5 things to keep in mind when buying health insurance

Insurance | February 27, 2020

The medical inflation is skyrocketing, and it’s growing at a higher pace than food inflation. There is a famous proverb, ‘Health is wealth’. Medical emergencies can easily wipe away your entire money at once. Since most of us cannot afford one-time expenses on health emergencies, it is better to take the health insurance cover. They usually charge a premium periodically and helps us with a lump sum amount when the need arises. So, while buying a health policy, which are the things you should keep in mind? Let’s explore 5 crucial things to keep in mind when you plan to buy a health insurance policy.

Find the type of health insurance suited to your needs

Health insurance plans are of various types. There are individual plans which are suitable for a single person. I usually advise aged people to go for an individual policy because they are at a higher chance of making a claim.

There are family floater plans in health insurance that covers the whole family. The family means self, spouse, and unmarried children. Some policies also include dependent parents in a family. Family floater policies are suitable for people who have more than one dependent, and there is a low chance of all making health insurance claim together, once or multiple times in a policy year.

Find the need for critical illness cover and Add-ons

Do you need critical illness cover? It covers critical diseases that can cost you a huge amount. If your insurance doesn’t include critical illnesses, then you may want to consider it. You can also take a look at add-ons available along with the insurance plan. This is important in the case of older people as their medical needs are different. Also, if you have a family history of critical illness, then you may go for it.

Know the claim process

The claim process is the most crucial part of any insurance. This is the time you reap the advantage of taking insurance and paying your premium without fail, year after year. The claim process should be simple and clear. Ask the insurance company specifically about the claim process and go through it carefully. The last thing you want is to run helter-skelter for getting your rightful claim. Additionally, look at the claim settlement ratio, which explains the percentage of claims settled by the insurance company, the amount claimed, and the percentage of amount allowed; it can help you to opt for the best health insurance company.

Check out the number of hospitals in the network

Every insurance company empanels with the hospitals for the treatment of its customers. It is better to get insurance from a company that has a broader network of hospitals. At a network hospital, you can get cashless treatment; however, if the hospital is not in the list of the insurance provider, then you need to get the claim amount through reimbursement. A wider network makes your treatment easier and saves valuable time in case of emergency.

Find the coverage that you need

Health insurance should cover you adequately. The coverage amount depends on your lifestyle, past medical history, and habits. You should also look at the premium needed for the specific cover size. This may vary among health insurers. While it is tempting to compare the premium and choose the cheapest, this may not be a good strategy. Look for the claim settlement process, time, number of network hospitals, and capping (if any) on the treatment of specific ailments as well.

The most important thing to keep in mind is that it is better to take health insurance because at later age there are higher chances of suffering from a disease like diabetes, BP, hypertension, etc., so you may need to wait for a longer period to get such ailments (pre-existing disease) covered. At an early age, there is no need to go for a medical check-up for buying a health cover.

 Note: Article originally appeared in Businessfortnight.com. Link to the source article is as mentioned below:


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Niraj JainNiraj Jain, CEO, JRK Insurance Broking Pvt Ltd.

Niraj Jain heads the insurance distribution vertical in JRK Group.

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avatar-dummy.jpgBirendra JainCEO, JRK Stock Broking Private Limited
avatar-dummy.jpgNiraj JainNiraj Jain, CEO, JRK Insurance Broking Pvt Ltd.
avatar-dummy.jpgAmit JainDirector Wealth Management, JRK Group
Arun_profpic.jpgRavi JainChairperson, JRK Group


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