8 Lesser-Known Facts to Consider When Buying Star Health Insurance Policies
Updated On Sep 08, 2021
Do you want to buy health insurance offered by Star Health Insurance Company?
Are you wondering how one can quickly buy a health insurance plan on his/her own? Have no fret. Just read this article. It will help you find the most suitable Star Health Insurance Policy.
But, before this, let’s get to know this experience.
One night when I was busy with my daily schedule. One of my friends gave me a frantic call. He wanted me to immediately suggest him an adequate health insurance plan so that he can submit proof of tax deduction to his employer. He had not enough time to research and buy insurance. Also, he found insurance products way too complex.
That made me think.
Getting good health insurance for self and family or even tax deduction is admirable. But buying a product in a hurry, or based on a friend’s recommendation can restrict the quality of healthcare.
Here are 8 lesser-known facts to consider when buying Star Health Insurance policies.
1. Type of cover:
Before opting for any Star plan, ask yourself ‘what kind of health cover is suitable for me?’ Health insurance policies are broadly categorised as the following:
- Indemnity plans: This type of plan is usually a mediclaim or a family floater policy. In such plans, your insurance company reimburses the hospital expenses up to the sum insured.
- Defined-benefit plans: This is a kind of plan which pays the policyholder a lump sum amount regardless of the actual treatment expenses. A critical illness plan is an example of a defined-benefit plan.
Star Health Insurance Company offers both the plans.
2. Individual vs. Family Floater:
Star Health Insurance has individual and family floater plans. So, don’t be confused between them.
Let me explain Individual vs. Family Floater separately.
Individual Policy: Go for an individual cover over a family floater if you want an extensive coverage. The individual plan needs to be purchased in the name of each individual like spouse, parents, and children. The premium is decided as per the individual’s age and the sum insured. Also, the adverse experience in one policy doesn’t affect others in the family.
Say for example, if one member of the family files a claim, the sum insured of other members remains intact. The insurance company may, however, allow discounts on the total premium if more than one member of the family is covered simultaneously.
Family Floater: The family floater policy covers more than one member under the same plan. If you buy a Star Health family floater plan, it will provide coverage for you, your spouse and your children and you have to pay a single premium.
Under such plans, any one insured member or all insured members together can avail the entire sum insured. It is not restricted to one individual as in case of an individual health insurance policy.
3. The Amount of Cover Required:
While there is no hard and fast rule to determine how much health insurance you should have, the coverage is decided based on your residential city and family medical history. If you’re residing in a metropolitan city, the ideal coverage amount should be a minimum of Rs. 10 Lakh given the high cost of living in cities. For people living in small cities, the minimum sum insured should range between Rs. 4 Lakh and 5 Lakh.
It’s important to note that the standard of living and medical costs are more expensive in metropolitan cities than in smaller towns. The sum insured in Star Health Insurance Policies starts from Rs. 1 Lakh depending on the plan you choose. So, select the policy sum insured based on your city.
A co-pay or co-payment is a clause under which you have to pay a certain percentage of hospital bills. This clause is also applicable after the insured person reaches old age. The Star Comprehensive Health Insurance is subject to co-payment of 10% of every claim made by the insured who is above 60 years at entry-level and renewals thereafter. Before choosing a plan, make sure you have checked out the co-payment clause.
Like the co-payment, also check the sub-limits in the plan. In general, sub-limits refer to capping the reimbursement limit. Some Star Health Insurance Policies have a cap on room rent. Say, for instance, Senior Citizens Red Carpet Health Insurance Policy applies a sub-limit of 1% of the sum insured on the room rent. The maximum sub-limits depend on the sum insured amount chosen. So, check the sub-limits before choosing any policy.
6. Restoration benefits:
Restoration benefit is a term that lets insured to restore the whole sum insured in the policy year when it is exhausted because of incurred claims. Most of the health insurance policies are offering restoration benefits these days. And Star Health Insurance is no exception. Its Comprehensive Insurance Policy offers Automatic Restoration of the entire Sum insured by 100%. Restoration benefit in a floater plan can be of great long-term value.
7. No claim bonus:
No Claim Bonus (NCB) is another feature to consider while purchasing a Star Health Insurance Policy. It is a useful buffer against medical inflation. Insurance companies reward policyholders for the claim-free year by increasing the sum insured. Before opting for any plan offered by Star Health Insurance Company, take into account the NCB benefit.
8. Free health check-up:
Many health insurance companies offer free health check-up to customers under some plans with some conditions. It is advisable to check for that particular plan under the Star Health Insurance which comes with the free health check-up feature.
Over to You
Star Health Insurance Company is a market leader when it comes to standalone health insurance companies in India. It offers a wide range of health insurance products that comes with unique benefits and features. But without doing proper homework and considering the above facts, you may fail to pick the right product for you and your family. So, do consider these lesser-known facts apart from the basic cover. This will help you select a suitable health insurance policy offered by Star Health Insurance Company.