5 Things Millennials Should Know and Consider While Buying Health Insurance

Millennials, who range between the age group of 26 to 41, are often in the limelight for the wrong reasons. They might get labelled as a generation that cares more about spending and prioritising experiences, and while that might be true, millennials also know how to be smart with their finances and health.

Especially after the onset of the COVID-19 pandemic, many studies have seen the shift in millennial mentality and their subsequent realisation that investing in health insurance and life insurance is crucial in today’s times. However, like every other age group, they, too, tend to get confused about what to consider while buying medical insurance.

And given the types of health insurance plans available, the purchasing process can seem daunting. However, having a guide map of things you need to consider while buying health insurance can point you towards the best health insurance plan in India.

5 Things a Millennial Should Know While Buying Medical Insurance

Here are five things you as a millennial should know while buying medical insurance:

• Understand the scope of health insurance benefits under the policy
  

  The first thing you need to consider while buying the health insurance policy is the exact scope of coverage offered under it. The coverage is the maximum sum of money your insurer will pay towards healthcare, hospitalisation, and the cost of treatment from any disease, accident, injury, etc.
  
  It will either be in the form of a lump sum payout handed to you at the occurrence of the health crisis or a direct settlement where the insurer will take care of all the medical bills via cashless claim settlement or reimbursement. You need to check the exact scope of coverage under the medical insurance policy.
  
  Look for the types and number of health eventualities covered – diseases, accidents, physical injuries, mental illnesses, and so on. Look for the number of surgical treatments covered, like cataracts, knee surgery, heart surgery, and the like. Check whether the medical insurance policy covers dental treatment, pre- and post-hospitalization, ambulance services, and other ancillary charges.

• Check the waiting period under the policy
  

  A waiting period is a period during which the policyholder cannot avail of the health insurance benefits under the insurance policy. Waiting periods are mandatory timelines in every form of insurance, including health insurance.
  
  There are three types of waiting periods – a general or initial waiting period of 30 days or so where the medical insurance policy is yet to kickstart or come into existence. There is a pre-existing disease waiting period, which is often the longest and can last anywhere between 2 to 4 years. It is applicable for lifestyle ailments like diabetes, hypertension, asthma, heart disease, and the like.
  
  There is another waiting period (often known as the survival period) for critical illnesses like cancer, liver/ kidney disease, and other illnesses of a life-threatening nature. It lasts anywhere between 30/ 60 days to a year.
  
  Surgical procedures like cataract surgery, knee/ hip replacement surgery, and others also have a waiting period of 2 years or so. The length of each waiting period depends on the insurer, so check all the timelines under the insurance policy.

• Check the sub-limits in the medical insurance policy
  

  Every medical insurance policy has a sub-limit up to which it covers expenses. A sub-limit (or deductible) is the maximum percentage of coverage an insurer will provide. For instance, if your medical insurance policy covers cataract surgery after two years, it may cover only 40% or 60% of the surgical costs leaving you to pay the rest.
  
  It may or may not cover the entire cost of cataract surgery, but it will clearly state the extent of the deductible under the medical insurance policy. Only for some diseases/ procedures the medical insurance policy covers 100% of the finances.
  
  Read the terms and conditions of the policy in its entirety to see the extent of financial coverage you will be receiving before finalising a purchase and to avoid any unpleasant surprises at the time of claim settlement.

• Consider separate policies for different family members and needs.
  

  There are various types of health insurance policies. Some of these include:

  • Individual medical insurance policy
  • Family floater policy
  • Critical illness policy
  • Personal accident insurance policy
  • Vector-borne diseases insurance policy
  • Group health insurance policy
  • Maternity health policy
  • Senior-citizen medical insurance policy

  You will receive coverage depending on the type of health insurance policy chosen. Each medical insurance policy type will cover different health scenarios and medical issues.
  
  For instance, a critical illness insurance policy will cover the cost of treating only life-threatening diseases like cancer, heart attack, kidney failure, and more. The same medical insurance policy will not cover injuries caused due to an unforeseen accident.
  
  Moreover, different age groups require varying levels of healthcare. For instance, a senior citizen will require healthcare for health reasons different than a mother who needs maternity care. The senior citizen will require a medical insurance policy for old-age-related ailments, while the new mother might require health insurance for childcare and delivery needs.
  
  So, it is crucial to assess the differing needs of your family and choose different policies customised to their needs. Often, a simple family floater policy can either cut it or not.

• Know the claim settlement ratio of the insurer
  

  The claim settlement ratio is the no. of insurance claims approved and settled by an insurance company each year. The percentage of insurance claims fulfilled by an insurer shows how reliable and trustworthy they are.
  
  It indicates their commitment to their customers and how seriously the insurer takes their obligations towards their clientele. Insurance experts suggest choosing an insurance company having a claim settlement ratio of at least 95%. The higher this ratio, the better. Insurance companies with a higher claim settlement ratio automatically have better goodwill.
  
  You can also check the customer reviews left by existing or previous customers for further clarity. Another good practice is to check if the insurer is listed on the certified insurer list at the official insurance authority website (The Insurance Regulatory and Development Authority of India).

Conclusion

Keep these factors in mind while buying medical insurance, and you will be good to go. These pre-considerations will save you a lot of time, effort, and unnecessary confusion. Remember to also consider your budget and specific healthcare needs to find the best health insurance plan in India. To know more about term plan, term insurance, ulip plan, retirement plan and long term savings visit PNB MetLife website.