Confused About Which Health Insurance to Buy? Here are 5 Tips that Help to Choose the Right One

The need for health insurance has multiplied rapidly in the last few years. With an exponential rise in critical illnesses and a devastating pandemic wave, people have started to look at health insurance in a new light. Considered by many as a mere formality in the past, this insurance cover has saved lives, made lives better, and ensured that the burden of hospital bills does not bog you down. 

The renewed importance of health insurance has made people conscious about their choices of health insurance. Along with awareness, come expectations and this often confuses. 

Also read: Mistakes to Avoid When Purchasing a Life Insurance Policy Online 

Here are a Few Tips for Buying the Best Health Insurance Policy:

1. Choose the Right Insurance Plan:

With the rise of so many insurers offering extensive coverages, you have to be wise to choose the right type of health insurance policy. Choose a type of insurance policy that depends on factors like age and medical condition. Under the umbrella of Health insurance, two main distinctions are explained below with its usages and benefits.  

Here is a clear distinction between individual & family health insurance: 

Individual Health InsuranceFamily Health Insurance
Individual health insurance is when only one person is covered under every policy. The health insurance sum insured is dedicated to one person.A family health insurance is a type of health insurance plan wherein you and your family members share one plan. This means the sum insured would be shared by all members covered under this policy, 
Extensive coverage is provided since every individual has their sum insured. This is better for an individual with advanced age who may need more medical attention. Premiums are cost-effective, as the premium is a one-time premium for all family members.
The disadvantage of individual health insurance is that you will have to pay a much higher premium to cover all the family members individually if you plan to get your family insured. One of the main disadvantages of a family floater plan is that the sum insured may not be enough for all family members.
Individual health insurance is recommended for bigger families or those with senior parents.A family health insurance would work well for a young couple or a nuclear family.

2. Analyse Claim Settlement Ratios

This is the ratio that determines the percentage of claims that have been settled by the insurer in a year. The higher this ratio is the better it is as it increases the credibility of the insurer. A health claim settlement ratio above 85% is generally considered very good and anywhere between 80% to 85% is considered acceptable.  

Also read: Features you Must Know About Health Insurance for Individuals. 

3. Assess Your Needs Carefully

Health insurance should be bought after careful consideration. This insurance comes in handy in a crisis and if you realize you’ve bought the wrong product at that time, it would be too late. 

  • Premium – Decide your budget and focus on the premium that you can afford and what features come along with it. The best to determine your premium amount is by using a health insurance calculator, as it helps with a smoother calculation process.  
  • Features – The features of a health insurance policy are the ones that you are concerned with the most. Identify which features are suitable for your situation. 
  • Waiting period – Most critical illnesses have a waiting period. Compare the waiting period and see which option fits you best. 
  • Benefits – Insurers often offer different benefits like a no-claim bonus along with the policy, with a list of other benefits added to it. 
  • Settlement process – The ease with which each claim can be settled should also be checked. Simpler processes often take less time for the claim to be settled. 

Also read: Tips to Avail Benefits from the Best Health Insurance Plan

4. The Reputation of the Insurer Matters 

The reputation of the insurer helps to identify past customers and check for reviews. A well-known brand will have better customer service and customer-centric processes. Most reputed insurers offer 24 hours support and they are easier to get in touch with if there is an issue. A reputed insurance company translates to tie-ups with better hospitals and personal attention by the company agent. 

5. Availability of Hospitalization Coverages

One of the vital points of a health insurance policy is the aspect of hospitalization. Whether it is the network of hospitals that the insurance company has a tie-up with or the availability of these hospitals throughout the country. Another essential thing to consider while checking the premise of hospitalization is if cashless hospitalization is available and the terms and conditions under which it will be honored. Pre-hospitalization and post-hospitalization should also be checked to ensure you are fully aware of the benefits. 

Once you have settled on the policy, purchase it as soon as possible because it is now the best time to buy health insurance!

Also read: How Much Does Medicare Pay for Home Health Care Per Hour?

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