How To Pick The Best Health Insurance Plan?

It is essential to consider several factors while buying the best Health Insurance plan for you or your family. But doing so can be tricky, especially for new buyers, considering the plethora of Health Insurance options available in the market.However, knowing which features of a Health Insurance plan to look at can tremendously cut the time it takes to do your research. Even if you have an agent or broker to assist you, it’s always better to be informed beforehand. The pointers below will assist you in your endeavours of picking the best Health Insurance policy. Also read: Know the advantages and disadvantages of Health plans

These are a few things to carefully consider when buying a Health Insurance policy.

Figure out which Health Insurance plan suits your needs

Whether you are a 20-year-old embarking on your financial journey, a married individual with children, or a retiree enjoying your golden years, Health Insurance plans can assist at every stage of life. However, purchasing the first policy you come across is not the ideal approach to securing Health Insurance. It is crucial to familiarise yourself with the different types of plans available and choose the one that best suits your needs.For instance, if you are married and your spouse does not contribute to the household income, you may want to opt for a Family Health Insurance plan instead of buying two separate Individual Health Insurance plans. This way, you and your spouse will be covered under a single policy, making it a cost-effective option.Similarly, if your parents are above 60 years old, a Senior Citizen Health Insurance plan might be more suitable than a Family Health Insurance plan. It can provide comprehensive benefits at a lower cost compared to standard options.Knowing about the various plans available will put you in a powerful position when choosing. That is why it is the first thing you must do before buying Health Insurance.

Pick the right coverage amount

The main purpose of a Health Insurance plan is to decrease the financial burden caused by medical expenses. However, it is crucial to select the appropriate coverage and determine the right amount to ensure a suitable choice. Policies offering a comprehensive range of benefits, including coverage for pre-hospitalisation and post-hospitalisation expenses , ambulance charges, doctor consultation fees, and more, provide greater value than other policies. Therefore, try to choose plans that cater to a wide range of your medical requirementsAlso, ensure that the plan you choose has an adequate coverage amount. The coverage amount, also known as the sum insured, represents the maximum compensation you can claim in case of medical emergencies. Opting for a plan with an excessively high coverage amount may become a financial liability due to higher premiums. Conversely, a plan with insufficient coverage might not adequately cover your medical expenses. Generally, it is recommended to choose an amount that is at least 50% of your annual income. For example, if you earn ₹12 lakhs per annum, your sum insured should be at least ₹6 lakhs.

Be wary of the waiting period

Simply put, the waiting period refers to the time you need to wait before receiving the benefits of your policy. During the waiting period, you cannot make any claims unless in the case of accidental hospitalisation. Nowadays, almost all Health Insurance plans come with a waiting period. The same can last anywhere between a month to four years, depending on the severity of your health condition. Usually, the waiting period is higher if the insured has certain pre-existing diseases (medical illness or injury diagnosed 48 months before buying Health Insurance).When comparing the best Health Insurance plans, try looking for policies with minimal waiting periods. This will allow you to receive policy benefits as early as possible.

Check the co-payment clause

Several insurance providers have introduced a co-payment clause in their Health Insurance products to reduce their financial liability. Under this clause, the policyholder agrees to pay a fraction of the hospital bill from their pocket while the insurer covers the remaining amount. For example, if you file a claim for ₹2 lakhs and the co-payment clause is set at 10%, you will have to pay ₹20,000 towards your medical expenses, while the insurance company will pay the remaining ₹80,000.Usually, the co-payment clause is preferred by individuals looking to reduce their premium costs. However, assessing whether you can afford to pay a portion of the bill during a claim is essential before opting for this clause. If your medical bill turns out to be higher than expected, you may end up paying more than you can afford. Therefore, looking for a policy without a co-payment clause or the lowest possible one is best, even if it means paying a slightly higher premium.

Consider the network hospitals

During emergencies, arranging funds for your treatment can be challenging. However, this concern is alleviated through cashless facilities offered by your insurer at network hospitals.Network hospitals are healthcare institutions that have a tie-up with your insurance provider. You are entitled to cashless claim facilities if you seek treatment at a network hospital. Under this arrangement, your insurer settles your medical bill directly with the hospital, eliminating the need for reimbursement from your pocketWhen selecting Health Insurance plans, choosing an insurer with an extensive list of network hospitals is advisable. This ensures a greater chance of availing the cashless claim facility. You can typically find the list of network hospitals within your policy documents or on your insurer's website.

Choose the riders carefully

Riders, also known as add-ons, are additional coverage options that enhance the scope of your policy in exchange for higher premiums. These riders are offered at the time of purchasing Health Insurance, and insurers provide various options to choose from. For instance, you can opt for a critical illness rider if your family has a history of cancer, which will cover future expenses related to cancer treatments.

Opt for plans with lifetime renewability

Some Health Insurance plans offer a valuable feature called lifetime renewability. This allows you to continue availing the benefits of your existing policy without qualifying for a new one. When selecting the best Health Insurance policy, prioritise those that offer lifetime renewability. This way, you don't have to worry about age restrictions or exclusions that may apply when purchasing a new Health Insurance plan.

Choose an insurer with a high claim settlement ratio

Selecting the right insurer is equally important as choosing the right Health Insurance plan for your needs. Some insurers may provide a better customer experience and a smoother claim process. One way to assess the credibility of an insurer is by gauging their Claim Settlement Ratio (CSR) for the plan you intend to purchase. The CSR indicates the turnaround time for claim settlement and the efficiency of claim procedures. A higher CSR ratio increases the likelihood of your claim being approved. Also read: Why you should opt for online Health Insurance

• Do not simply buy the first Health Insurance plan you come across. Understand the different types of plans available, assess your needs, and then make an informed decision.
• Try looking for a balance between the premium and coverage amount to appropriately manage your finances.
• Some Health Insurance plans may come with a lengthy waiting period. Choose one in which you must wait the least time to make claims.
• Assess the co-pay clause before buying Health Insurance. If you are worried that you might have to make substantial payments even after having an appropriate plan, opt out of the co-pay clause.
• Riders enhance the scope of your policy coverage. Choose the right riders to adequately match your needs.
• Lifetime renewability can be an important feature in your Health Insurance plan.
• Opt for insurers with a relatively higher Claim Settlement Ratio, as it can increase the chances of your claim getting approved.

Also read: Points you should note while renewing your Health Insurance policy