Insurance World

Hospital expense insurance covers the expenses incurred on a patient’s hospital stay, provided he/she already has a subscription in this regard.

Nobody has ever lived a life time without a bout of illness and a subsequent hospital stay. This is something inevitable as no one is perfectly immune to diseases. And every hospital stay one has brings with the discharge order a mind boggling bill - the psychological effect of which is more than enough to send back the fitness-regained patient for another few days for treatment in the same hospital. When it comes to health related issues, no one could keep a check on the cash flow. After all, in such circumstances, it is the question of life and health that supersedes the financial issue. But with hospital expense insurance, one could reclaim the money spent by producing all the relevant certificates and bill.

Hospital expense insurance is one form of the health insurance that pays for the expenses incurred for the patient’s room and board costs. The coverage also compensates financially for incidental expenses such as x-rays, the use of the operating room, anesthesia, drugs and laboratory charges. When it comes to payment, some insurance providers prefer to pay the claim on an indemnity style where the insurer pays a definite sum each day for a set maximum number of days. Some players, on the other hand, opt to pay the actual bill or a percentage of the actual amount regardless of what the amount the bill indicates.

Generally, at the time of the payment, the insured is paid a claim that amounts to a fixed percentage of the policy amount minus the deductibles. Various hospital expense insurance policies follow different schemes and hence the payable amount varies a lot. The customer should ideally see if the “stop-loss” or “coinsurance maximum,” which limits the insured person’s liability is at an acceptable limit. A decently followed scheme does not put much burden on the customer. Also look for those insurance providers who offer a maximum benefit ceiling.

Practically, there are a large number of hospital expense insurance policies which are rejected on technical grounds. The reality is that, for the insurance firms, their aim is to make profits and by denying one a hospital expense insurance policy claim, actually the company is gaining profits in larger numbers. Inadequacy or discrepancy in the information provided by the customer is one of the grounds in which they deny a policy. Hence, the customer should ensure that he/she provides the correct and updated information to the insurance companies.

Also, the customer must be thorough with the rules and regulations that define the hospital expense insurance policy. See to it that all relevant documents and papers are in place. Remember, a missed piece of document is a valid ground for refusal of a claim.

Before buying any hospital expense insurance policy, the customer ideally should be doing a bit of research on the insurance scene of his/her place of stay. One can go by references if you have any trusted friend or you know anybody who have had successfully claimed the hospital expense insurance. In this regard, browsing the insurance company’s home sites facilitates for an easy comparison of similar policies and their rates.

To conclude, how much the customer may need to shell out along side the claim amount so as to pay the hospital expense directly depends upon the hospital expense insurance policy he/she selected. And that requires a good application of discerning senses and yes, a bit of common sense as well.

Life insurance is important but you must get your facts right before buying it. Before buying it you must know what the policy offers and what it does not offer. And for this you must make your agent sit and answer your questions.

Life insurance gives you a secure future however you must not think that it will protect you against all the possible events. Such policies that protect you against all eventualities are actually not worth it. It addition to that they will also cost you a small fortune. So make a list of questions and get them answered before you buy the policy.

1. What are the prohibiting clauses?
You must know what your policy covers and what it does not. To avoid buying unnecessary coverage, you must fully understand all the clauses. If you do not understand a particular section, ask your agent or company representative. All this will make you feel comfortable and save you from unwanted nervousness.

2. Do you have an exchangeable policy and for how long?
If your policy is convertible, you must ask about this clause and all the clauses associated with it. You can exchange a convertible policy with another policy later on without providing further evidence of insurability.

3. Is there a loan clause in your policy?
A loan clause allows you to borrow from its cash value. People are often not aware of this clause, and so you must not forget to ask about it. Also ask about the tenure and interest.

4. What premiums you have to pay?
You must know whether you have to pay a fixed or a variable premium. Different companies have variable rates for premiums. You must know how much you will have to pay along with the due dates. This is the most important thing and you must get it clear before hand.

5. When does your policy expire?
You should know when your policy starts and when it ends. Check if your policy offers a grace period. Some renewable policies offer a grace period of 31 days after the expiry date. You must get yourself clear on this issue.

6. What change of plan provision does the policy have?
There are clauses which allow you to change over to a high premium policy during the lifetime of your plan. You must know if your policy offers this clause and you must also know the criteria for it.

7. How do you claim your policy and is your policy renewable?
You must know how to claim your policy. For this the contact person or agency must be clearly mentioned in the document along with the necessary guidelines. You must also know the basis on which the company can refuse your claim. Policy renew ability is another thing which is very important for you to know. You must know the criteria for renewal. Make sure that this clause is clearly stated in your policy.

Get all your doubts clear before you buy a policy. You want a safe and secure future for your family, and for that you must understand your policy properly.