Secret Tips to Buy the Best Health Insurance Plan
Updated 15 May 2020
8 Stupid Simple Tips to Buy the Best Health Insurance Plans
Over 25 insurance companies offer 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 medical insurance plan available in the market. Are you one amongst them? Do you know how to zero in on the best medical insurance plans in the market? Are there certain parameters which help in selecting the best medical insurance plan? If yes, do you know what these are?
Though, to an ignorant individual, every plan appears to be the same, there are certain tips that a go a long way in helping you pick the best medical insurance plan in the market saturated with so many choices.
So what are these stupid simple tips?
Let’s find out! Shall we?
Let Us Find Out How to Buy Best Health Insurance:
- Cut the Frills, Go Basic – When comparing health insurance plans, don’t be wooed by the extra frills a plan promises. Look for a plan that 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 a plan’s coverage for a couple of years. So when you are all set to buy a plan, do well to check the waiting period mentioned for such diseases. The best medical insurance 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 in most plans, some might have a limit or sub-limit against such expenses. Opt for the best medical insurance plan that has no sub-limits or the highest limits, so that the hospitalization bills do not give you 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 that 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 wide open regarding the exclusion list of your intended plan.
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- Check Insurer’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 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 medical insurancechoice 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 of hospital features in the list or not. This will help you save a lot of harassment and a substantial fortune at the time of a claim
- Check for Discounts – Yes, a health plan comes loaded with different types of discounts that 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 that 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 – Last tip in our list, but certainly not the least, 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
So there you have it – 8 stupid simple tips that hold the best solution in helping you settle on the best medical insurance plan available in the market. Simply follow these tips and ensure that you always buy best health insurance.