Don't buy health insurance out of fear!

You can view the video on YouTube here

At this time, you are in one of these two groups – you have health insurance (either corporate or self-purchased) or you don’t have health insurance. 

If you have health insurance, in all probability you would have received communication from your insurer (or your HR) stating that you are covered for hospitalization expenses against coronavirus.

If you’ve not purchased health insurance, you’re wondering if you should take one now. The answer is yes but only if you genuinely have a need for it (and not because of the fear of coronavirus). Insurance is a financial decision. It is slightly complex because one has to calculate an approximate amount they may need in the future. It involves a cost which is not low so don’t rush into it. The best part is you can do the whole thing online, without meeting anyone (even if it is through an insurance advisor). 

Once you decide on the product, the coverage amount and the premium, there is an online application form to fill. You may have to upload an identity document (PAN/ Passport etc). After this, you will have to pay the required premium, again online. Once the approval team (underwriters) goes through the application, they can either approve it or ask for some clarifications.

There could be a second process  - a medical test. This is required only if 

1. If you are above a certain age (usually 45 years)

2. If have a pre-existing condition (asthma, high BP, cholesterol, diabetes etc)

Usually, a blood test is enough and it is convenient because a person comes home, draws blood for testing. You may be asked to visit a diagnostic center for a specific test (example - pulmonary function test for asthma, treadmill test  for high cholesterol levels). The good news is some insurance companies are now doing tele / video call to see if they can waive the medical test. So if you are above 45 years but don’t have any pre-existing diseases, there is a high chance that you won’t have to go for a medical test. Again, contactless and safe (in the current context).

If you want a specific policy to cover coronavirus, check this article https://www.financialexpress.com/money/coronavirus-insurance-looking-for-a-covid-19-cover-here-are-your-options/1905821/  Remember to first check with your existing insurer for cover of  hospitalization expenses against coronavirus. As of now, the government is treating all patients so this cover may never be used. 

A quick checklist to assess health insurance policies

1. If you have a pre-existing condition, apply for a health insurance product which specifically covers that condition as there are higher chances of approval (yes, the premium will be higher)

2. Read the product brochure carefully to understand the features. Use this document to compare between products.

3. The more features a health insurance product has, the more it will cost

4. If you have a specific query, ask for the policy wording. Use the search option and read the specific terms associated with that. For example, if someone has varicose veins, they can search the policy wording to get a better understanding of how the insurance company treats this particular illness.

5. A good advisor will help you understand the terms and conditions better. They will also manage the claim related co-ordination, reducing hassles when you are already dealing with a medical condition.

6. Study the waiting periods and the exclusions so that you are not caught surprised at the time of claim.

Health insurance products are not simple and there are many features which sound important but may not be useful. Do try to analyse in detail and ask for clarifications till you are satisfied. Please feel free to contact me at mathewpravin@yahoo.com / 9900335853 with your queries and I’ll be happy to clarify.