how to select health insurance policy
Health Insurance

How to Choose Health Insurance Policy in India?

Health insurance is a policy that provides financial support to people if and when they are diagnosed with a medical condition as per the terms and conditions of the policy. A health insurance policy offers coverage for the expenses incurred due to all various aspects of the treatment, including diagnostic test, hospitalisation, and medicines.

As you may know, medical treatments nowadays can put considerable of financial burden on your pocket, which makes planning for any unanticipated eventuality ahead of time mandatory. You must be aware that the advances in medical sciences have made treatments for many conditions, which were non-treatable just years ago, possible to a great extent. Nevertheless, the expenses incurred from these treatments continue to be high. You must have health insurance to avoid any burden on your and your family’s finances. A health insurance plan offers you and your family the necessary financial support.

Tips to choose a health insurance plan

The overall process of choosing the health insurance policy can prove be overwhelming for some. Moreover, the broad range of health insurance plans available in the market can even cause you to become confused instead of helping you make an informed decision. Hence, it becomes critical for you to research what benefits you can get from the policy of your choice and compare the policy and its benefits against other options available in the market.

Moreover, to avoid any puzzlements, you can look at some of the policy parameter to select a health insurance plan with optimal coverage and benefits for you. These parameters can make the entire process of policy selection easy for you while helping to avoid any confusion that may result from plethora of available choices. Here is a list of some tips to choose a health insurance plan.

1. Sum insured

The highest amount that you can get cover for against the premiums paid by you is termed as sum insured. To ensure that all and your medical needs are taken care of and your treatment costs are covered entirely by your policy, you should consider a health insurance plan that provides you with the maximum possible coverage.

2. Health insurance coverage

Different health insurance providers may offer coverage for different aspects of treatment for various conditions, such as critical illnesses and day-care procedures. You should consider your family history and ensure that any condition that you have a high chance of developing in the future is also covered in your health insurance. You should also look at other coverage benefits offered by the policy before purchasing it.

3. Waiting period

The time for which you have to wait before a raise claim on your policy is commonly known as the waiting period. This waiting period differs with your plan and insurance provider. Some insurance companies offer a waiting period of zero days, whereas others may allow you to request a claim after up to four years of you buying the policy. You should consider the optimum waiting period for you before finalising your health insurance plan.

4. Co-payment clause

Some policies can come with a co-payment clause, under which you are expected to pay a predetermined part of the sum insured out of your own pocket. Most health insurance plans ask the senior citizens to opt for this clause so as to reduce the amount they may have to pay to the insurance beneficiary. You can opt for a plan that offers a no co-payment clause.

5. Pre-existing disease coverage

You must consider any pre-exiting disease or condition that you have before purchasing a policy. Most policies that offer coverage for a pre-existing condition come with a waiting period of 1 to 4 years, after which you can request a claim for your pre-existing condition. Depending on the severity of your condition, you can opt for a plan that covers your conditions after the completion of a time desirable to you.

6. Plan flexibility

Many health insurance plans offer the option to add family members to one policy at an increased premium rate. When expecting a new arrival in the family, you should find out whether your insurance plan allows addition of new family member and immediate cover for them without a waiting period. You should be able to add any new family member whenever required; this allows you to ensure that your loved one will be as secured as you in a medical event.

7. Sub-limit help

A health insurance policy covers for the cost of hospitalisation, including the rent for your room and treatment expenses. Some insurance providers set a sun-limit of various aspects of treatments such as room rent. You can compare different policies to find a plan with a sub-limit on the hospital room rent that suits your needs the best. When you take this factor into account, you ensure that you will be comfortable throughout your hospital stay.

8. Tax benefits

While pondering over the question ‘how to select health insurance policy,’ you can consider the tax benefits offered by the policy as well. You can claim tax deduction for the premiums that you may pay for your policy. The tax benefit amounts differ between ₹ 25,000 and ₹ 75,000, depending on the type of your health insurance policy. For a family floater plan, if the age of dependent parents is more than 60 years, you can claim for a tax benefit of up to ₹ 50,000 rupees annually. In health insurance for parents aged more than 75 years, a tax benefit of up to ₹ 75,000 can be availed annually. For individual health insurance bought for a person below the age of 60 years, a tax benefit of up to ₹ 25,000 can be availed.

Understanding health insurance policy

A health insurance plan is a tool curated specifically with a focus on your medical needs. This plan allows you to pay for your medical expenses without burning a hole in your pocket. Moreover, this plan provides coverage for the expenses incurred due to various non-medical aspects of your treatment such as ambulance service and hospital room rent to ensure that you stay in a stress-free environment throughout your recovery journey.

While wondering about ‘how to choose the best health insurance policy’, you must pay close attention to the terms and condition of the policy. Doing so can make you aware of various policy aspects such as the waiting period of health insurance, co-payment clause, and sub-limit.


How to choose health insurance policy?

You must consider the coverage offered by the policy, inclusions and exclusions of the plan, along with other benefits offered by your insurance provider to select the best health insurance for you and your family.

How must sum insured should I get for my insurance?

The sum insured for your insurance policy should be equivalent to half of your annual income. This amount ensures that your medical expenses can be covered in a medical emergency.

How to choose Mediclaim policy?

The coverage offered by your healthcare provider must be reviewed in detail before purchasing a Mediclaim policy. In addition, you should also consider the various benefits and exclusions of the policy to make an informed decision.

What is waiting period in health insurance?

Waiting period is the minimum time that you have go without raising a claim after purchasing a healthcare plan. This period can be anywhere between 1 and 4 years and differs with the insurance provider.

When should I buy health insurance?

You should consider purchasing a health insurance plan when you are your, preferably in your 20s. Buying this plan early allows you to enjoy the benefits of low premiums and no-claim bonus every year for which you do not raise a claim.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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