I want to buy Health Insurance policy for my family but getting confused

[sindian]

I want to buy Health Insurance policy for my family but getting confused how much limit or sum insured I should opt for?

[hiren]

Try comparing various policies of various insurance company and then post that you can have a meeting with an agent. He will help you!

[akanksha]

Hello Sindian,

The Sum Insured – or the quantum of coverage under a Health Insurance policy – is not a static number. It varies with individuals and their circumstances. Today, even a routine surgical procedure can easily cost in excess of a hundred thousand rupees. Amid such circumstances, if you are an individual and the age group falls in 25-35 years then you should be covered up to Rs 3-5 lakh, which is equivalent to the cost of a coronary bypass surgery at a good hospital. If you are an individual and the age group falls in 35-to-45 year old with a 4-member family, a family floater of around Rs 10-15 lakh would be recommended. Senior citizens, who have relatively higher odds of hospitalization, should consider having a Health Insurance of up to Rs 10 lakh on individual basis. One should consider increasing the coverage (Sum Insured) keeping in mind existing health, medical inflation and composition of the family. (A top Up plan can be also added as a supplement to the basic health insurance policy to safeguard oneself from catastrophic eventualities. Riders like Critical Illness is also becoming the choice of a good health insurance investment. The Critical Illness would safeguard one against other crucial financial burdens like an impending loan or other recuperating expenses

Thanks

Akanksha

[Ragini Khanna]

You want to cover your family for as long as it's possible. The older one gets, more the expenses mount. Hence, when picking a plan for your folks, check till what age the plan can be renewed. Options are few, going wrong once could mean not being able to get health insurance later.

So all in all, here’s a list of steps for buying the perfect plan:

Step 1: Find a honest expert advice when you need it.

Step 2: Fill in your family and other particulars before you start your search. Always declare any pre-existing conditions. If found out later, your insurer may not only reject your claim, you also stand the risk of your policy getting cancelled.

Step 3: Compare the top three quotes for the 7 points mentioned below:

1. Cover: Cover must be evaluated with respect to the points covered against the premium you pay. Is the policy economically optimized? Check which company gives the most cover against the premium they charge.
2. Co-Payment: Co-pay is an option (and sometimes mandatory) to pay a certain percentage or a certain fixed amount of the claim by the insured. This makes the premium way cheaper and affordable. However, choose a co-pay option which is a good balance between the amount you pay and the discount you get on your premium, as you don’t want to pay most of your claim amount and neither do you want a very high premium. For senior citizens and people above a certain age, this co-pay is a high amount or a higher percentage and it is mandatory. Check for a company that gives you the lowest possible co-pay. If you’re confused, you can always opt for an expert opinion.
3. Maximum age at renew-ability: As discussed earlier, many companies do not allow renewal after a certain age (most commonly 90 years). While choosing a policy you can go for one that offers a lifelong renewal.
4. Coverage of specific diseases: Post 60 years of age, the odds of suffering from conditions such as hypertension, diabetes, heart problems etc are higher, unfortunately. Health complications can arise out of those. When you buy a policy, make sure that most (ideally all) of the diseases on your priority list are covered.
5. Waiting period: Go for the health insurance policy that has the minimum waiting period. This way your conditions are covered sooner.
6. Medical check-ups: Many companies insist on medical checkups while many just don’t. Medical check-ups are carried out to figure out the pre-existing conditions. If there are more pre-existing conditions that the threshold, your insurer can deny you a policy. Go for a company that does not insist on medical check-ups.
7. NCB: Check for the no claim bonus discount, which is a “bonus” or discount for every claim-free year. Many companies do not offer NCB. You might want to go for one, as that may help you cut down your premium.

Step 4: Buy the best health insurance policy that suits you perfectly. Mind you, there will rarely be that one perfect policy. You may have to prioritize your needs and let go of things that hold the least importance. There will be a medical check-up in this timeline, if your company insists on one.

Step 5: Once you buy the policy, dedicate a good amount of time reading the policy wording. You have a look-up period, wherein you can cancel the policy without any loss. Make the most of this. Be alert, be aware.