10 Hidden Conditions of Health Insurance | Know Before you buy!

Summary

In this informative video, Money-Minded Mandeep discusses the intricacies of health insurance, emphasizing the importance of understanding policies before purchase. He clarifies misconceptions, outlines the significance of no claim bonuses, and addresses the challenges of policy renewal and portability. Mandeep also highlights common scams and the importance of continuous coverage beyond the age of 60. The video serves as a comprehensive guide for selecting the best health insurance policy and navigating potential pitfalls.

Takeaways

• 😀 The importance of understanding health insurance deeply before purchasing to avoid superficial comprehension and potential dissatisfaction with coverage.
• 🔍 The creator's emphasis on explaining health insurance in simple language to help viewers navigate the complexities and find the best policy.
• 🏥 Highlighting the reality that a significant portion of medical bills in India are paid out-of-pocket, with only a fraction covered by insurance companies.
• 📉 The risk of falling into poverty due to unaffordable hospital bills, which affects a percentage of the population annually.
• 🎥 The creator's commitment to providing comprehensive information in a long video format, discouraging the expectation of brief explanations for such a critical topic.
• 💡 The explanation of 'No Claim Bonus' and its implications on increasing the sum assured over time without claims.
• 🚫 The potential issue of insurance companies discontinuing policies after years, leaving policyholders with limited options as they age or develop health issues.
• 🔄 The possibility of policy non-renewal if the policyholder has been dishonest or failed to disclose relevant health information.
• 🔗 The guidance on how to ensure policy continuity beyond the age of 60 and the use of Policy Bazaar to find suitable plans.
• 🚫 Warning against policies that automatically terminate at a certain age, emphasizing the need for lifelong coverage.
• 🌐 Mention of policies that include coverage for Ayush treatments but may have limitations, advising viewers to consider all aspects of a policy, not just this feature.

Q & A

Why did Mandeep create a 43-minute long video on health insurance?

Mandeep created the video to address two main reasons: first, to help people understand health insurance more deeply than just superficially, and second, to clarify misconceptions about what health insurance covers and how to choose the best policy.

What is the significance of the 'No Claim Bonus' in health insurance policies?

The 'No Claim Bonus' is a feature where if a policyholder does not make a claim in a year, their sum assured increases by a certain percentage the following year, potentially doubling the base sum assured over time, provided they consistently do not claim.

Why might a health insurance company refuse to renew a policy?

A health insurance company might refuse to renew a policy if the policyholder has not disclosed all relevant information, has cheated the company, or if the policyholder has developed multiple health conditions that significantly increase the risk profile.

What is the issue with the room rent cap in health insurance policies?

The room rent cap is generally 1% of the base sum assured. However, if the base sum assured increases due to no claim bonuses, the room rent cap remains at the original base sum assured amount, not the increased amount, which could be a disadvantage for the policyholder.

What is the problem with health insurance policies that close after the age of 60?

Policies that close after the age of 60 are problematic because health coverage is often needed even more after this age. It's important to ensure that a policy continues to provide coverage beyond 60 years to be adequate.

How can one avoid being scammed when purchasing health insurance?

To avoid being scammed, one should thoroughly research and understand the policy terms, make sure to disclose all pre-existing conditions honestly, and ensure the policy provides continuity beyond the age of 60 and does not have unreasonable restrictions or caps.

What is the importance of checking policy terms and conditions during renewal?

Checking the terms and conditions during renewal is crucial to ensure that the policy still meets the policyholder's needs and that there have not been any changes that could affect coverage, benefits, or obligations.

Can a policyholder port their health insurance policy to another company?

Yes, policyholders can port their health insurance policy to another company, but this process may be subject to underwriting and may not carry forward all benefits, especially if there are changes in coverage or new conditions are disclosed.

What is the situation with health insurance for Non-Resident Indians (NRIs)?

NRIs should consider taking health insurance if they frequently visit India, have family in India, or plan to settle in India in the future. There are plans available that offer global coverage, and taking a policy while young and healthy can be cost-effective.

Why is it recommended to have both government and private health insurance policies?

Having both government and private health insurance policies can provide broader coverage. Policyholders can use one policy for cashless claims at a network hospital and then claim reimbursement from the other policy for any remaining costs.

What is the potential issue with cashless claims at network hospitals?

A potential issue with cashless claims is that the insurance company may have a different agreement with the hospital, which could result in the hospital refusing treatment or asking the patient to pay a part of the bill if the company's payment to the hospital is less than the actual cost of treatment.