How to choose the right health insurance

How to choose the right health insurance

Published: 03rd Jan 2025

By: Value Research

A quick guide to picking the perfect policy without the stress

Coverage that makes sense

Choose a sum insured that covers your family's medical needs. For a family of three or four, start with Rs 20-25 lakh coverage. If you're insuring more members or are in a high-cost city, consider a higher sum insured.

Family floater vs Individual plans

Family floaters cover all members under a single sum insured, but premiums depend on the oldest member's age. Consider separate policies for seniors to optimise costs and ensure adequate coverage.

The devil in the details

Watch for sub-limits on room rent and ICU charges, co-pay requirements where you must bear some medical expenses, and treatments or conditions not covered by the insurance. Don't skip the fine print—it could save you from surprises during claims.

Network hospitals matter

Cashless treatments are only available at empanelled hospitals. Ensure that hospitals near your residence are included. If you travel often, check for network hospitals in other cities.

Beyond basic coverage

Look for restoration benefits that reset your coverage if it's exhausted during the year. Weigh this against the cost of a larger base cover. Also, consider pre/post hospitalisation coverage (30-60 days) and annual health check-ups.

Track record counts

An insurer's claim settlement ratio is a key indicator of reliability. Look for insurers with a low claim rejection rate and fast settlement times. Find these details in public disclosures on company websites.

Honesty is the best policy

Be truthful about medical history and lifestyle. A rejected claim hurts more than a higher premium.

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