How to choose a Health Insurance Plan (Related Topics Covered)

Choosing the best health insurance plan is the the most important thing that comes to mind when you think of financially securing your family for future. "How to Choose a best health insurance plan" is the most asked question among the people to financial advisors. "Why Health Insurance is important" and "How much health Insurance do I need" are also the complex questions which comes in the mind of young financial planners. Here in these article we are going to cover many related question about Health Insurance. so, Keep Reading.....

Topics Covered :
  • How to choose a health insurance
  • How to choose a health insurance policy
  • How to choose a best health insurance plan
  • How to choose best health insurance policy
  • Why health insurance is important
  • Which health insurance company is best in India
  • How much health insurance do I need

  • How to choose a best health Insurance plan ?

     First step of financial planning is securing yourself. Your insurance is a an important part of it.  Today we will discuss about health insurance. Now you'll learn the factors to choose health insurance and how can you select one, as per your need.  First we'll talk about general points. 

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    First and most important is claim Settlement Ratio. It is the ratio for total number of claims the company had and how many of them were settled. A company with good settlement ratio should settle your claim easily and in a hassle free way. 90% above is good enough. If it is between 85-90% and is meeting your other requirements then you can consider it as well. 

    Second, cover to premium ratio . This is, how much premium you have to pay for the amount of cover you'll get. A company can ask for Rs. 2000 per month for a cover of 3 lakhs, while the other company might ask for Rs. 1000 only This comparison can be easily done on sites like Policybazaar.com

    Different insurance companies have tie-up with many different hospitals. You need to know how many hospitals in your area or in your city have tied up. You get cashless facility from the tie-ups. In most of the cases you go for check-up, pay the bills and that is reimbursed by the insurance company. But with cashless facility, you just need to go for check-up and come back. You do not need to pay anything. 

    Everything would be paid by the insurance company. This is very helpful, specially when the amount of claim is big. 

    Forth is other facilities available Like OPD facilities, pre and post hospitalisation charges. If there is some treatment going on before going to hospital or the time for which medication expenses will be taken care of the more is the time period for cover, more beneficial it is. 

    Fifth, bed facilities. Sometimes insurance companies do not agree to pay charges for private room. You need to check that An AC room is not a compulsion But there should be facility for a private room. It's not that you can't go in double occupancy room of general ward. But, usually private rooms have better facilities and treatment and sometimes you need that privacy. Even if it is costs a little more try going for the cheapest possible private room facility. 

    How Much Health Insurance do I need ?

    Take care of these 5 factors while selecting insurance policy. There are two type of insurance plans : First is Indemnity plan, Second is definite benefit plan. In Indemnity, Insurance company will pay all the hospital expenses. In definite benefit plan, there's a fixed condition where you can get claim for a particular amount. You do need bills too so you have to select a plan as per your requirements.

     I would suggest Indemnity plan because it will cover some extra expenses. Even if it is less, you'll be tension free, especially if you're getting cashless facility. Then, you need to decide whether to go for Family floater plan or an Individual plan. You can take for your whole family Family means husband wife and parents and children who are dependent on them.

    Let's say you are a family of four and you can buffer of 10 lakhs. This is family floater plan.

    In Individual plan, every member will have its restricted limit. A different plan of 2.5 lakhs for each member. You need to select a plan as per your requirement.

     Third important thing is the top up plan. Like critical illness cover or accidental covers. In these cases, it's not just about paying to the hospital. At that time, when you are not able to work, you can also run errands from the insurance money. You'll get these benefits if you take extra covers If you are already taking life insurance which I suggest for every earning member then you must take critical illness and  accidental covers with that.

    Reason being, life insurance premium is fixed and health insurance premium is not fixed. So, it's better to take them with life insurance and keep your premium fixed. First of all, know your needs. As we had discussed, you should take family floater plan for family or you need critical illness cover in health insurance only. You need to mention some special disease like if you have a pre-existing ailment.

     Always remember to specify the pre-existing illness, if any.  Many companies, after 2-3 years, provide claim on pre-existing illness as well. In this case, it can become a big factor to choose the plan. Also, if you take any other treatments like ayurvedic or physiotherapy. 

    Note all your needs. After that, go to some portal where you can compare all the insurances. Compare every insurance, not just on cover vs premium but also on other facilities provided by them. Accordingly, select a few policies and talk to agent and understand in details.

    Which Health Insurance Company is best in India ?

    Here are the best health insurance companies in India :

    1. HDFC ERGO General Insurance 
    2. ICICI Lombard General Insurance 
    3. Apollo Munich Health Insurance
    4. Max Bupa Health Companion Individual
    5. Kotak Mahindra Health Insurance


    In the end I would say, the more simple and clear to understand policy you get with less exclusions, the better it is for you. 

    Read the policy carefully. Read all the inclusions and all the exclusions. Fill the form carefully because it is your responsibility and not that of the agent. You also need to know the limit you need. 

    Take minimum cover of 4-5 lakhs. If you cannot take cover of 4-5 lakhs directly, then you can extend your cover with medical claim in the form of top-up or super top-up plan. Do not forget to check that in your policy. Ensure that you have a minimum cover of 4-5 lakhs and can be extended if needed depending on your family health history.

    I hope this article will help you to select right policy for self and your family. And share this article with your relatives and friends so that they might also get benefited.

    If you have any query regarding this then you may comment below. I will try to solve your Query.

    Have a Great Day.....

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