3 Simple Steps To Find The Best Health Insurance Policy In India
A good health insurance policy is a necessity that few can afford to ignore. Whether you’re in need of full-time coverage, or just seeking an insurance plan to cover medical expenses that fall beyond the scope of usual preventive care, understanding the different types of health insurance and finding the policy most tailored to your needs is essential for you and your family’s long-term financial security.
While finding the best health insurance policy for yourself can seem daunting and overwhelming, there are easy steps you can take to make the process simpler.
Step 1: Learn about the different types of health insurance policy available in India:
The first step in finding the best health insurance policy is to educate yourself. Different types of insurers provide different types of plans and understanding the necessary terminology is essential for making an informed decision. Most important of which is to understand the differences between employer-sponsored and individual/family policies.
Types of Health Insurance Plans:
There are broadly two types of health insurance policy offered by the best health insurance company in India:
Indemnity Plans:
Indemnity plans are traditional forms of health insurance plans that offer medical support up to the sum assured.
There are 5 types of indemnity plans:
- Mediclaim
- Individual Health Cover
- Family Floater
- United linked Health Insurance
- Group Mediclaim
Definite Benefit Plans
Under definite benefits plans, the policyholder gets a lump sum payment from the Insurance companies on detection of illness.
There are 3 types of definite benefits plans:
- Hospital Daily Cash
- Personal Accident
- Critical Illness Plan
Step 2: Compare Coverage and Affordability:
Next, consider the kind of coverage you require. Do you want just basic coverage for check-ups and preventive care, or do you need comprehensive coverage that assumes a greater financial responsibility when unexpected medical bills arise?
To find the policy best-suited to you, it’s important to compare the coverage and cost. Get the premium quotes from different insurers and compare premium prices and the coverage each company offers. Make sure to ask insurers about co-payment plans, deductibles, and any out-of-pocket maximums prior to signing a policy.
Look for the right coverage from your health insurance policy:
One should choose a health insurance policy that secures them against a wide range of medical problems and provides benefits such as pre and post-hospitalization, daycare expenses, transportation, etc.
If one is buying a health insurance policy for their family, they should check whether the policy meets the needs of each member of their family, apply a little due diligence to choose a plan that caters to their needs.
Look for a affordable health insurance policy:
After looking at the coverage different health insurance policy offers and choosing a type of health insurance you need, it is important to consider the cost of premiums for these plans offered by different health insurance companies.
Remember that the cheapest health insurance policy may not necessarily be good or bad. Since, the quality of health insurance companies offering these policies also matter. A good health insurance company having a higher brand value may charge you higher premiums but you also get better service quality.
Finally, take advantage of any discounts or concessions you get on buying a health insurance policy for longer tenure depending on your budget.
Step 3: Selecting the best health insurance company in India:
Once you’ve narrowed down the pool of insurers to consider for the type of health insurance policy you need, research the reliability of each insurer before signing.
You can look at following fundamentals to choose the best health insurance company in India:
Claim Settlement Ratio (CSR):
Claim settlement ratio is one of the most important points of comparison. You can get the CSR figure of every health insurance company in India from the IRDAI annual reports, it denotes the percentage of claims settled by an insurance company against all claims received in a year.
It is recommended to select insurance companies having higher CSR for the purchase of a health insurance policy.
Incurred Claim Ratio (ICR):
ICR indicates the financial ability of the health insurance companies to pay claims. The ICR value is calculated using the value of claims paid against the total premiums received in a year.
It is recommended to select insurance companies having higher ICR for the purchase of a health insurance policy.
Solvency Ratio:
Solvency ratio indicates the financial stability of an insurance company as it compares all assets and inflows against the liabilities and outflows.
It is recommended to select insurance companies having higher Solvency ratio for the purchase of a health insurance policy.
Cashless Hospital Network:
Health Insurance companies in India have tie ups with a list of national and international hospitals for providing cashless medical treatments to the policyholder.
It is recommended to select insurance companies having a long list of network hospitals for the purchase of a health insurance policy.
Conclusion:
Ultimately, finding the best health insurance policy is no small feat, but taking these ten steps can help get you closer to finding the best policy for you and your family. With the right knowledge and understanding, you can make a sound decision that offers you and your family financial security and peace of mind.
