5 Simple Steps to an Effective Health insurance Strategy

Health is Wealth! This is the proverb which we all have heard about. In this fast growing life we hardly get time to take care of our health. Without a good health, even the wealth is meaningless. Moreover, to treat the ill health, it takes a lot of wealth or money. With growing medical inflation getting treatment in hospital is an expensive proposition. An adequate financial arrangement is necessary to tackle the financial bumps during the need of the hour.

Health insurance comes to your rescue at that juncture. A health insurance plan helps you to pay for health care. It provides the financial protection to you and your family in case of a severe illness or injury.

With health insurance, you need not have to pay the entire costs for availing the medical services. In today’s age, it’s vital to buy a health plan to keep yourself prepared to face any kind of illness, so that it does not make a hole in your pocket.

There are many health insurance providers in India, but choosing the right plan from the right insurer is an essential aspect. You should select a policy that covers you adequately.

Here we are mentioning five key steps that can help you choose the right health insurance plan.

Assess Your Needs

The most vital step is to examine your health insurance needs. You firstly need to assess the common medical/ hereditary health issues that may impact the health of your family. To ascertain the health problems in your family, you can go for the medical checkup. It helps you get a rough idea regarding the coverage amount that you may need for your family’s health.

Get the Right Amount of Cover

Right health insurance cover is the Sum insured which is the coverage amount provided by your insurer under the policy. The health insurance policy gives an option for both cashless treatment (when the policyholder approach for network hospitals) and reimburses expenses (when the policyholder approach for non-network hospitals). You should choose a sum assured which is optimum to take care of the medical expenses considering inflation in mind. The  sum insured keeps you covered against medical treatments as mentioned under your policy.

As medical costs are elevating, choosing high sum assured keeps you on the safe side. You need to make a balance of your sum assured. It’s a right move to begin with a reasonable medical cover and then increase the coverage depending on your family size and income apparently.

Coverage of Illnesses

It’s important to ensure that your health plan covers a broad range of illnesses. Your health plan should also include the coverage for Critical Illnesses, the treatment for which is expensive and requires constant care and treatment.

Insurer’s Hospital Network

When you are buying a health plan, it is wise to know about the network hospitals registered under a particular insurer. You should check the service standard and reliability of health services provided by those hospitals and whether those hospitals are close to distance from your location to have easier access in the event of emergencies. It’s prudent to choose a medical plan having a wider network of hospitals providing a range of medical treatments as well.

Claim Process/Claim Settlement Ratio

Last but not the least, it is important to check the claim process and claim settlement ratio of the insurance company. The intent is to get an easy claim when required. A tedious and complex claim settlement process will aggravate the situation and defeats the purpose of buying health insurance as it will be a time consuming affair. Claim settlement ratio is also important which defines the number of settled claims by the insurance company.

Lastly, Health insurers are offering plans to cover your medical costs and providing a range of benefits to suit your medical requirements. choose a right health insurance plan and live a hassle-free life.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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