India started taking health insurance schemes seriously only after facing the wrath of the COVID-19 pandemic. Today, people understand the importance of health insurance in protecting their finances from medical emergencies and rising healthcare costs. The market is saturated with health insurance plans, making it difficult for consumers to decide which one is best for them. One of the biggest health insurance misconceptions is that having a policy with a low premium automatically translates to a good health insurance policy. However, this is only sometimes the case, as the coverage offered by the policy, the waiting period, out-of-pocket expenses, and other factors should also be considered before making a decision. Choosing the appropriate health insurance plan is required to have protection when needed, so you must invest time in buying one. Here’s a step-by-step guide to help you find the right health insurance plan:
Determine your needs and the coverage amount
Before you start exploring health insurance plans, you should figure out your primary requirements and the coverage amount you would need. Think about whether you want a policy to help with maternity benefits, pre-existing illnesses, or the like. When trying to determine the coverage amount, it’s ideal to choose one that’s six times your monthly salary. Again, this amount depends on your needs.
Choose your preferred health insurance policy type
When choosing your preferred type of health insurance plan, factors like whether you want a policy that covers only you or both you and your family play a crucial role. When looking at health insurance plans for your family, you must consider all the members. For instance, if you have senior parents, a senior citizen health insurance plan would work better for them as it is tailor-made to meet the needs of aged individuals. List down the best health insurance plans available from multiple insurers.
Compare different insurance plans based on benefits and network hospitals
Compare various health insurance plans using a third-party insurance aggregator website or by noting down crucial features of your shortlisted policies. Also, compare the premium, benefits, network hospitals, and the like. Since health needs vary, read through the benefits offered by different plans. Check for benefits like mental healthcare, premium waiver, physical therapy, cumulative bonus booster, and the like.
Additionally, network hospitals are essential to help make hospitalisation easy and more cost-effective when the need arises. If you prefer specific hospitals, find out whether they are a part of the insurer network by asking the hospital officials or the insurance company. If you don’t have any such preferences, opt for plans with a vast network of hospitals in India and abroad to have more choices.
Compare waiting periods and out-of-pocket expenses
Most health insurance plans come with a waiting period, which may differ by insurer. During this period, you can’t make claims. Try to get the policy with the shortest waiting period. Also, your health insurance plan doesn’t cover every medical expense.
When comparing plans, you must check their copayments, sub-limits, exclusions, and the like. A copayment clause in an insurance plan suggests the insurer will cover a part of certain medical expenses, and you must pay the rest. The ratio varies by policy. Also, consider the sub-limits of the policy, which are caps on particular facilities/procedures/illnesses. For instance, there might be a limit on room rent, cataract lens replacement surgery for each eye, and the like. Policy exclusions are another crucial factor to consider.
Check for options to enhance your coverage amount
Since healthcare costs are on the rise, it’s necessary to ensure your coverage is adequate for now and the future. Ergo, it’s ideal to have a health insurance policy allowing you to increase the coverage amount through restoration and a no claim bonus (NCB). Restoration is a benefit through which your insurer gives you an additional amount for treatment if you exhaust your existing coverage and require more. You don’t have to pay anything for this.
Insurance companies reward policyholders in the form of an NCB for every claim-free year by decreasing their premiums or increasing their coverage. Over the years, policyholders can increase their coverage amount up to 50% at the same insurance premium.
While the premium is essential when looking at health insurance plans, it’s not the only factor you should consider. A low premium doesn’t necessarily mean a good health insurance policy. Look at the factors mentioned above, too, before choosing a health insurance plan to have the best and maximum coverage.
