How to choose the cheapest health insurance plan in India?

Why is it that despite a plethora of health insurance plans available in India, there is a meager percentage of the Indian population that is insured? Let's try and understand more about buying a health insurance plan in India for starters.
 

A health insurance policy in India has two important aspects to it- the annual premium and the medical cover it provides. The plan you choose to buy should have the best of both worlds, i.e. you should aim to get the maximum possible coverage at the cheapest possible premium. And to be able to do this, it is important to scrutinize the health insurance plan keeping your own requirements in mind.

After all, there is no one-plan-fits-all alternative in health insurance.

Hence, to help you out, we have come up with a few tips that will help you decide on the optimal plan for you and your family.

Needs and budget-

A good starting point when looking for a new health insurance policy is to answer the following questions-

• How many people are you looking to cover under this health insurance plan?

• Is there any elderly family member/any member suffering from a high-risk ailment?

• What has been your healthcare expenditure in the recent past?

• What pre-existing ailments do you want covered in the health insurance plan you choose?

These questions will not only define your needs but will also succeed in putting an upper limit to the kind of expenditure you can afford for a health plan before you proceed to buy one.
 

Cheap or comprehensive-

Even the seemingly cheapest health insurance policy may have features that result in heavy out-of-pocket expenditure which pretty much defeats the purpose of buying the policy. For instance, even if two plans seem identical in coverage, one may come with terms and conditions that limit its benefits. These limits can be on the amount of coverage or even in the form of exclusions/ sub-limits/ co-payment etc. Hence, it makes more sense to pay a slightly higher premium and buy a plan that is not as cheap but provides you with a truly comprehensive cover.

Some factors which make for a comprehensive health insurance plan include -

• Coverage for pre and post-hospitalisation, OPD/diagnostics, room rent expenses etc.

• Availability of add-ons/riders for critical illnesses, accidents etc. 

If you purchase a cheap health insurance plan that doesn't cover the diseases/healthcare you expect, it is pointless. Remember that a cheap plan which makes you pay heavily out of your own pocket (since the coverage was not wholesome) will be a bigger financial burden in the long run.

Individual or family floater

The general theory associated with health insurance plans is that a family floater plan will inevitably be cheaper than an individual health insurance plan. While this may be true in many cases, it does not apply to every situation.

For instance, if there is a high-risk member in the family, then it would make more sense to buy a family floater policy for the rest of the   family excluding the individual and the high-risk individual should try and find the best health insurance policy based on the health risks involved.

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Claim settlement ratio

Claim settlement ratio is calculated by a simple formula

Claims Settlement ratio = No. of claims Paid during the period / (No. of claims Paid during the period + No. of claims Rejected during the period)

You must take this as an important parameter while choosing your insurer. Look at online reviews of health insurance providers. For instance- Insurance providers such as Niva Bupa offer you a claim settlement ratio of 92% along with fast and easy claim settlement.

Finally, while there will also be endless factors to consider while buying a health insurance plan, take your time to choose a policy that makes you feel secure. Want to know more about health insurance plans available to you? Go to www.nivabupa.com and find out!