Health policies are essential in today’s world as both medical expenses and illness are on the rise. Here’s a list of essential points to keep in mind before you zero down on a policy for yourself and your family.

Insurance policies are not only for tax saving. With the cost of medical expenses reaching the skies, it is inevitable not to have a medical policy. Most employers offer insurance plan, but it renders useless once you change your job. Therefore, it is always advisable to have a separate policy for unforeseen events.

Choosing a medical insurance plan can be complicated. However, knowing what the plan should definitely include can make your job easier.
Here is a list of things to look for in a medical insurance policy.

  1. Individual or Family Floater Plan:
  2. The first step involves choosing the type of plan you want to take up. In most cases, family floater plans are favourable and beneficial. They cover your family members (spouse, children, parents, and in-laws) and you, are comparatively cheaper than individual plans. Also, these plans are great value for money, as the chance of every member falling sick at the same time is very less.
    If any of the family members are aged above 50, you can buy an individual cover for them, which will help cover all health-related claims for that particular senior.

  3. Choosing the Coverage Amount:
  4. Medical expenses are inflating a very higher rate, and health insurance are supposed to help you meet your expenses, whatever may be the concern. When choosing a health policy, always look out for a plan that offers maximum coverage and amount for your health claims.

  5. Co-payment Clause:
  6. Every policy has a clause called the co-payment clause. This means that for every claim made, you will have to bear a certain percentage of the claim amount. For instance, if your co-payment clause mentions 10%, for a claim of Rs.50, 000, you will have to pay Rs.5,000 from your own pockets. It is essential that you understand and agree with this clause before you take the policy.

  7. Hospital Network:
    • Check the list of hospitals included in your policy, do this while keeping your health requirements in mind and see if the particular hospitals facilitate your needs.
    • Almost all policies cover Pre/post hospitalization expenses. This includes costs incurred while hospitalized, and fees followed after the discharge, relating to the ailment only.
    • To be able to make a claim, hospitalization for at least 24 hours is necessary.
    • If you’re married and plan on starting a family, you would also want your plan to cover maternity benefits. Check for the waiting period, sub-limits, and any exclusions that might be included in your maternity cover.

  8. Waiting Period for Pre-existing illnesses:
  9. If you have an existing illness, you will have to serve a waiting period before you can claim the policy amount for your medical expenses. Most policies have a waiting period of 2 to 4 years. It is advisable that you look for a policy with a lower period of waiting.

  10. Lifetime Renewal:
  11. When you grow old, that is when you are more likely to use your health insurance policy. Look for a policy that comes without any age limit for renewal. It is especially essential if you plan on covering your parents in the plan.

  12. Compare Premiums:
  13. A lot of tools online allow you to compare the premium with the benefits you’re going to receive. Comparing premiums will prevent you from paying higher amounts for lesser claims and vice versa.
Although this is not a comprehensive list, these pointers are good enough to get you started. There are a ton of policies available, and picking anything is a tedious job. Do a thorough research and look for policies that benefit you and your family the most.

Learn more about Health Insurance Plans here.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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