Personal Finance

7 Tips to select the right Health Insurance Plan

Considering the rise in the number of health problems at a young age in the current environment, it is very crucial to buy an adequate health insurance policy for you and your loved ones. However, possessing a policy doesn’t offer any benefits unless you fall ill, health insurance is, unfortunately, the most neglected type of insurance in India. While getting sick is not something you can plan for, it is important to save money and be prepared for it well in advance. 

We all wish to purchase a health insurance strategy that offers the highest possible level of protection for our loved ones in the event of an emergency. But it can be challenging to choose the best one given the variety of health insurance options available.

Here are some helpful tips to guide you in selecting the ideal family health insurance plan.

  1. High claim settlement Ratio: Claim settlement ratio is defined as the percentage of claims settled by the insurance company relative to all claims received. The higher the claim settlement ratio, the higher the capability of the company to settle the claims on time. It is advisable to pick an insurance service with a high ratio of claims settled.
  1. Choose the right policy Coverage: One should select a policy that not only secures you but also each member of your family against a wide variety of medical issues and also offers benefits like pre and post-hospitalization, transportation, and illnesses that one may likely contract given family’s medical history, etc. In order to choose a plan, one should take into account one’s requirements, compare plans based on benefits and pricing, and the amount of premium that needs to be paid every year.
  1. Look for affordable and flexible plans: Purchasing a health plan that satisfies your needs is important, but it’s also crucial that it fits within your budget. It is a smart move to purchase an affordable health insurance plan up front to make sure you are properly insured and the costs are reasonable. Make sure you can review your plan, add a new family member, or can extend coverage as necessary when choosing a family health plan
  1. Select a plan with Lifetime Renewability: The majority of people forget to take into consideration whether the plan offers lifetime renewability or not. It is advisable to choose a plan with lifetime renewability as it ensures you continue with the same policy over the years and helps you to avoid the hassle of purchasing a new policy after a particular age.
  1. Study the co-payment clause: It is important to know the co-payment clause for the insurance policy before buying the plan as the co-payment amount is the percentage of the total amount which is paid from the pocket of the insurer and the remaining portion is paid by the insurance company. For example, if a policy has a co-pay clause of 10%, this means for a total claim of Rs. 100, the insurer is obliged to pay Rs. 10 from his pocket while the rest of Rs. 90 is to be paid by the insurer.
  1. Network Hospital coverage: One should always look for an insurance company with a large network of hospitals in the country. It is advisable to verify that the hospitals and doctors of one’s preference are part of the hospital network of the health plans that you are planning to buy.
  1. Know the waiting period clause: Every health insurance policy has its own terms and restrictions that pertain to pre-existing conditions. For most of the policies, the waiting period time ranges from 2 to 4 years. Before purchasing a health plan, it is important to verify the time period after which pre-existing conditions will be covered, and pick a plan with a short waiting period.

Various Health Insurance policies in India

These are some of the health insurance policies that one may consider as per their needs and requirements.

Conclusion: It is advisable for everyone to purchase a health insurance plan that provides our loved ones with the most protection in the event of a crisis. One should assess their requirements and make an investment in an appropriate health plan as per their needs. 

Tavaga Invest

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