Top 8 Tips to Choose the Best Health Insurance Policy in India

bySurobhi BoseLast Updated: August 19, 2022
Top 8 Tips to Choose the Best Health Insurance Policy in India

With the mushrooming cost of healthcare in India, any ailment or medical emergencies can burn a hole in the pocket. Thus, having a health insurance policy is the best way to ensure that an individual and his/her family are financially secured in case of any eventualities. With an extensive range of health insurance plans available in the market, it can get confusing to choose the most comprehensive plan as per one’s requirement. But don’t worry, here is a quick rundown of 10 simple tips to choose the best health insurance plan in India.

The Age Criteria

This is one of the primary factors to be considered while buying a health insurance policy. While zeroing in on a plan, do keep in mind the age of the family members who need to be insured. For example, in a family floater plan, the premium rate of the policy will depend on the age of the eldest family member.

Also, make sure to check the age limit criterion while purchasing a health insurance cover. For example, some health insurance policies offer a minimum entry age of 90 days to a maximum of 60 years while others offer a minimum entry age of 25 years to a maximum of 50 years. So, it is important to choose the plan accordingly.

The Waiting Period Clause

Every health insurance policy has its own terms and conditions with regard to pre-existing diseases. This means that if an individual has any pre-existing illnesses before purchasing a health insurance plan, then the claim filed for taking treatment against that illness will be accepted by the insurance company after completion of the waiting period.

In most of the policies, the waiting period ranges between 2-4 years. However, mediclaim policies have a lesser waiting period. Therefore, it is advised to go for plans that offer a lower waiting period.

Benefits of Cashless Hospitalization

In the health insurance industry, cashless health insurance is gaining popularity. For cashless health insurance, the insurance providers settle bills with the network hospitals for the treatment availed. Thus, it is advised that an individual invests in a health insurance policy that provides the benefit of cashless treatment at the network hospitals. The facility of cashless treatment is specifically very useful when one does not have cash in hand in case of emergencies. Moreover, it saves a person from the tedious paperwork that is needed at the time of admission and claim.

Coverage for Maternity Expenses

Ignoring the maternity benefits offered by health insurance policies is a common mistake made by policy buyers. With the skyrocketing cost of maternity care and delivery, it is smart to buy a health insurance plan that covers maternity expenses as well. Health insurance with maternity expenses comes with a waiting period of 2-4years. For example, if an individual is planning to get married and start a family let’s say after 3 years, then a plan with a waiting period of 2 years will be ideal to purchase.

No Claim Bonus

A No-Claim Bonus is a special incentive given by the health insurance company for every claim-free year. If the policyholder completes a year without making any claim for medical expenses then the insurance company offers a no-claim bonus to the policyholder in the form of premium discounts. If a person does not file a claim for a consecutive tenure of the policy then he/she can enjoy up to a 50% discount on the premium amount. Moreover, some of the insurers also offer an increase in the base amount of the policy for every claim-free year. This not only benefits the insurance holder but also adds to their savings.

For instance, if a person buys medical insurance of Rs 5 lakh and the insurance company offers NCB of 10% for every claim-free year up to a maximum of 50% then at the end of the 5th claim-free year the insured gets a sum insured of Rs 7.5 lakh. Thus, before purchasing a plan make sure to check the policy wordings for the NCB clause.

Claim Settlement Ratio

The claim settlement ratio (CSR) of a company refers to the total claims settled by an insurance company per annum over the total number of claims received. The higher the claim settlement ratio of a company is, the more reliable it is. Thus, the insurance buyers advise choosing an insurer that has a high claim settlement ratio.

This way, the policyholder will be assured that the claim filed will not be rejected by the insurance company until they have a valid reason. Make sure to understand both the reimbursement and cashless claim settlement processes for the health insurance plan

before buying it.

Co-Payment Clause

A lot of people find this term difficult to understand and tend to ignore it at the time of policy purchase. A co-payment clause is an agreement, where the insured agrees to pay a certain percentage of the claim amount in case of hospitalization and the rest claim amount is paid by the insurer. Therefore, before buying a policy check if there is any co-payment clause applicable that might impact the claim amount. Go for the plans that do not have sub-limits. However, most health insurance policies include a co-payment clause for insureds who have any pre-existing illness or have crossed a certain age limit.

Compare Premium

It is one of the most important aspects while purchasing the best health insurance plan in India. As there is an extensive range of health insurance plans available in the market, make sure to compare the policies in terms of features, benefits, premium rates, claim settlement ratio, etc. By comparing various plans online one can choose the most comprehensive plan at a comparatively lower premium rate.

Why Buy Insurance from Paytm?

Here is why one should consider buying health insurance from Paytm-

  • Paytm guarantees to offer insurance at the best price
  • An individual can avail of policy in a simple and hassle-free way by using the Paytm mobile app
  • Paytm offers an excellent claim support service to its customers
  • Paytm is partnered with the leading insurance providers in India to provide the best health insurance in India to its customers

Wrapping it Up!

Make sure to consider the aforementioned tips while purchasing the most comprehensive health insurance plan at a lower premium rate. With an extensive range of policies available in the market, choosing the best health insurance plan requires proper research and understanding. Paytm strives to help its buyers make an informed decision by choosing the right policy as per their requirements.

Is it mandatory to have a medical test to purchase a health insurance policy?
Medical tests are not compulsory before buying a health insurance policy. However, if the policy buyer is above 45 years, the health insurance companies ask for medical reports.
What is the tax benefit offered under a health insurance policy?
The premium paid towards the health insurance plan up to a maximum limit of Rs. 25,000, which can be further extended up to Rs.50,000 is applicable for tax deduction under Section 80C of the Income Tax Act.
How many claims can I make in a health insurance plan?
Generally, only two health insurance claims are permitted in a policy tenure. However, some of the health insurance providers offer policies with an unlimited claim during a policy tenure.

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