October 10, 2022
Hear your guide to buying a child health insurance plan in India
A child is the most important person in a parent’s life. Parents work hard and go to great lengths to provide the best possible life for their children in terms of education, medical care, lifestyle, food, entertainment, etc. However, children frequently fall ill with poor eating habits and increasing pollution and are vulnerable to infectious diseases. diseases such as malaria, pneumonia, diarrhea, etc. Apart from this, there has been an increase in the number of children suffering from serious health conditions like diabetes, obesity, cancer, etc.
Growing health risks to children are of concern to many parents, as these illnesses and conditions can have a long-term impact on their physical and mental health. Also, the cost of medical treatment and medication is skyrocketing, which can add financial stress to an already stressful situation. Therefore, to ensure that you provide quality health care to your child, it is crucial to add your child to your health insurance plan or purchase a health insurance plan for yourself.
So when it comes to covering your child with health insurance, you can either opt for child health insurance or add the child’s name to your family health insurance float. Let’s understand how these plans work:
1. Individual health insurance plan for children:
Similar to an individual health insurance policy, you can purchase a separate individual health insurance policy for your child. Although purchasing an individual health insurance plan for each family member can be expensive, it ensures that your child is covered by a separate sum insured. Purchasing this type of plan makes sense when the child needs frequent health care, or adding them to a family plan can significantly increase the premium due to their pre-existing conditions.
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2. Floating Family Health Insurance Plan:
When parents have a joint health insurance plan or a family floating health insurance plan, the first thing they consider when covering their child with health insurance is to add it to their family floating plan. Since a single policy provides coverage for all family members, the premium for the policy is significantly lower than purchasing individual health insurance plans for each member. However, the sum insured is distributed to all members. Thus, if one of the family members has used the entire sum insured, the other members cannot benefit from the policy.
Apart from these two types of policies, employees can also add their child to their company health insurance plan, provided that the employer provides coverage for the spouse and children. However, we do not consider corporate health insurance plans as it is not advisable to depend on these plans. The employer can change the terms and conditions of the plan at any time or can decide to stop providing the facility. Not having sufficient health insurance coverage can deprive you of quality medical treatment.
Here are some things to consider when buying health insurance:
1. Child’s age:
When covering your child with a health insurance plan, the most crucial factor you need to consider is age.
New born: Many health insurance policies provide coverage for children after 90 days of birth, and some policies may have a longer waiting period than that. Therefore, if you want to cover a newborn baby, you should look for a contract with maternity cover or take out separate supplementary maternity insurance with your health insurance plan.
From childhood to adolescence: For children through their teens, you can add them to a floating family health insurance plan or purchase separate individual health insurance based on their health needs. If the child does not have specific requirements, it is advisable to add them to your family floating health insurance plan as this can save a considerable amount on the premium.
Young adults: Floating title family health insurance plans generally provide coverage for children up to age 25. When kids finish school and start paying their bills, it makes sense to have their own health insurance coverage.
2. Wide Coverage:
The coverage of a health insurance policy corresponds to the treatments and situations covered by the policy. You must ensure that all primary and potentially necessary treatments and situations are covered by the children’s health insurance plan. The broader insurance coverage will ensure you get financial support for most illnesses.
3. Sufficient sum insured:
The sum insured is the maximum amount you can claim from your health insurance plan. Often people go for a policy with a lower premium which might not offer enough sum insured. This does not serve the purpose of having health insurance because in the end, you will have to pay the additional medical costs out of your own pocket. It is therefore important to ensure that your child has enough insurance for all of their health needs.
4. Other benefits:
Not all insurance companies offer the same benefits under a health insurance policy. Thus, you should compare the different benefits offered, such as ambulance fees, room rent cap, day care, critical illness, a list of inclusions, etc., and choose the right package that meets your child’s needs.
5. Neonatal or postnatal care:
Although the maternity plan covers the delivery costs, there could be many more expenses after the child is born, such as inoculation, vaccinations, etc. Therefore, it makes sense to purchase a maternity plan or maternity supplement to ensure that all of these expenses are covered by insurance.
6. Network hospitals:
Make sure your preferred hospitals are on the list of hospitals in the insurer’s network. This will help you avail the cashless claim facility. Plus, you won’t have to worry about finding money to cover medical bills in a stressful situation.
7. Policy premium:
You should compare and verify the premium you pay against the sum insured and the benefits offered. You can easily check the premiums for different health insurance policies using the premium calculators available on the official websites of insurers. As mentioned earlier, adding your child to a floating family health insurance plan is a cost-effective way to cover them with health insurance.
8. Complaint Settlement:
The claims process should be quick and easy. And the insurance company must have fast customer service. The claims settlement ratio represents the number of claims successfully settled compared to the number of claims filed in a year. A high claims settlement ratio means that the chances of your claim being settled are high.
9. Company Reputation:
Apart from the claims settlement rate, you also need to consider the goodwill of the business, the number of years in business, the solvency ratio which defines the ability of the business to pay its short and long term debts term and the number of policies issued in a year.
Make sure that the purchase and renewal of your health insurance policy can be done without problems. Many insurers offer online purchase and renewal of policies, which saves you a lot of time and money. Also, the flexibility to make changes to the existing policy is another feature that can come in very handy.
11. Exclusions, exemptions and general conditions of the policy:
Before buying the health insurance policy, make sure to carefully read the list of exclusions, policy exemptions and policy terms and conditions. Reading all policy documents beforehand will help avoid any future litigation.
This article explains everything you need to know before purchasing a health insurance policy for your child or adding it to your family floating health insurance plan. Make sure to consider the suggested points before making a buying decision to choose the best suitable children’s health insurance policy. Make sure you understand the plans, compare plan benefits and premiums, and read all policy documents carefully. This will help you make an informed decision.