Secret Tips to Buy The Best Health Insurance Plan

Health insuranceOver 25 insurance companies offering over a 100 health plans and yet India stands at a dismal rate of about 18% when it comes to health insurance penetration.

Ignorance, lack of technical knowledge and aversion to the premium outgo are some of the major reasons why health insurance is avoided by individuals.

Those who do want to buy the plan find themselves in a jumble understanding the plan clauses and choosing the best one available in the market.

Are you one among them? Do you know how to zero in on the best available health insurance plans in the market? Are there certain parameters which help in selecting the best plan? And if there are do you know what these are?

Though to an ignorant individual every plan appears to be the same, there are certain tips which would help you in choosing the best health plan in a market saturated with choices. So what are these secret tips? Let us find out.

Cut the frills, go basic

When comparing health plans, don’t be wooed by the extra frills the plan promises. Look for a plan which has the basic required coverages.

Look for all-inclusive day care treatment’s list, organ donor expenses, high limits on ambulance charges, OPD expenses, AYUSH treatments, etc.

Check the pre-existing clause

It is no secret that pre-existing diseases are excluded from the plan’s coverage for a couple of years. So when you are buying a plan, always check the waiting period mentioned for such diseases.

The plan with the lowest waiting period should be an ideal choice as it would provide coverage earlier.

Check the limits and sub-limits

Though room rent, surgery expenses and ambulance expenses are covered, some plans might have a limit or sub-limit against such expenses.

Opt for a plan which has no sub-limits or the highest limits so that the hospitalization bills do not give you unnecessary nightmares in respect of the uncovered expenses.

Spare a thought for the exclusions

Buying a health plan does not mean that each and every ailment or treatment would be covered. Besides the pre-existing clause, there is also an exclusion list which excludes certain ailments, instances leading to an injury and treatments.

For instance, HIV/AIDS is usually a part of the exclusion list in almost every plan and so is any injury sustained due to alcohol or substance abuse. So, keep your eyes open regarding the exclusion list of the plan chosen.

Check the company’s claim settlement ratio and policy

The claim settlement ratio is the proportion of claims settled by the insurer against the total claims raised.

A high ratio is a good indicator of the company’s commitment to settle your claims. Furthermore, the settlement policy of the company is also important.

Check whether the company settles claims in a cashless manner or through reimbursement. The former is the best choice because it takes away the burden of meeting the huge bills initially.

Cross-reference the list of network hospitals

For a cashless claim you need to be admitted in a network hospital, technically called a Preferred Provider Network.

Check the list to know which hospitals are tied-up with the insurer and whether your preferred choice features in the list. This saves a lot of harassment at the time of a claim.

Check for discounts

Yes, a health plan comes loaded with different types of discounts which give you additional benefits. Apart from the universal No Claim Bonus, there may be premium discounts for buying a two-year plan, for covering family members or for having a healthy lifestyle.

Even in case of a No Claim Bonus, go for a plan which offers an increase in the Sum Assured instead of a discount in the premium because the former is more applicable in the longer run when the medical costs are expected to increase.

Evaluate the premium

The last tip is to evaluate the premium. By valuation, we don’t mean to indicate buying the cheapest plan. What we mean instead is to compare the plan features against its cost to determine whether you are getting a good bargain.

You can compare the features required against plans of other companies to find out which plan offers the same features at the best price.

Simple tips which hold the best solution in helping you settle on the best plan available in the market. So follow these tips and ensure the best health coverage.

Curated from Secret tips to buy the best health insurance plan

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