Having a health insurance policy is the first step in financial planning, as experts suggest before an individual starts saving. With the COVID-19 pandemic, purchasing health insurance online has also seen an increase, particularly due to the focus on health care costs.
While many people now know how to check out the features and benefits of a policy, and also do a comparison before purchasing a policy, there are still a few lesser-known facts to know.
Usually, health insurance policies cover pre-existing conditions after 36 or 48 months after purchasing the policy. However, it will only be applicable if the policyholder discloses them at the time of the request. If the policyholder conceals important medical information and existing conditions when purchasing the policy, claim settlement may be delayed. Failure to disclose them could also result in the claim being rejected in the future.
Various elements depending on the coverage include sub-limits. Usually the room rent has a sub-limit which is determined by the sum insured in the health insurance policy and is linked to the claim during hospitalization. For example, if the sum insured is Rs 5 lakh, the rent of the room is capped at 1% per day, or 5,000 Rs. If during hospitalization the rent of the room is higher, the medical expenses of the The policyholder’s hospital bill could be reduced proportionately. He / she might have to end up paying out of pocket even with a cashless medical insurance plan.
It is only when the premium for a health insurance policy is paid by check, net banking or any other digital mode that the premium can benefit from a tax advantage. If health coverage is purchased in cash, you will not benefit from tax benefits. That said, if payments are made for a preventive health check up to Rs 5,000, a tax benefit is allowed even if it is in cash.
Insurance companies perform buyer’s medical tests before purchasing a health insurance policy, but especially for those over the age of 45. However, insurers can also request a medical examination even for those who are under 45, in the case of a larger sum insured. Therefore, experts say one should always disclose all of their medical and family history in the application form while opting for a policy.
Free health check-ups
Most health insurers offer this offer once every 3 to 4 years, but policyholders are usually not aware of it. It will only be applicable if there is no claim on the policy. Experts say it could be used to do a full checkup. However, the amount is usually capped at 1 percent of the policyholder’s sum insured.
Note that under article 80D on the premium paid for the preventive health check, there is a tax advantage up to Rs 5,000 within the overall limit of Rs 25,000 or Rs 50,000 depending on age.