10 Things to Consider While Buying Health Insurance

by Vinaya HS on November 9, 2017

in Finance

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To secure the financial well-being and health of your family, availing of insurance coverage is crucial. Choosing the appropriate policy will provide you with the peace of mind. Being covered ensures you and your loved ones receive the best treatment in case the need arises.

Healthcare costs are constantly rising and delaying your decision to buy a health plan is not advisable. Stressful living, unhealthy eating habits, and sedentary lifestyles increase the possibility of suffering from serious ailments like diabetes, cardiovascular diseases, and hypertension.

You may avoid buying an individual plan because you are covered under your company’s group insurance. However, the coverage may be insufficient. Furthermore, if you quit or lose your job you will no longer be insured.

Most companies allow you to buy health insurance online. Here are ten things you must consider before making a decision.

1. Determine the appropriate sum assured

When you are making this decision, you need to consider the healthcare expenses and their increase due to inflation. Furthermore, you must take into account your family history and other risk factors. Availing of a higher sum assured is recommended as treating critical illnesses may be very expensive.

2. Start at an early age

It is advisable to procure health coverage at an early age. This is because you will be able to avail of higher coverage at a lower premium. Furthermore, risks associated with health increase with age and insurers may deny coverage at a later date.

3. Check for lifetime renewability

You will most likely file a health insurance claim when you are older. Therefore, choosing an insurance plan that offers renewability during these years is important to ensure you are completely protected.

4. Avoid claim loading plans

If you choose a claim loading plan, the premium continues to increase in case of any critical illness that requires long-term treatment. As a result, you may not be able to afford the higher premium and lose the coverage.

5. Choose restore or top-up plans

In case you need to completely use the benefits under the family floater health insurance plan, a restore benefit is advantageous. The sum assured is automatically restored in case the entire amount is utilized during the policy term.

6. Provide accurate information

It is important that you provide accurate information to the insurer at the time of purchasing the policy. It is crucial you do not withhold any information, such as pre-existing conditions in order to avoid paying a higher premium or ensure you are not denied a policy. If you withhold information or provide incorrect data, your claim may be rejected in case the need arises.

7. Check for the waiting period

Most health insurance policies and plans include a waiting period for pre-existing medical conditions. This may vary from two years to five years. During this time, the insurance company does not cover any expenses related to such conditions. It is recommended you choose an insurer that provides the lowest waiting period.

8. Opt for minimum sub-limit

It is recommended you choose to buy medical insurance online with no or minimum sub-limit. You must ensure there is no cap on room rent because it will limit the type of room you may choose in case of a hospitalization. Sub-limits specify the maximum limit for different expenses and expenses exceeding these would need to be paid through your personal resources.

9. Know the hospital network

An important thing to consider when you buy mediclaim policy online is the hospital network. A wider network of hospitals means you are able to benefit from cashless treatment at more facilities. Therefore, you are assured that you will not have to bear the expenses and later claim reimbursement in case you or your family member is hospitalized.

10. Read the inclusions and exclusions

It is crucial you read all the terms and conditions before signing on the dotted line. Understanding all the inclusions and exclusions beforehand will prevent disappointment later when the need arises.

Although procuring the policy at a lower premium is desirable, it must not be the only factor. It is important you check the claim settlement ratio, no claim bonus benefits, and additional riders available before making your choice. It is recommended you compare different private health insurance plans and policies to make an informed decision.




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