Did you know that rising medical expenses and increasing probability of ailments have popularized
health insurance plans?
Are you too considering investing in one? Yes? Great! But, have you done your homework?
Buying a health insurance plan needs vigilance on your part so that you do not end up having a
wrong policy. So, here are some points which should be factored in before you look at the available
- Is the coverage level sufficient?
This is the most important consideration which demands a proper understanding of your healthcare
needs. If you buy any coverage without considering your requirements, at the time of a claim your
policy would fall insufficient in covering all the expenses. At the same time, if you buy a
coverage which is too large for your requirements, you would pay higher premiums which would be
a waste of your finances. An ideal balance must be reached between the coverage and your
requirements. These points would help when you ascertain your cover:
- If you are young, a lower coverage would be sufficient. However, you should gradually
increase your cover as your age progresses and be amply insured by the time you reach 40.
If including your family in the cover, you should definitely opt for a substantial level
of Sum Assured to extend umbrella coverage to all members.
If you already have existing health plans, you can make do with a smaller cover in your
- Residing in a metropolitan city necessitates a higher coverage level as medical costs are higher in
- If your medical history makes you prone to ailments, a higher coverage should be your choice.
- Lastly, your affordability plays a vital role in determining your coverage. The premiums
of a higher cover should suit your pockets.
- Who is being covered under the plan?
Your entire family members are precious to you, isn’t it? Then why exclude them from your health
insurance plan? Wouldn’t their healthcare costs be borne by you? If you are the sole bread-winner
of the family, you should ensure a health cover for each family member.
However, you could exclude your parents from your floater plan and buy a health plan for them
separately for a better alternative. Whatever your choice, you should estimate the number of
family members who are to be covered in a health plan before you buy the policy.
- What type of policy is suitable for you?
There are different types of health plans available in the market and you should decide which
type of policy would justify your needs. Take your pick from the below-mentioned plans:
Indemnity plans – these are the basic health plans which pay the amount of expenses
incurred if you are hospitalized.
Disease specific plans – a new breed of health plans have been developed which are
designed to cover such diseases and ailments which are otherwise excluded from the
scope of a normal health plan. Common examples of such plans are diabetes care plans,
cardiac care plans, dengue care plans, etc.
Critical illness plans – since critical illnesses involve a huge amount of money on
treatments, critical illness plans have been developed which provide the Sum Assured in
lump sum if the insured is diagnosed with any illness covered by the policy.
Hospital cash plans – these plans pay a fixed amount for each day of hospitalization.
This amount can be used in any manner and the amount is fixed at the time of buying the
So, you should ascertain which type of policy would be suitable to your needs
These three factors are the basic considerations which should be decided upon before you consider
a health plan and select the best one.