Thanks to rising awareness, a large number of working professionals understand the significant benefits of a health insurance plan. However, not many know how to choose the right health cover that meets their family’s needs. Mentioned in this post are some smart ways to select the ideal health plan for you and your family.
The cost of medical treatment has been rising exponentially over the years. Poor dietary habits increase in sedentary jobs make health insurance mandatory for people of all ages. By investing in a health plan, while you’re young and healthy, you can save on medical expenses down the line.
With dozens of health insurance providers and numerous plans, zeroing in on the perfect health plan that works for you and your family is like searching for the elusive needle in a haystack. Worry not, here we give you some tips to help you choose the ideal health insurance plan.
5 Rules that help you make Smarter Health Insurance Choices
- Benefits should be your Deciding Criteria and not the Premium
It’s human nature to want to cut down on costs and save a few extra pennies. In health insurance, remember that it’s worth it to pay a few hundred rupees extra for the premium to ensure that you get all the benefits that you require.
- Analyse the Medical Needs of your Family
Start by understanding the medical needs of your family. Identify the members in your family whom you want to include in the plan. Do you want to add your parents to the family plan, or do you want to purchase a separate policy for them? Does your family have hereditary medical problems?
Understanding the medical history and needs of your family members will give you a clear idea of how much cover you and your family need.
- Choose the Sum Assured Carefully
When you take a health insurance plan, the insurance company reimburses your medical expenses up to the sum assured. Higher the sum assured, the higher the amount you can claim.
To give an example, let’s say you choose a health plan that offers a sum assured of Rs. 5 lakhs. One of your family members requires cardiac surgery that costs Rs. 7 lakhs. The insurance company will reimburse upto 5 lakhs of the total cost, and the remaining 2 lakhs has to be borne out of your pocket.
Consider the medical needs of your family and pick the right sum assured that covers your probable medical expenses.
- Strike the Right Balance between being Over-Insured and Under-Insured
Higher the sum assured you choose, heavier is the premium you pay. Consider a young couple in their late 20s. Paying for a health insurance cover of Rs. 10 lakhs makes them over-insured. This is because they are not likely to have huge medical expenses and do not have any dependents.
It’s best to choose a reasonable cover, and you can later increase it as income rises and as your family grows. Alternatively, family health insurance plans offer coverage for all family members under a single plan with a single premium.
- Finally, make sure to Go Through the Inclusions and Exclusions
Did you know that most medical insurance plans come with waiting time before you can get treated for pre-existing diseases? Also, specific medical procedures like cataract, hernia, and several others are excluded in the first few years.
All health insurance plans have a list of inclusions (what’s covered under the policy) and exclusions (what’s not covered). Make sure to go through the policy details to know the inclusions and exclusions, so that you get a clear picture of what you’re signing up for.
Health Insurance Selection is not complicated
Though it may feel a bit overwhelming, once you start researching health insurance policies, you can understand that it’s quite straightforward. Avoid choosing a random health insurance plan to save taxes.
Instead, use the five rules listed here and evaluate different plans, to help you pick the ideal policy that meets the needs of all your family members.