Anirban runs a photography studio and has a team of 17 people working for him. With his business expanding rapidly and the pressure rising, he can feel his health deteriorating even more rapidly. He’s been falling sick at regular intervals, and he fears that it will get worse especially now that his list of responsibilities keep increasing. While he made sure that his employees are insured, he needs to get a good health policy for himself and fast!
What are the health insurance policies for business owners that Anirban can consider to face such situations with reassurance? How important is it for business owners to be insured in terms of an effective health insurance policy?
Before getting into the different policies that are available for business owners like Anirban, there are a list of things that need to be checked:
Important Points to be Check
Fix a budget one is comfortable with: Carefully analyze the amount of premium that one can pay per the policy requirements. It’s never about the picking the lowest premium but the smartest one. It is essential to read about the sum assured based on the premium paid and the nature of the health insurance policy selected.
Decide one’s requirements: There will be many policies available from different insurance companies. Make sure to study all the benefits provided by each policy carefully before picking one. For example, if one wants a family member to be covered under one policy, if one requires a specific hospital’s cashless benefits, etc. There will also be very specific health insurance plans that cater to specific kinds of illness and disabilities. In that case, one can opt for multiple insurance policies or choose a policy that offers add-ons which cover special requirements.
Pick individual/family/joint policies: It is important to understand the difference between the three before finalizing the plan—the first covers only the policyholder, the second provides cumulative coverage to (up to four) family members including parents, while the third is for married couples. Employees insured under the company’s provided insurance policy may not be the same as the one that the business owner might require.
You may also like to read about: What Health Insurance Means for Business Owners?
Here are the top 3 health insurance policies for business owners to consider based on their high incurred claim ratio:
1. New India Assurance Health Insurance
Overview: This Company is one of the leading health insurance providers in India. They provide a number of health insurance policies that fit the needs of different individuals and families. Moreover, these policies are known to be economical, coupled with a competent customer care team that ensures each claim or grievances is properly addressed.
Types of Policies: Business owners can choose from any of these policies New India Asha Kiran Policy, New India Floater Mediclaim Policy, Mediclaim 2007 Policy, Mediclaim 2012 Policy Mediclaim, Janta Mediclaim Policy, Family Floater Mediclaim Policy, Union Health Care Policy, and Senor Citizen Mediclaim Policy. Specific policies for cancer patients are also available, namely: Cancer Insurance Policy (availed by members of the Cancer Patient Aid Association), and Cancer Medical Expense Policy (availed by members of the Indian Cancer Society).
Eligibility: Certain policies will have specific criteria for the eligibility age, but for most the entry age for business owners is from 18 years to 65 years. The renewability for most policies will be applicable for a lifetime provided premiums are paid regularly. Medical screenings might be required for some policies, especially for those over 50 years of age.
Premium: This will vary depending on the nature of the policy. Mediclaim policies will have specific guidelines for premiums (such as 10% for individual plans or based on one’s age and health condition). For most policies, this can range from as low as Rs.750 to as high as Rs.38,500 annually.
Coverage: The New India Asha Kiran Policy covers not only hospitalization expenses (common to most of the policies) but also post-hospitalization expenses. This also comes with a Personal Accident Cover which provides up to 50% compensation for the individual and/or spouse. In general, most policies cover ICU charges, cataract treatment, organ donor hospitalization treatment, ayurvedic/alternate medical expenses, pre- and post-hospitalization charges and more.
Sum Assured: This depends on the nature of the policy, and can range between Rs.1 lakh and Rs.8 lakh.
Policy Period: For most, this remains 1 year with lifetime renewability.
Benefits: Generally, these policies offer cashless benefits with good discounts on health treatments. Again, it may vary for certain policies.
2. Bajaj Allianz Health Insurance Plan
Overview: One of the most popular and preferred health insurance companies in the country, Bajaj Allianz offers a host of premium health insurance plans that a business owner can choose from.
Types of Policies: The policies offered include Health Guard Family Floater Option, Health Guard Individual Policy, Premium Personal Guard, Surgical Protection Plan, Silver Health Plan for Senior Citizens, Critical Illness, and Extra Care.
Eligibility: Entry age remains the same for this (from 18 years to 65 years). Medical tests may be required for certain policies for those over 45 years of age.
Premium: Premium rates will vary; some policies have premiums as low as Rs.2500 (Extra Care). The business owner can also avail income tax benefits based on the premium paid per Section 80D of the Income Tax Act.
Coverage: Most of the policies cover cashless benefits for over 3700 hospitals across the country. The Health Guard Individual Policy also provides 10% medical discount for the individual family. Additionally, one can also avail 10% cumulative bonus for each claimless year. Plans like Surgical Protection Plan, Premium Personal Guard Policy provide a trial period of 15 days and if one is dissatisfied, this policy can be cancelled with full refund. Surgical Protection Plan provided additional covers to choose from, such as critical illness, personal accidents, and hospital cash daily allowance.
Sum Assured: For most policies, 50% of the insured sum is assured. For a few specific policies, a fixed amount will be mentioned in the policy guidelines (e.g.: Surgical Protection Plan has 11 plans and the sum assured varies from Rs.1 lakh to Rs.10 lakh).
Policy Period: 1 year (most policies will offer a lifetime renewable option).
Benefits: Some of these policies have been created to cater to very specific requirements: surgeries, extra care, premium plans for senior citizens that provide a host of benefits. Cashless hospitalizations, discounts on medical treatments (not alternate ones) and free health check-ups are some of the standout benefits of these policies.
3. National Health Insurance
Overview: This is a central government owned insurance company, and is one of the oldest health insurance providers in India. It has been known to provide affordable insurance policies for individuals and families all over the country.
Types of Policies: The different policies are National Mediclaim Policy, Parivar Mediclaim, National Mediclaim Plus Policy, Varistha Mediclaim Policy for Senior Citizens, National Insurance Individual Personal Accident Policy, National Insurance Critical Illness Policy, and National Insurance Janata Personal Policy.
Eligibility: 18 to 65 years, with no limits on the renewability period. Medical screenings will be required for those over 50 years of age for specific policies.
Premium: Depending on the age and the sum assured selected, the premium can range from Rs.15 per Rs.25,000 to as high as Rs.40,124.
Coverage: Coverage for most policies will include inpatient hospitalization, a percentage of the sum assured for hospital and ambulance expenses. National Mediclaim Policy offers add-on covers like critical illness and outpatient treatment.
Sum Assured: Depending on the policies, this can go up to Rs.25 lakh. The Individual Personal Accident Policy provides 5% increase on the sum assured, limited to 50%. Individuals under this policy can also avail cumulative bonus under the Comprehensive Cover for each claimless year.
Policy Period: While most policies will have no limit for renewability, some policies like Parivar Mediclaim Policy will have a maximum renewability age (65 years in this case).
Benefits: These policies provide similar benefits like cashless hospitalization, ICU costs, a fixed percentage of sum assured for claim-free years, emergency assistance, and more.
It can be a little daunting trying to select the best health insurance for business owners. Most of these policies will have common benefits and covers, but there will always be certain features that cater specifically to issues related to one’s general health, short-term/long-term illnesses and more. This is why it is always a good idea for a business owner to assess what kind of health security and protection is expected from the policy, and ensure one get the best and most out it.