5 Things You Must Know While Buying Health Insurance Plans in India

Are you aware of all you need to know about health insurance plans? Let’s get you up to speed on what you may have missed.

Buying a health insurance plan is one of the most responsible things you could do in today’s stressful times. But it is a process fraught with some degree of risk, especially if you are not conversant with essential aspects such as –

#1 All medical insurance plans work with inclusions and exclusions.

You might have chosen the best health insurance plan in India. But the policy’s fine print will reveal the limits and exclusions entailed in the policy. No health insurance plan serves each and every medical eventuality, and even the most comprehensive health insurance policy will have sub-limits for treatments, restrictions on critical illnesses covered under the plan, and other provisos for filing claims. If you are likely to get admitted to a high-end hospital with a private room, then a policy with a daily room rent limit may not be ideal.

#2 The premium may include features you don’t need.

The premium paid on the health insurance plan includes a diverse range of services, such as getting a second opinion for a critical illness, post-operative benefits, daily cash allowance, etc. However, the more the benefits included in the medical insurance policy, the more expensive the premium becomes. Effectively, you would pay higher premiums for benefits that you would not need.

#3 A check on the insurer’s settlement record is important.

Apart from choosing the best health insurance plan in India, it is important to exercise due diligence when checking the insurance provider’s claim settlement record and whether they routinely hike the premiums every few years, among other factors. Flag down a provider with a low claim settlement record, as also one with a poor ability to pay against the claim. Choose providers with deep expertise in the field, and who have a wide range of health insurance policies to choose from.

#4 Cashless medical insurance can be better in some cases.

Some insurance providers have a low solvency margin which results in financial loss for the policyholder. If you are unsure about whether the insurer will pay the full amount against the claim, you are better off taking a cashless medical insurance plan. The cashless plan can enable you to seek immediate treatment at a good network hospital, and you are also spared the hassle of collating documents before admission and following up with the insurer about your policy money.

#5 The sum insured depends on your city of residence.

Not many people are aware that the cost of medical treatment varies from place to place in India – and so must the sum insured in the policy. Choose a sum insured that is commensurate with the medical costs of treatment in your city of residence. Generally, the sum insured for customers in metro cities is higher than for those living in Tier II cities.