How do you Choose a Health Insurance Plan for What if your Family Members?

Answer 1

With the final deadline of the Dubai Health Insurance Law fast approaching, many residents of Dubai will find themselves having to buy medical insurance for their family members. By June 2016, every resident of the Emirate will have to be insured; and when it comes to dependents, it is the responsibility of the sponsor to purchase a medical policy for them. In other words, if your employer does not cover your family members, it will be your responsibility to do so if you are their sponsor.

Finding the right policy does not have to be complicated. The process will be easier if you know what factors to keep in mind while choosing the best health insurance policy for your family.

Health insurance is a new sector in the UAE and therefore not many people are aware of the different types of medical policies nor the insurers that provide them. With approximately 60 insurance companies present in the UAE, there is a wide variety of options to choose from. In addition to many of the major international insurance companies such as AXA, CIGNA, Metlife, Aetna and Bupa, many local companies such as DAMAN, ADNIC, and Orient Insurance also provide competitive plans. With so many options available, how do you decide which health insurance plan is best for your family?

Laws and regulations

Medical insurance is regulated separately by each Emirate. So if you are an Abu Dhabi visa-holder, or live in the emirate, you have to buy a health insurance policy that is approved by HAAD (Health Authority Abu Dhabi) in order to meet local regulations. Likewise, if you are a resident of Dubai, you need to purchase a policy that is approved by the DHA (Dubai Health Authority).

Start early

One of the smartest things to do is to start evaluating the different types of available policies early. Read up on them and try to get as much information as you can about the different health insurance companies, their reputation in the market, as well as the coverage and exclusions associated with each plan. Fortunately, Bayzat makes it easy to compare and buy health insurance in the UAE. When it comes to individual or family medical insurance, it takes around two weeks to complete the process of buying a policy. Once you select a plan, you have to submit a medical application form to the insurance company for underwriting. This means they assess your health based on the application form, and decide if they should leave the premium as is, or increase it due to a medical condition. Depending on the insurer, this can take a couple of working days.

Find out the various plans and networks

You may have been going to your family doctor for many years now and you probably wouldn't want to suddenly start going to a new doctor. Each insurance policy covers a specific set of hospitals, clinics and pharmacies under what is known as the medical network. If you go outside the network, you typically end up paying the entire treatment cost from your own pocket, after which the insurer will reimburse you. In the UAE, most insurers charge you a penalty for going outside the network in the form of co-insurance; depending on the health insurance plan you selected, you could end up paying 20% to 50% of the treatment cost. If you are comparing health insurance on Bayzat, you can search for different policies based on hospitals or clinics. Even if you don't have a specific doctor in mind, you can still choose insurance plans that cover doctors or hospitals that have good reputations or that are closer to your home.

Budget your premium

With the majority of individual health insurance policies in the UAE, you have to pay the entire annual cost up front. Plans with lower premiums often translate into higher out-of-pocket fees, lower coverage limits as well as more restricted medical networks. So, if you choose a plan based on a low premium and end up going to the hospital frequently, it may actually prove to be more expensive for you.

Buying a policy

While there are quite a few factors to consider when buying a medical insurance policy, the good news is that you can essentially complete the entire process online.