12 Tips to Buy the Right Health Insurance Plan

Recognising the critical role health insurance plays in safeguarding one's well-being, this article provides 12 tips to buy the right health insurance plan. In this article, we unveil the top 12 tips to guide you buy the right health insurance policy, ensuring that it not only aligns with your unique requirements but also provides the peace of mind that comes with knowing you are well-covered in times of need.

12 Tips to Buy the Right Health Insurance Plan:

1. Buy Early:

Many individuals tend to wait for the right time to buy a health insurance policy. However, it is advisable to start investing in health insurance as soon as you embark on your earning journey. Opting for a health insurance plan early in your career holds multiple advantages. If you are the sole breadwinner in your family, you can also extend the coverage to include your family members.

Buying a health plan in your 20s brings about several benefits, including a lower premium compared to buying coverage later in your life. This is primarily because individuals in their younger years typically experience fewer health complications. Commencing the health insurance journey early provides numerous advantages, such as a lower possibility of application rejection, seamless renewal processes, and extensive coverage against life-threatening ailments, including cancer and cardiovascular conditions.

2. Do Your Research:

Many individuals hastily purchase health insurance policies without fully understanding the intricacies of the policy features and terms. Failing to invest the time in thorough research and informed decision-making during the purchase of a health insurance policy may result in buying coverage that may not be suited for both you and your dependents. Hence, it is advisable to prioritise research by comparing different insurers and health plans before committing to a health insurance plan.

3. Choose the Right Plan:

To ensure you buy the right health insurance policy, it is crucial to ensure that your purchase plan aligns with your specific needs. Hasty decisions without a comprehensive understanding of your own requirements and plan features can result in overpaying for healthcare. To prevent this, engaging in thorough research and choosing a plan that best caters to your needs is imperative.

For instance, if you belong to a small family comprising two adults and 1 or 2 children, opting for a family floater plan is more advisable than an individual plan. Additionally, considering a separate health insurance policy tailored for senior citizens or individuals can prove beneficial in covering your parents and/or parents-in-law. This strategic approach not only leads to potential savings on premiums but may also unlock additional benefits inherent to such specialised policies.

4. Customise Your Plan:

Insurance companies provide basic coverage in their standard policies, but various illnesses and situations that require medical coverage may not be included in these standard plans. However, policyholders have the option to acquire specific add-ons tailored to their needs. While these health insurance add-ons come with an increased premium, many individuals choose a standard health insurance policy due to its lower initial cost. It is essential to note that the standard policy does not cover certain medical conditions or situations unless the policyholder opts for related add-ons.

Review the list of add-ons offered by the insurer and choose those most relevant to your needs. Add-ons such as coverage for critical illnesses and personal accidents are worthwhile, even if they entail a slightly higher premium.

5. Opt for Sufficient Coverage:

Choosing health insurance coverage should be based on individual needs and health conditions. Unfortunately, many individuals make decisions about their health insurance coverage primarily based on the associated premium. This approach may result in insufficient coverage during a medical emergency, leaving policyholders to bear excess medical expenses out of their own pockets.

While it is important to carefully consider the annual premium for health insurance coverage, it should not be the sole determinant when purchasing a policy. It is advisable to take into account factors such as family size, health history, and an analysis of potential future medical expenses. Opting for adequate health insurance coverage becomes crucial to avoid out-of-pocket expenses when faced with a medical emergency.

6. Consider Buying Multi-year Policy:

Nowadays, most insurance providers offer multi-year health insurance plans that entail a premium discount when purchased online. This not only results in savings on the premium but also extends your coverage over a more extended timeframe. Discounts of up to 5% to 10% are commonly available for policies spanning 2 to 3 years. Nonetheless, before opting for a multi-year policy, it is crucial to confirm that the selected policy aligns with your health and financial needs throughout the entire policy duration.

7. Read the List of Exclusions:

Every health insurance policy features a distinct list of exclusions that outlines the situations not covered under that specific policy. The exclusions vary from one insurer to another. Since insurance companies explicitly declare in advance that these situations won't be covered, any claims related to these exclusions are typically not accepted. Unfortunately, many individuals neglect to review the list of exclusions, leading to regret when they attempt to make a claim only to discover that it falls under a non-covered category.

It is crucial to thoroughly examine the list of exclusions before purchasing a health insurance policy. Being aware in advance of what is not covered helps avoid unpleasant surprises later on. If a specific condition or situation you desire coverage for is mentioned in the list of exclusions, you can then decide whether to proceed with that particular policy or explore alternative insurers that provide coverage for it.

8. Consider Waiting Period:

The waiting period denotes the duration during which a claim cannot be filed for the health insurance plan. Typically, it applies to pre-existing conditions and maternity benefits, ranging from 9 months to 4 years, depending upon the insurance company and the specific plan in consideration. Hence, before buying the policy, it is essential to verify the applicable waiting periods on your health insurance plan.

9. Check the List of Network Hospitals:

Securing funds, processing reimbursement claims, and settling claims can pose challenges for policyholders and their families. However, opting for treatment at an insurer's network hospital provides the convenience of a cashless claim. In this scenario, the insurance company directly handles the settlement with the hospital, eliminating the need for out-of-pocket payments. It is advisable to choose an insurer with an extensive network of hospitals in your vicinity. Moreover, it is essential to verify whether your preferred hospitals are included in the insurer's list of network hospitals.

10. Look for Unique Benefits:

Every insurer and each health insurance plan comes with distinct features and benefits. It is recommended to assess the relevant features and benefits when purchasing your health insurance policy. For instance, certain insurers may provide discounts on the initial premium for online policy purchases, while others might offer unlimited restoration of the sum insured.

11. Check for the Co-payment Clause:

Co-payment, also known as co-pay, refers to a predetermined portion of a claim amount that the policyholder is responsible for covering personally. This can be either a fixed sum or a percentage of the claim, with the insurance company determining the co-pay amount, varying for different medical services. Nevertheless, certain insurance providers put a co-pay clause only to offer senior citizens health insurance plans. Hence, it is essential to thoroughly understand all aspects of your policy before purchasing to pre-emptively avoid any potential disputes.

12. Read the Policy Document:

Despite continuous advice from financial experts urging individuals to thoroughly review all documents associated with a health insurance policy before purchasing, many people tend to neglect this crucial tip. The policy document includes vital information, including product features, terms and conditions, inclusions and exclusions, exemptions, and more, which every policyholder should be well-aquainted. Failing to peruse the policy document in advance may lead to potential disputes in the future.

It is imperative to read all policy documents beforehand to make an informed decision and avoid any future disputes. Moreover, if there are terms within the health insurance policy document that seem unclear, it is advisable to seek clarification from the insurer to ensure a comprehensive understanding of these terms and conditions before committing to the policy.

To conclude:

Including health insurance into your financial planning is a vital aspect that helps individuals and families in handling medical expenses. To optimise the benefits of your health insurance policy, it is advisable to apply the 12 aforementioned tips. This ensures that you and your loved ones are protected from the financial burden of medical bills.

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KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.

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This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.