Personal Finance: How to select the best health insurance?

    Personal Finance: How to select the best health insurance?

    The demand for health insurance plans has risen since the outbreak of the Covid-19 pandemic. Here is a checklist to consider until you collect one appropriate for your needs.

    All of us saw the extraordinary severity of the coronavirus pandemic as unprepared to pay hospital bills. The market for health insurance policies has risen following the outbreak of the Covid-19 pandemic. Here’s a checklist to consider before you choose one that suits your needs.

    What is a health insurance policy?

    There are various forms of health insurance policies on the market. Health insurance providers currently sell two forms of policies: compensation and benefit-based plans. Those with reimbursement plans will be reimbursed for the amount expended on hospital bills and those with benefits-based policies are reimbursed for the fixed lump sum, regardless of actual expenditures.

    Personal Finance: How to select the best health insurance?

    Allowance schemes are available as private health insurance packages or family float schemes, while essential disease coverage available is defined as benefit-based plans. “Indemnity plans and fixed-benefit plans meet two different needs,” said Adhil Shetty, CEO of, an online marketplace for financial products.

    Also Read: Future Aspects Of The Indian Health Insurance Sector

    Special coverage for a given condition needs a fixed benefits package, whilst the reimbursement policies seek to reduce the financial burden of hospitalization resulting from some type of medical necessity.” If you have a high likelihood of specific illnesses within the family, it will be easier for you to have a fixed benefit plan and a full benefits scheme. ‘A balance also ensures that all costs related to pre-or post-hospitalization are covered and health insurance is not confined to hospital expenses alone,’ said Shetty.

    Check for sub-restrictions

    The sub-limitation of the plan is an important aspect of the compensation systems. This means you have to walk away from part of the hospital bills. This is because the extra costs in plans with sub-limitation include doctor’s fees, nursing fees, ICU fees, etc. are correlated with room rental.

    Hospital and room rental costs are typically limited to 1% of overall coverage. “The sub-limits on the health insurance plans cover the total claim for particular diseases and medical treatments,” said Raj Khosla, founder, and managing director of, the financial services firm. It is advised to review the relevant sub-limit before you sign up for medical insurance.

    Often select a comprehensive health insurance package for long-term optimum stability and comfort, but it can be a little expensive and can draw additional premiums.”

    Mark the time to wait

    Health insurance policies cover unexpected health conditions or disease care costs. This is why insurance providers are not covering diseases from the first day of the transaction, since current diseases are not covered.

    The cost of treating pre-existing diseases shall be compensated only after the waiting period is ended. The new insurance laws require a four-year waiting period, although some firms restrict it to two or three years. The definition of waiting time is the same in insurance plans depending on income and profit.

    See the co-payment provision

    Senior citizens also have the co-payment provision inserted into their insurance benefits. This provision commands the customer to cover half of hospital costs, while the insurance provider covers the remainder.

    In most cases, insurance providers insert up to 20% of the hospital bills charged for the co-payment. Reliance General Insurance, a private insurance firm, said Rakesh Jain, executive manager, and CEO, “Co-payment in all insurance claims is risk sharing, the greater the co-payment, the better the insurance company will provide a customer premium reduction.”

    Choose the sum of coverage

    No fixed law defines eligibility for health insurance. However, you will determine the amount of coverage, based on the medical background of your family, your residential town, and the local hospitals. As medical expenses rise, it is prudent to obtain sufficient compensation to cover all medical costs.

    Elderly people find it difficult to purchase their option of health insurance policies. This is because many policies have a cap on the age of entry that prohibits the elderly from buying them. However, those who pay for insurance benefits before they turn 60 are relieved of the co-payment burden for the entire tenure.

    Although family floats covering the whole family and parents are relatively affordable, it makes sense to purchase a separate parent health policy to ensure increased treatment. However, health insurance rates rise with age, which is why older people have to pay more than their younger counterparts for health insurance premiums.

    Personal Finance: How to select the best health insurance?

    Rajat Singh
    A Bioinformatics Masters degree from the G.N Khalsa Science and Commerce College (Mumbai). Blogger by choice and an enthusiastic person with a technical background and passion.

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