Steps to Select Best Health Insurance Plan in India - Make Money Online

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Steps to Select Best Health Insurance Plan in India


The health insurance sector in the past decade has evolved a lot in terms of offerings and structure of the plan. Gone are the days when you had to depend on agents to take care of all your medical insurance needs.

Now, insurance companies offer much more personalised health insurance plans as per the requirement of the family and your financials. Also, the availability of online health insurance plans allows you to purchase plans with minimal assistance.

Given the complex nature of health insurance, you need to know the important factors before making a decision to buy health insurance yourself.


Following is a four-step guide to select the best health insurance plan:
Whom and How to Cover
Coverage Amount
Hospital Room Rent Cap, Treatment-Wise Limits and Co-Pay Clause
Check Network Hospitals and Research Insurer
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First, you need to be clear whether you are going for an individual health insurance plan, family floater plan, or a combination of both. 

An individual plan will only focus on you whereas, a family floater plan will include your entire family (spouse, children, and parents). A family floater plan is suggested when there is no big medical history of the entire family plus the premium per person also happens to be lower compared to taking individual plans.

The cover on the family floater plan is on a shared basis, meaning there is no individual limit and you can utilise the full sum insured as per the requirement. A member can exhaust full coverage of the plan, but other members will then will not able to take the health insurance benefits if required until the next new cycle.

However, if your parents are old, then it is advised to take individual health plans and not buy a family floater plan. This way, you will able to mitigate the risk without increasing the premium amount.

You need to subjectively view on health and medical costs. With each passing day, quality healthcare is becoming more expensive. While thinking about buying a health insurance plan, you need to factor in all your medical requirement and ability to pay premiums. Higher coverage will have higher premium outgo, which can build pressure on your finances. 

While deciding your long term medical requirements, you must take into account your lifestyle. If you lead a healthy lifestyle, then you can have a lesser risk of contracting diseases and vice versa.

Room rent capping clause defines your eligibility to claim expenses only if it falls under this capping. Most insurers cap daily room rent at 1% of the sum insured. In case you exceed the room rent cap, not only are you required to pay the difference in amount but also proportionately deduct the other hospital charges that are linked to room rent.

For ex: If your policy has a coverage of Rs 5. lakhs and allows a room rent cap of Rs. 5000 and you exceed it by Rs 2000, then you are eligible for only 71% of the total claim even if you have not surpassed the coverage limit.

You should also compare the treatment-wise limits of all common treatments such as cardiac treatments, daycare treatments, etc. Such limits will cap your claim and if you exceed the amount, then you need to pay the difference.

While taking the health insurance policy, always be aware of the co-pay clause, which means you have to pay a certain percentage of the total bill amount in event of a claim.

Always check the insurer's list of network hospitals where the insurer has an agreement with the hospital for cashless treatments. Always look for credible hospitals in your area while taking the health insurance policy.

Research the insurer in terms of claims settlement ratio, policy wordings, and past service records. If you frequently travel abroad, then your policy supports treatments abroad or not.

A health insurance plan is a must and you should know and understand the details before buying one to make the best out of it.
Steps to Select Best Health Insurance Plan in India Steps to Select Best Health Insurance Plan in India Reviewed by RAWAT on 4:30 AM Rating: 5