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Choosing Health Insurance: Tips to Guard Against Major Costs

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Jan 24, 2025 06:31 PM IST

The ideal health insurance prevents us from the financial strain of hospital bills and gives us the freedom to choose the best healthcare facilities available. 

Introduction

We can plan our future but we don’t have much control over many things that can happen. Illnesses and injuries are part of that unpredictability. However, we can always stay prepared by buying a health insurance policy with a wide scope of coverage. Choosing the right strategy isn’t easy, given the market has no dearth of insurers selling different plans. Also, one must make sure the benefits are worth the premium they are paying. So, whether you are buying a health plan for the first time or someone looking to reevaluate it during renewal, there are a few factors you should consider to avoid paying extra. Let’s learn more about it.

Explore various health insurance options to make an informed choice
Explore various health insurance options to make an informed choice

Tips to Guard Against Major Costs in Health Insurance

If you are worried about the premium of health insurance, here are some tips that will help reduce the cost of health insurance:

  • Research and compare

Before buying health insurance, make sure you research the various plans available and make a comparison of the quotes offered by different insurance providers. Never buy health insurance in a rush or blindly buy what the insurance agent suggests. Agents will push you for policies where they get a substantial commission. It is, therefore, advisable to spend some time researching as this will help you get a policy with the best price.

  • Buy health insurance early

When you are young with no health issues, the premium will be lower as the probability of filing claims is low. As you age, the health risks increase, and the likelihood of filing claims also increases. Hence, insurance providers charge higher premiums to cover the risk.

  • Stay healthy and utilise the NCB

When you stay healthy and don’t raise a claim in a policy year, the insurer will reward you with a No-Claim Bonus (NCB). This is a discount on the premium or increase in the sum insured at no extra cost, which can help you save on costs.

  • Avoid raising small claims

Avoid filing claims which are affordable. This way, you will accumulate your NCB and earn a good discount.

  • Check deductibles

A deductible is the portion of the claim amount you have to pay from your pocket while the insurer pays the rest. The premium will be low if you choose a high deductible, but you must be prepared for more out-of-pocket expenses.

  • Riders

Riders enhance your health insurance coverage but choose them wisely, as they incur additional costs. Buy only essential add-ons.

  • Preventive healthcare benefits

Some policies offer free annual check-ups, wellness programmes, or vaccinations, which can reduce out-of-pocket expenses.

  • Take advantage of tax benefits

You can reduce your tax liability by claiming a deduction on the premium paid towards health insurance.

How to Choose a Health Insurance Plan in India?

With so many health insurance plans in the market, choosing the one that aligns with your needs and budget can be overwhelming. Here are some tips that you must keep in mind while buying health insurance:

  • Choose a plan that offers comprehensive coverage, including hospitalisation, pre- and post-hospitalisation, daycare treatments, domiciliary hospitalisation, emergency ambulance cover, AYUSH treatments, etc.
  • Select a sum insured that is adequate enough to meet your healthcare needs.
  • Choose plans with a lower waiting period or waiting period waiver. All insurance policies impose a waiting period for pre-existing ailments, specific procedures, maternity coverage, etc.
  • Choose an insurance provider with a wide network of hospitals for cashless health insurance.
  • Go for a provider with a high claim settlement ratio (CSR). A CSR is an indicator of the insurer’s financial capability to settle claims.
  • Check the credibility and reputation of the insurance company.

Ensuring Claims Aren’t Rejected

It can be disheartening when you file a claim and it gets denied. There are several reasons why claims get denied and it is important to be aware of these reasons:

  1. If the medical condition for which you have raised the claim is not covered in the policy.
  2. If the claim is made during the waiting period. Remember, certain conditions have a waiting period, and you must complete the period to get compensation. For instance, pre-existing ailments have a waiting period of 1 to 3 years, while specific procedures have a 2-4 years waiting period.
  3. If the hospitalisation was not necessary or considered unauthorised.
  4. If you have not disclosed a pre-existing condition, such as diabetes at the time of purchasing the policy and the treatment was related to diabetes. In such cases, the claim would be rejected.

Conclusion

To ensure you choose the best health insurance policy, you must first assess your requirements. This will help you select a plan that offers comprehensive coverage, provides maximum financial protection, and minimises your out-of-pocket expenses. It is also important to carefully read the policy terms and conditions before making the purchase.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

Note to the reader: This article is part of Hindustan Times's paid consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.

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