A Millennial’s Guide to Health Insurance

Health Insurance

Millennials have become aware about the importance of a health insurance policy. They understand the need of a financial cover if medical emergencies strike and so, they are investing in a health plan for themselves as well as their family. Health insurance, however, is a technical cover and so, here is a simple guide to the policy if you are thinking of investing in it –

  • There are different types of plans

    Health insurance is not only available for covering your medical bills in case of hospitalisation, there are different plans that you can avail of for comprehensive coverage. Besides the basic plan for covering hospitalisation, you can buy critical illness cover for protecting against major illnesses. Then there are COVID plans if you are worried about being infected. So, expand your coverage. Opt for other plans and build a layered coverage against medical contingencies.

  • Check for sub-limits

    Some health insurance plans impose room rent sub-limits which restrict your coverage. Check for these sub-limits. Try and avoid plans which have such limits because your claim would be considerably affected if the actual amount exceeds the limit. Moreover, there are coverage limits on various benefits like ambulance costs, maternity expenses, AYUSH coverage, domiciliary treatment, etc. Check the limits when buying and try and opt for a plan which has a higher coverage limit so that your out-of-pocket expenses reduce.

  • Riders are beneficial 

    Health insurance plans allow optional riders that you can choose by paying an additional premium. Riders like critical illness cover, maternity and new born cover (if you are planning a family), personal accident cover, etc. make for good coverage additions as they provide a wider scope of coverage. So, look for the available riders and try and add them for an inclusive coverage in your policy.

  • A healthy lifestyle is rewarding

    Modern day health insurance plans reward you for living a healthy life. Daily exercising, walking, meditation, Yoga, balanced and nutritious meals, etc. not only keep you fit but also help in reducing your health insurance premium. So, if you are a health conscious millennial, use your healthy lifestyle to get rewarded under your health plan. If not, it’s time you adopt a healthy lifestyle, both for your health and your wallet.

  • Insure parents separately 

    If you are buying a health insurance plan, try not to include your parents under the same cover. There are two reasons for this –

    1. Since your parents would be the eldest members, the premium would be calculated based on their age. This would drive up your health insurance cost
    2. If they make frequent claims on the policy, you would not be able to accumulate the no claim bonus

    So, opt for a separate health plan for your parents and buy another plan for yourself. Besides ensuring a suitable coverage, you would also be able to avail additional tax benefits on the premium paid.

  • Don’t depend on your group health plan only

    If you are employed, your employer might provide you with a group health scheme. Though the plan provides the basic coverage, the coverage is limited and not customizable. Moreover, the coverage is available for as long as you are employed. Invest in an independent policy so that you can get optimal coverage that can also be renewed life-long. 

Understand the basics of health insurance and invest in a suitable policy. You might be a modern age individual in the prime of your health but, remember, contingencies come unannounced. Prepare yourself against medical contingencies by investing in health insurance plans. Believe me, you would be thankful that you did!

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