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Eight tips to buy the best health insurance policy in India

ICICI Securities 20 Jul 2022 0 COMMENT

Introduction

Medical costs in India are on the rise. Medical inflation has often surpassed general insurance. At the same time, lifestyle-related illnesses are also increasing. If you want to keep up with the rising healthcare costs and ensure that you are medically covered, it is imperative to get health insurance.

Additional read: Why is it necessary for you to get Health Insurance?

If you are an employee in a corporate organisation, chances are high that your employer offers you a health insurance. Or, you might have invested in a health policy to get some tax benefits. However, the need for health insurance is far greater than just tax savings and the health coverage that your company provides may not be enough in the long run. If you are planning to get additional health coverage for you and your family, here are eight suggestions that can help you pick the right health insurance plan: 

1. Check the coverage

When choosing a health insurance policy, the first thing you must check is its coverage. Look for a plan covering various ailments, pre and post-hospitalisation expenses, transportation, day treatment, special illnesses that you may be prone to because of family medical history, etc. If you plan on including your family to your policy, then ensure the policy considers all the requirements of your family members. 

2. Compare costs

Based on coverage, you may be able to narrow down to a few policies that suit your requirements. The next step is to compare the price or premiums of different policies. Since there are so many health insurance plans in the market, each with its own price, you can get a good deal if you do your research well. 

3. Pay attention to network hospital coverage 

Different policies have tie-ups with different hospital networks. If you want to get your treatment done from a specific hospital, ensure that the policy covers your preferred hospitals and doctors. It will also be helpful if you look for a health insurance plan with a vast network of hospital tie-ups to ensure that the claim settlement part is not complicated. 

4. Look for lifetime renewability 

Given the inflation in healthcare costs and rising health premium rates, it would be in your favour to opt for a plan that has lifetime renewability. This will ensure that you and your family are covered healthcare-wise for years to come. 

5. Evaluate the claim settlement ratio 

The claim settlement ratio is the total percentage of claims that a health insurer settles out of the claims received. Pick an insurer with a high claim settlement ratio to get assured settlement of your claims. 

6. Keep an eye on the co-payment clause 

Insurers often require the policyholder to pay a specific portion of the hospitalisation or treatment costs. You should check for this clause to ensure that you don’t have shell out a chunky amount out of your own pocket during a medical emergency. 

7. Verify the waiting period for pre-existing illnesses

Before you buy health insurance, make a list of all the pre-existing health conditions that you suffer from. Check whether these are covered under your health policy. Every health coverage plan comes with a waiting period for pre-existing illnesses. It is better to choose a plan with a minimum waiting period to be used sooner in case of an emergency. 

8. Go over the exclusions 

Health insurance plans have certain exclusions that they do not cover. For instance, not all health insurance plans cover expenses related to mental health illnesses and pregnancy. It would be best to go over these exclusions in advance and clarify the same with your provider so that you are not in for a surprise at the time of claim settlement.

Additional read: When is the Right Time to Buy Health Insurance?

Takeaway

Choosing the right policy for yourself and your family members is an important financial and healthcare decision. Spend some time understanding the different policies available in the market, compare policies online, and choose the one that best fits your needs perfectly.

Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.