Staying healthy is important in our lives, and it’s vital to have a good healthcare plan in place to ensure proper medical attention, necessary treatments, and medications.

One of the most popular healthcare plans that people opt for is an annual health contract, which is a comprehensive policy that covers various medical needs of a person. However, before signing the contract, it’s crucial to understand the waiting periods and exceptions that come with it.

What is an Annual Health Contract?

An annual health contract is a comprehensive health insurance policy that covers the costs of several medical services such as hospitalization, diagnostic tests, surgeries, consultations, and preventive check-ups.

This contract is signed between an individual and an insurer, following the payment of a premium. The main advantage of an annual health contract is that it ensures healthcare coverage throughout the year, which can be renewed after that period is over.

: Understanding the Waiting Periods of Annual Health Contracts

Waiting periods are the intervals between signing the annual health contract and when the benefits become applicable. During the waiting period, no claim for insurance can be made, and it varies depending on the coverage and the insurer.

The waiting periods for different medical services may have different lengths, and it’s essential to check with the insurer for the same. However, the following are the general waiting periods for most annual health contracts-.

: Various Waiting Periods

Hospitalization: Mostly 30 days waiting period is applied for hospitalization. Any kind of hospitalization claim will be rejected until this waiting period is completed.

Pre-existing conditions: Pre-existing conditions are medical conditions inherited before the onset of the policy and are not covered immediately after signing the contract.

The waiting period for pre-existing conditions is more extended, and it depends on the insurer, but it usually varies from 1 to 4 years.

Maternity Benefits: Many annual health contracts offer maternity benefits, but like any other service, it has a specific waiting period.

The waiting periods for maternity benefits usually range from 9 to 36 months, and this condition is only applicable to those who were not pregnant during the policy’s commencement.

Dental and Eye Care: Usually, several medical insurers offer dental and eye care services separately with a specific waiting period of 1-2 weeks. This package includes a dental check-up or root canal surgery, cataract surgery or LASIK eye care.

: Exceptions to Annual Health Contracts

Like any other insurance policy, annual health contracts also come with a set of exceptions that are not covered under the policy.

It’s essential to read through the policy and understand the exceptions involved before signing the contract, as it may lead to an unexpected financial burden. The following are the typical exceptions in most annual health contracts-.

: Common Exceptions

Non-Medical Expenditures: Any non-medical expenditure is not covered under the annual health policy. For example, expenses incurred on phone bills, food charges, and travel expenses for the caregiver, are not included in the insurance policy.

Cosmetic Surgeries: Any cosmetic surgeries that are performed for enhancing one’s appearance, such as hair transplant or liposuction, are not covered under annual health contracts.

These treatments are considered elective procedures and are not medically necessary, and thus are excluded from the policy.

Sexually Transmitted Diseases: Treatment for sexually transmitted diseases, such as HIV, is not covered under annual health contracts.

Weight Control Programs: Weight control programs such as bariatric surgery, gastric banding, or liposuction for cosmetic purposes, are not covered under annual health contracts.

: Conclusion

An annual health contract is an investment for your health, and it’s essential to understand what’s included and excluded.

A clear understanding of waiting periods and exceptions can prevent dissatisfaction later, and therefore it’s crucial to ask as many questions as possible. Remember to read through the policy and clarify any doubts you may have to avoid any surprises in the future.