10 Things to know before buying Health Insurance in India !

What is Health Insurance ?

Health insurance refers to the insurance that covers the cost of your medical and surgical expenses.In simple words, Health insurance covers expenses associated with health care like any illness or injury based on the type of Health Insurance policy that you have taken.

So,Health insurance is one step forward towards safeguarding your own health and the health of your family,in case need arises.

How to Buy Health Insurance ?

Choosing the right health insurance for you and your family is a serious business and in order to avoid any financial crisis during the times of emergency, it is always advisable to choose the health insurance wisely.

Though people often buy health insurances with the aim of saving tax, it should be kept in mind that in times of medical emergency, it is this insurance that will be your saviour.

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Insurance and Investment are two separate but very important parts of one’s financial portfolio.

People often go into debts when a health emergency falls upon them. It does not only leave them in debts, but also rips the future ability to earn. With the increasing healthcare costs, it is feasible to have the right kind of health insurances with a decent health cover.

Don’t consider insurance as a Tax saving option only.

However, before you buy a health insurance policy, there are certain things you must keep in mind, and here they are:

1. Family insurances :

If you are the one to be taking the health insurances for you and your family, make sure you do it for all the family members and do it keeping in mind the age of all the members. While getting an insurance done, it is also important to consider the ailments and family medical history (diabetes, heart problem etc).

Also, there are policies which have a time period to finally claim the plan for already existing medical conditions. Therefore, keep in mind the future aspects of you and your family while getting a health insurance done.

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2. Choose the right amount as sum insured :

The amount of sum insured must be chosen rightly; it refers to the maximum amount of cover for the health expenses within a single policy year. It depends upon your premium as to how much sum is insured.

e.g.If in case someone is hospitalised, you will need a minimum of Rs.5 lakhs and if your insurance doesn’t insure you that much amount, you might have to face troubles.

3. Efficiency in Settling claims :

The claim settling time and claim settlement ratio is yet another factor you must consider for sure while buying insurances. It is only when the settlement ratio is high and the settlement time is faster that you can be rest assured of being assisted with a genuine and good insurance.

Good customer support service and a simplified claim settlement process are an additional advantage that you should be looking for.You can enquire from your friends,relatives or a feedback from the present clients of the company can help you guide your way.

4. Co-payment :

You must decide if or not you need co-payment. In co-payment, the policy holder is supposed to pay a fixed amount which has been pre-defined and the remaining shall be settled by the insurance company. The percentage for co-pay is generally 10-25%. However, if you opt for this option, your premium will be rather lower.

For example, if you choose 20% co-pay in your plan then your Mediclaim premium can be lowered by upto 20%. It must be kept in mind that the hospitalisation cost in case of serious illness is high, and accordingly, the co-payment amount will also be high.

5. Network hospitals :

It is advisable to check the network of hospitals which are covered by the insurance company.It should be considered as an important factor, and you must check the list of hospitals, if in case they are among the ones you already visit.

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Also, in case you travel often, you must definitely check for the hospitals to have your insurance travel with you as well. Cashless facilities, as might be needed, are available in network hospitals only.

6. Maternity benefits :

The costs during pregnancy are high, and therefore, it is important for women to check for certain criteria while buying an insurance policy.

  • The waiting period for claiming maternity charges
  • The sub-limit
  • Whether or not outpatient expenses are covered
  • The exclusions (If any are present)

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7. Exclusions :

More than what is offered by the insurance provider, it is advisable to go through the exclusions of the claim. If in case you or a family member suffers from a medical condition which isn’t covered by the insurance, you might put yourself in trouble.

Therefore, you must consider all the factors while buying a claim, and you must as well check the medical history of family and look for the chronic ailments.

Always make sure that any disease which is present in your family’s medical history is covered by the insurance you are buying.

8. Compare various Mediclaim policies :

It might happen that you do not know very well about mediclaims and about purchasing insurances. Before buying the very first insurance you come across, it is feasible to buy one after comparing various insurance plans with regards to the limits, features and premiums.

If you miss out on the research and comparing part, you will be the victim to buying a rather expensive insurance policy while you could get the same in less money or more in the same amount of money.

9. Upgrading insurance policy :

If in case you want to increase the cover of your claim, you can simply get a top of the additional amount rather than moving on to a new claim all together. In this way, you’d be saving the benefits of the claim you already have, and in addition to it, receive the added benefits.

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10. Consult experts :

The entire process of buying insurance claims and settling for a plan might be complex and at the same time difficult as well. Therefore, if you think you aren’t fit enough to be choosing your health insurance plan, rather consult some expert about the same than simply skipping the idea of buying one.

Your health advisor will help you figure out the right mediclaim policy for you and your family.

Whatever the case may be, while you buy a health insurance or are offered one, it is highly essential to be educated enough about various company policies and consider various factors.

If your Health insurance plan is suitable and apt, it will cover your major health and medical needs (if in case the need arises) and will get you rid off any sort of health related concerns in terms of finance. Therefore, choose your plan wisely and smartly!

Any other points that we missed out and one should be aware of regarding how to buy health insurance or how to choose the correct health insurance plan, feel free to share in the comment section below !

Your feedback shall be much appreciated.

This is a guest post by Santanu, a passionate blogger who shares experiences on insurance, investment, savings, home business ideas and various life hacks through his blog Moneygyaan.com.

Kindly note that,this is only a guest post and not a sponsored one.We have not received any monetary benefit for it.

So,here we have discussed about Health insurance,a small but crucial part of your Financial portfolio. To help you further in your financial planning do have a look at our popular blog posts :

7 Best Short term Investments in India and 

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