Health Insurance Cover

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In today’s fast-paced environment, health frequently becomes secondary until something unexpected demands our full attention. Escalating medical expenses can swiftly transform a health crisis into a financial burden. This is precisely why having appropriate health insurance coverage is crucial. It not only protects your savings but also provides you with the reassurance that you and your loved ones are secure during critical times. So, how can you determine if your health insurance coverage is adequate?

Here are a few key factors you need to evaluate to determine your Health Insurance coverage:

Current age
Family’s medical history
Whether you, as the insured, have any pre-existing diseases or comorbidities
The number of dependents you intend to cover under the Health Insurance policy
You and your dependent family member’s current personal health.
The location you reside in (to assess the cost and networks of hospitals that have tie-up with the health insurer).

Your choice of Health Insurance coverage should be 50% to 100% of your annual income. Ideally, given that healthcare costs are rising, you should increase your sum by around 10%-12% every year.

Also Read: How much Health Insurance do you need?

Here’s a checklist to consult when you buy a Health Insurance policy:

Questions to ask	Specifics to look out for
1. What are the exclusions from the Health Insurance policy?	Check if it covers medical expenses arising out of a pandemic, war, riots, terrorist attack
2. Is there a co-pay clause?	Check for a clause in the Health Insurance policy that requires cost-sharing by the insured
3. What is the coverage for pre and post-hospitalization expenses?	Check for the number of days it is allowed and if there are any sub-limits on the room rents.
4. Are there limits on preventive health check-ups and day-care procedures covered?	Check the limits for tests like x-ray, Cardio Doppler test, CT scans, MRI, etc., ICU charges, the cost of treatment and surgeries.
5. What is the background of the promoters of the insurance company?	Check for the network of hospitals that have a tie-up with the health insurer and whether a cashless facility is available.
6. What is the number of years of its existence and the financial strength?	Evaluate the claim settlement ratio (i.e., the percentage of claims settled against the total claims lodged with the insurer; this ratio should be among the best in the industry), the solvency ratio (i.e., the net worth and the reserves and surplus held by the insurer), and the profitability ratio (to understand whether the insurance company generates enough income for its stakeholders after meeting all the expenses).

Did you know:

The Health Insurance premium you pay every year will entitle you to a deduction of up to ₹ 25,000 per annum under Section 80D of the Income Tax Act, 1961.
If you, a non-senior citizen, are also paying Health Insurance premiums on behalf of your family members who are all below the age of 60 years, the maximum total deduction you can avail of is ₹50,000 per annum (including for your own health insurance policy).
If you are a non-senior citizen and are paying Health Insurance premiums on behalf of your family members, which include parents over 60 years of age, the maximum total deduction you can avail (including for your own Health Insurance policy) is ₹ 75,000 per annum.

Making a prudent choice with your Health Insurance plan would provide financial security to you and your loved ones in the case of an unfortunate event. Axis Bank has tied up with leading health insurers offering a range of Health Insurance plans so that you and your family members are financially prepared and well protected.

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.