How to choose the best health insurance plan for you?

3 minutes, 18 seconds Read
Health insurance is important, and we all know that, but purchasing the best one that suits your needs is also as important. In this article, we would help you understand how to choose the best health insurance plan for yourselves.

What is Health Insurance?
Health insurance can be understood as a shield that would protect you in case of a medical emergency. Health insurance covers your medical expenses in case of an illness, accident, or hospitalization. It can be understood as a contract between an insurer and the insured, under this contract the insurer would have to bear medical expenses for the amount stated in the contract. This is against the premium that has been paid by the insured person. There are two basic types of health insurance-

  • Cashless treatment- where you don’t have to pay a single dime and is taken care of by the insurance company.
  • Reimbursement- under this you pay your medical expenses and later they would provide reimbursement.

  • How to choose the best health insurance plan for you –
    1. Choose the adequate sum insured – You would need to understand what the right coverage for you will be. If you are unaware of the right amount required for your family, then the first factor you need to consider is the number of family members. If you have everyone below 60 and are in good health then you can buy family coverage, worth 3-5 lakhs. And if you have parents above the age of 60 years of age, then it would be better to purchase an individual cover for them. Nowadays good health care is expensive and you would pay anywhere between 3-5 lakhs for a normal health surgery as well.

    2. Choose the right coverage type – Choosing the right coverage type is also very necessary to get the best plan for you. If everyone in the family is in good health then you can purchase a family floater instead of purchasing an individual policy for everyone. This would help you save a premium as well. Also, if your parents are old it would be better to purchase an individual plan for them as they are more prone to diseases.

    3. Check the maximum age renewability – Under renewability, you can renew your policy. Some companies have a renewability limit till 65 years of age only. It would be better if you find a policy with lifetime renewability. This is because as you grow in age buying a new policy would be much more expensive than renewing your existing one.

    4. Co-payment clause – Under this, you would have to co-pay medical expenses along with the insurance company. For example, if your contract has a predefined 10% co-payment clause then you would have to pay 10% of the total medical cost.

    5. Claim settlement process and settlement ratio – When looking for an insurer, it would be better to buy one with a higher claim settlement ratio. What good a policy would do if you don’t get a claim settlement? Also, take a look at reviews about the claim settlement process. It would be better to choose an insurer with cashless claim support. Choosing an insurer with a smoother claim process would be better.

    6. Network of hospitals and premium payable – One needs to take a look at how many hospitals are associated with the insurer as I would help you get a smooth claim process. Also, once you have decided on the insurer and insurance plan compare the rate of interest to that of other insurers. And choose the best option that you get.

    If you take a look at all these points you would surely be able to find the best insurance policy for you. Also, single insurers offer multiple plans and make sure to read all related documents clearly.

    In closing – We have in this article how you could choose the best insurance policy to meet your needs. And remember to take tax exemption on the amount paid as premium.

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