7 Tips for buying health insurance in India

Choosing the right health insurance plan for you and your family is a serious decision as health is the only true wealth and it provides you peace of mind and sense of security not only for yourself but for your family too. It assures you that you can always offer them the best chance of getting well just in case anything goes wrong.

Many of us buy health insurance with the sole objective of saving tax but fail to consider the importance of buying a comprehensive medical insurance plan. More than 80 percent of financial crisis originate out of a medical emergency and the same can severely damage one’s finances. Health emergency will not only require funds for treatment but for most of us will also hurt our ability to earn thus hitting us with a double impact. Imagine losing a family member because you cannot afford to give him the best medical treatment. So health insurance is a must today.

With increasing healthcare costs, the reason to get health protection as early as possible is gaining importance because once we get some issues like BP, Diabetes the chances of getting a health cover go low and the cost goes high. There’s nothing more satisfying than to pay a small price and get peace of mind.

The 10 rules to keep in mind when you buy health Insurance –

Tip 1– First and foremost, never lie and hide information in your application form. If you have an ailment please make sure you mention it. Get your insurance agent to help you get a plan which will cover the ailment even after a waiting period. Today in most the plans all preexisting diseases also get covered after 3 to 5 years depending on the plan. Having an understanding and professional financial advisor or agent helps a lot in this case.

Tip 2 – You must have an individual health insurance even if your company offers you a corporate group health cover. There could be a possibility that your corporate cover will cease once you leave your job or retire and the company may also decide to withdraw this benefit or choose to leave other family members out of the coverage. If one is suffering from a chronic disease, this becomes more important. You can consult a professional financial advisor like Findependence Solutions to do an audit of your company’s group cover and see if it is necessary for you to get a separate health insurance.

Tip 3 – Always buy your insurance through an insurance broker that understands your need and is actually well versed in the financial and insurance industry with an ability to help you with claims. Remember if you are having a heart attack or have an accident you won’t be in a position to do it yourself or fight the insurer if your claim is rejected without proper justification. Never buy direct and never ever buy online. You can call our experts at Findependence Solutions to find out which insurance policy is the best for you and your loved ones.

Tip 4 – Choose the right amount as ‘sum insured – While selecting a Sum Insured you need to keep the today’s costs in mind. If you are the one who is putting in a small city then your aim of cover should at least be ranging from Rs.3 to 5 lakh whereas if you live in a metropolitan than your cover should not fall anywhere less than Rs. 5 – 10 lakh. Also, you can move from one insurer to another through porting. Don’t buy a new plan but instead port your plan. With porting your benefits which have been already accumulated in the old plan gets transferred to the new plan. Also, remember to keep on increasing your health cover from time to time to take care of the medical inflation.

Tip 5 – Get early protection – Buy a health cover as early in life as possible and definitely before you turn 40. As you are likely to make no or few claims in earlier stages of life, you can get the benefit of no-claims bonus and add up to the original coverage every claim-free year.

Tip 6 – Waiting Periods – All health plans have a waiting period for pre-existing ailments. Please see what the waiting period is in the plan that has been suggested to you. Waiting period generally extends from 2-5 years varying from company to company. It is always advisable to opt for a company that offers minimum waiting period. Also, there are some companies which offer you coverage with lifetime exclusions. Exclude such companies from your options.

Tip 7 – Buy a plan with no or minimal sub-limit. Be especially careful of plans which offer a cap on the room rate. You can’t decide the category of the room if you or your family member is carried in an emergency situation to the hospital. Watch out for Sub-limits. Sub-limits means that your insurer specifies a limit for an expense and anything above that needs to be borne by you, Room rent, diagnostics, and doctor’s fees are the most commonly introduced sub-limits. You need to check the limits while choosing a policy.

Some small additional things that you must keep in mind - Make a list of preferred hospitals where you will like to be cured. Does the plan offer cashless in those hospitals and are those hospitals covered in the insurer's list of network hospitals. The reason I have not put this in the main rules is that as of today most of the insurers cover most of the good hospitals, so this should not be a major challenge.

I hope that by following the above rules you are able to choose the best policy and offer the best of life for yourself and your family. If you are still confused about which health insurance is ideal for you or if you are finding it hard to find a good and professional financial planner or insurance agent whom you can trust, then I would highly recommend you to have a word with Findependence Solutions at +91-9924488884, or you can directly mail me at [email protected]. Happy policy shopping!