Looking for the Best Health Insurance Policy? Here Are 7 Factors to Consider

By- Yashvi Jain

Even when one has reliable savings, one medical emergency is enough to make it inadequate. That's why buying health insurance is indispensable these days. With expensive treatment costs and long medical bills, health insurance can be a true savior.

But finding the best health insurance policy comes with its own challenges – especially if you are a first-time buyer. There are a million questions, how much coverage to go for, what are the benefits to look for, and so on.

Thus, to make it all easier for you, here's an article you can depend on:

7 Factors to Consider Before Selecting the Best Health Insurance Policy

1. Choosing Adequate Cover

Medical expenses are not only increasing but getting expensive.  If you have a doctor's prescription fee priced at INR 500 today, it won't be surprising for it to shoot to INR 3000-5000 along the years.

The same goes for hospital fees, ambulance charges – all medical expenses. Thus, it's essential to choose health insurance plans in India that meets your future medical requirements and costs.

At the same time, it would be wiser to take the family's medical history in account. As some diseases can be passed down by the genes, diagnosis is a possibility. In case the disease is not covered in a basic health insurance policy, consider getting riders.

2. Affordable Premiums

The idea of choosing the best health insurance policy with the highest coverage does sound appealing, but it's not worth it if the health insurance plan comes with expensive premiums. So, keep your budget in mind. You wouldn't want expensive premiums to affect your financial strength. Aim for a lower health insurance cover if budget is a constraint.

 2. Cashless Hospitalization

Cashless hospitalization is a feature provided by health insurance plans in India that spares you from the obligation of paying hospital bills first. In a standard health insurance policy, the policyholder pays the hospital bill first, and then the insurer fully or partially reimburses later.

Ergo, go for the best health insurance company that provides cashless hospitalization. Ensure that your preferred hospitals are in the insurer's partnered hospitals to utilize this facility.

3. Claim Settlement Ratio

No one likes making a hundred calls to file a claim with the health insurance company – especially when your family is dealing with a medical emergency. That's why going for the best health insurance company with higher claim settlement and streamlined claiming process is a good idea. A claim settlement ratio indicates the capability of the insurer to settle the filed insurance claims.

Before buying a health insurance plan in India, always ensure that the insurance company is not only reliable, but financially sound as well; all of which can be depicted by a high claim settlement ratio.

4. Co-Payments and Sub-Limits

Almost all the best health insurance companies now have co-payments and sub-limit clauses.

A co-payment clause promises to pay only a proportion of hospital bills. The remaining has to be settled by the insured.

Sub-limits on the other hand are the caps imposed on the amount you are assured, under certain conditions. For instance, if your health insurance policy places a sub-limit of 50 % on your shoulder surgery, it means you cannot consume more than 50% of your health insurance coverage for the surgery.  The exceeding amount should be paid by the policyholder.

5. Waiting Period

A waiting period is the tenure during which you cannot file a health insurance claim. A waiting period is generally applicable for new or renewed policies or pre-existing diseases. The waiting period depends on the insurance company. It is suggested that you pick insurance companies that have a shorter waiting period.

6. Inclusions and Exclusions

Basic health insurance plans in India do not provide an extensive cover for critical illnesses and cover. Additionally, most health insurance policies do not provide insurance for non-essential surgeries and treatments, such as cosmetic surgeries and smile correction/dental treatments.

That said, even when insurance companies cover basic medical expenses, and hospital bills, there are some additional benefits such as hospital room rent, ambulance charges and free medical benefits provided by the best health insurance policies.

Therefore, when you are doing a health insurance comparison, look for inclusions and exclusions. And make your decision accordingly.

Health insurance is a must-have today. Choosing a health insurance policy is not difficult, although it does require some research.  In case, you haven't bought it already, and are considering buying one, look for the factors that have been mentioned above. At the same time, follow the general advice before you purchase health insurance plans in India.