End 2024 Right: Know How To Select The Best Health Policy

Selecting the right insurance policy from the pool of options in the market can get challenging at times. It is undoubtedly among the most crucial decisions people make to shield their family’s future to tackle any financial burden arising out of planned hospitalizations or medical emergencies.

Given the present-day influx of insurance policies, opting the right one can get tricky. A right insurance policy is equated to a pre-requisite to safeguard your family from the financial toil that health concerns can abruptly place on one's shoulders. 

Know your financial goals and coverage needs

Before diving into policy options, evaluate your financial goals and requirements. Are you seeking coverage for yourself or for your entire family?

For individual needs, an individual health insurance policy works best. On the other hand, those wanting comprehensive coverage for their family can explore family floater plans. Identifying who you wish to protect financially is the first step toward narrowing down your choices.

Choose an adequate sum insured

An appropriate sum insured is essential to avoid financial shortfalls. A lower sum insured may fall short during medical emergencies, while a higher one could unnecessarily increase your premium costs.

Consider factors such as the age of family members, your city of residence, and the rising costs of healthcare. Accounting for future medical inflation ensures you remain adequately protected without overspending.

Opt for an insurer of repute 

The reliability of an insurance company can significantly impact your experience. Look for insurers with a claim settlement ratio (CSR) of over 95 per cent, which reflects their efficiency in settling claims.

To find credible insurers, refer to the Insurance Regulatory and Development Authority of India (IRDAI) website, which offers comprehensive data on CSR and company performance.

Focus on comprehensive expense coverage

An ideal health insurance plan should include extensive pre- and post-hospitalization coverage. Pre-hospitalization expenses encompass costs incurred before admission, while post-hospitalization expenses cover recovery costs after discharge.

Look for policies that offer 60-90 days of pre-hospitalization coverage and 120-180 days for post-hospitalization. This ensures broader financial protection during your treatment journey.

Review policy exclusions

Every health insurance plan comes with exclusions—treatments or conditions it does not cover. Carefully scrutinize these exclusions to ensure the policy aligns with your needs. If you require coverage for specific conditions, choose a policy that explicitly includes them.