7 Step guide to selecting the best Health Insurance policy for you.

Okay, so you have decided to be a financially savvy person and agreed that you need health insurance. If you are like the many other people I know, the next steps are pretty vague. Of course there are innumerable agents/advertisements/companies that will project that they have the best solution. But spend a few minutes with me and you are on your way to choosing the best Health Insurance Policy in India for you.

Health Insurance plans in India are available provide compensation for hospitalization plus various optional add-on covers and features. They come in 2 varieties: Family Floater and Individual. As the names suggest, Family Floaters are for families (no points for that) and Individual for individuals (who else!).

STEP 1: FAMILY FLOATER OR INDIVIDUAL?

What decision that confronts you is whether you should buy a family floater policy or an Individual policy?

FAMILY FLOATER POLICY: These policies have a Single Sum Insured that can be used by any member of the family up to any extent within the overall sum insured. If the senior-most member in your family is aged less than 45, consider a family floater policy. If the senior-most member in your family is aged more than 45, buy individual policies with graded cover for the members of your family. The reason for this is in a family floater policy, premium is based on the age of the senior most member who is most likely to fall ill and use the sum insured.  Companies may allow between 2 to 4 children.

INDIVIDUAL POLICY :  An Individual policy is purchased by an individual or by a group of individuals who are part of a family (Spouse, Children, Dependent Parents, and Parents-in-law). Each member has his own Sum Insured. Once he exhausts his sum insured, he cannot claim any further hospitalization expenses.

Family Floater Policy: One Sum Insured shared by All

Individual Policy: Separate Sum Insured for each member. Sum Insured cannot be shared.

STEP 2: SHOULD YOU BUY CRITICAL ILLNESS

CRITICAL ILLNESS COVER: Sedentary lifestyles and stress is causing an increase in critical illnesses like heart and kidney disease, cancer, diabetes, hypertension and so on. If you are less than 35, it makes sense to opt for a Critical Illness cover in your health plan. Critical illness cover would give extra compensation if you are diagnosed with one of these illnesses. This is over and above your sum insured for hospitalization. Critical illness policies are available as add-ons to health insurance policies or a separate Critical illness policies.

STEP 3: MATERNITY COVER:

MATERNITY COVER: If you are in the procreation years you must consider this cover in your health plan. Most companies have a 3-year waiting period before you can claim; hence it makes sense to plan much in advance. Maternity costs are rising and buying insurance is a wise idea. Check out the insurance policies with maternity and new born cover. 

STEP 4: CHECK FOR ADDITIONAL COVERS

ADDITIONAL COVERS:  If one of the insured is a child below 10 or aged, you may want to consider nursing care or convalescence benefits. If you are a firm believer in alternative medicine, you may want to buy AYUSH (Ayurveda/UNANI/Homeopathy) cover. Transport by Ambulance is becoming a necessity in today’s world, and you may want to opt for it. 

STEP 5: CHECK FOR PRE-EXISTING DISEASES

A pre-existing disease means an existing health disorder for which you will take or will need to take treatment. Since these will most certainly lead to hospitalisation claims, insurance companies are careful in selecting clients with pre-existing conditions. Advancing age will imply pre-existing diseases. Most companies will cover pre-existing diseases only after 48 months of continuous coverage. Most companies also insist on pre-acceptance medical tests if the applicant is aged 45 or more. Some companies are more liberal and conduct such tests at 50, or 55 or even 60. You may want to check these out if you wish to avoid medicals: remember such companies will be expensive or even restrict cover offered.

STEP 6: DO YOU HAVE A PREFERRED HOSPITAL

PREFERRED HOSPITAL: Do you wish to take treatment in a particular hospital? Check if this hospital is on an Insurance company’s list. If it is you will probably get cashless treatment, which means that you will not need to pay any cash up front. If your preferred hospital is not on an insurance company’s list, you may have to pay up to 20% of the bill yourself.

STEP 7: COMPARE BEFORE YOU BUY

HOW TO COMPARE AND BUY: Follow this simple process:

·         Log onto www.policylitmus.com

·         Click on Health Insurance Quotes

·         Choose Family Floater or Individual (refer to discussion above for help).

·         Customise your policy by choosing the covers you need.

·         Compare Service standards and Price from the options displayed using the “Sort” Button

·         Select a policy of your choice

·         Buy.

Amit Kumar