Confused About Picking Health Insurance Policy? Few Steps Can Help You Choose The Best Plan!

As per latest report, India spends about rupees 40 lac crore annually on health care, but commercial health insurance is still rupees 20 thousand crore, only 5 per cent of the total expenditure. As a result, about 16% Indians of lower income group go below poverty line (BPL) annually. However, there is a good sign that slowly, but steadily, the importance of having a health insurance policy is being realised in India.

A good health insurance policy is an important financial product. But it’s equally important to choose a right product out of numerous from different insurers. Customers often get confused picking suitable health insurance plans for them.

The government in its Union Budget 2015, has raised the tax exemption limit for health insurance policies from Rs 15,000 to Rs. 25,000. For senior citizens and most senior citizens (age above 80 years), the limit will stand at Rs30,000, up from Rs20,000.

However, there are some important points to be considered while buying mediclaim policy for you and your family.

Following these points, you can get best plan in an affordable premium:

1)  Do thorough research over internet in order to choose the product that best suits your insurance needs.
2) Compare premium rates and benefits of different plans of different insurance companies. Keeping benefits offered by different insurers in mind, choose the plan with lowest premium.
3) Be tactical while choosing plan. Take those coverages only that you actually require. Unnecessary coverages could result into higher premium rate.
4) Your health is an important factor that determines your health insurance premium; so try to be in good health shape.
5) Avoid smoking. Premium for non-smoker is significantly lower than those who smoke.
6) Avail NCB (no claim bonus) discount accrued over the period, while renewing your health insurance policy. It will lower your premium.
7) Buy separate policies for your parents / in-laws; as premium is determined on the senior most members of the insured. Two separate policies will be cheaper that one bought for whole family.
8) Buy health insurance plan in your early age as age is one of the major factors on which premium is determined.

Harjot Singh Narula

Harjot Narula is founder and CEO of, 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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