5 Essential Factors To Consider When Selecting The Best Health Insurance Policy

With so many options for health insurance plans, which one is right for you? Do you simply choose the least expensive one or the one with the most extensive coverage? While comparing the best health insurance policy, you must focus on finding a plan that meets your healthcare needs and accommodates your budget. You can always purchase additional riders to increase policy coverage and upgrade your plan during renewal. 

In this blog, we present the crucial factors to consider when selecting the best insurance policy. 

5 Factors to Consider For Buying the Best Health Insurance Policy

Illness can strike at any age, and it is vital to be prepared with the right health insurance plan. As a general rule of thumb, you must look for health insurance with at least Rs. 5 lakh coverage if you are single and Rs. 10 lakh coverage if you are protecting your family. Let’s explore the essential factors to consider before purchasing your health insurance. 

#1 Age and Healthcare Needs

Insurance policies are more affordable when you buy at a young age. Your policy premium is determined based on your health risk. As young people are generally fit and healthy, you can secure a comprehensive health insurance plan for a lower premium. Insurers charge a higher premium for policyholders over 30, mainly because of higher health risks. If you have pre-existing diseases (PEDs) like diabetes or hypertension, you must declare it at the time of purchasing health insurance and look for plans with shorter waiting periods for PEDs. 

#2 Type of Plan

Individual health insurance is best suited for singles, but when you want to protect your family, consider buying a family health insurance plan. Under the same policy, you can protect everyone in your family, and they can share the sum assured. It is more cost-effective to buy single-family insurance than individual insurance for each family member. You can protect your elderly parents with senior citizen health insurance, which offers extensive coverage for a higher premium for people over 60. 

#3 Coverage Offered

Health insurance plans vary in terms of coverage offered. Basic mediclaim plans cover hospitalisation expenses up to the sum insured, including treatment costs during a hospital stay. Comprehensive plans offer broader coverage, such as out-patient treatments, diagnostic tests, doctor consultations, rehabilitation care, ambulance charges, and more. Those with chronic health conditions or pre-existing diseases can derive more value from their comprehensive insurance plan. Alternatively, you can buy basic health insurance and add-on riders to extend coverage and reduce waiting times. 

#4 Your Budget

Health insurance is valuable only if you continue to stay covered under the policy. Remember, you must be prepared to pay insurance premiums to remain well protected for a lifetime. Policies with extensive coverage cost more but also reduce out-of-pocket expenses during medical emergencies. Cashless policies allow you to enter any facility within the hospital network and get expensive treatments without spending a penny, provided you have opted for higher coverage and a higher sum insured. As your income increases, you can increase the sum insured, opt for more extensive coverage, or purchase add-on riders for complete coverage. 

#5 Policy Inclusions and Exclusions

Not all health insurance plans are designed the same. The inclusions and exclusions vary based on the type of policy and insurer. Just because you have an expensive health insurance policy doesn’t mean every healthcare expense will be covered. You cannot claim for medical conditions specifically excluded from the policy. Understand what is covered by the policy and what is not to make the right choice. 

Takeaway

The right way to choose the best health insurance policy is to compare multiple plans to find the best plan that fits your needs. Multiple factors such as healthcare needs, type of plan, extent of coverage, and budget must be considered to ensure comprehensive protection and peace of mind.