Last Updated on February 26, 2020 by Gopal Gidwani

These days a lot of people lead a sedentary lifestyle and consume a lot of unhealthy foods without even realizing it until they fall prey to life-threatening diseases. Additionally, medical costs are also increasing with each day. It is not possible for everybody to afford paying bills for surgeries or other major treatments. Here’s where health insurance comes into the picture. It acts as a great financial backup in times of medical emergencies. There are mainly two types of health insurance policies, individual and family health insurance.

Following are the factors one must consider before purchasing a health insurance policy:
1) Research your insurer
Before engaging with any insurance company, it is advisable that you know them well beforehand. The way your insurance company settles claims, the kind of coverage they provide, their customer service, etc., are very important questions for you to answer before sealing the deal. You can ask people about their past experiences with various insurance companies or even look at online reviews. Likewise, understand what is health insurance as well so your expectations and requirements can be met successfully.

2) Look into the claims process
Most importantly, the claims process of the insurance company must be smooth and hassle-free. If the process is long and tedious, drop the idea of buying and look for another suitable plan.

3) Go through the policy document
If you’re unaware of what your insurance policy covers, you will have a hard time settling claims. Look out for the features your insurer is providing you and compare them to your health needs. Know your policy, i.e. read the inclusions as well as exclusions. A good health insurance policy must cover all major diseases.

4) Understand your needs
Before you choose the coverage amount, consider important factors such as the costs of healthcare, inflation, etc. It is observed that medical expenses in urban areas are much higher as compared to rural areas. You might want to purchase coverage for your loved ones as well. In that case, go for a higher coverage amount.

5) Know your premium
The cost of the policy has to be one of the important factors to consider while buying a health insurance plan. To know how much premium you have to pay for the coverage, you can calculate it using an online health insurance premium calculator.

6) Look into the exclusions
It is vital for you to know what your insurance policy does not cover. If the policy does not provide coverage for an illness that you have chances of contracting in the future, then you should look for another plan.

7) Cashless facility must be included
One of the most important features of a health insurance policy is its list of network hospitals. If you are admitted in a network hospital, you can avail cashless treatment, i.e. the insurer will directly compensate the hospital for the treatment.

8) Renewal policy
To keep your health insurance policy active, it is imperative that you renew it from time to time. However, while purchasing a policy, see if the renewal process is less complicated and can be done online in a few clicks.

Note to remember
A basic health insurance policy will not be enough to cover the treatment cost of a critical illness. Hence, you should opt for critical illness insurance to cover yourself against any critical illness. Especially if you’re in your old age, it becomes essential for you to have this policy. You can either opt for it as an add-on coverage in your existing plan or buy it as a standalone policy.