8 Tips to Keep in Mind before Buying Individual Health Insurance

Choosing the right health insurance provides you peace of mind and sense of security not only for yourself but for your family too. Below mentioned are 10 tips that will help you in getting a fair idea of what to keep in mind before buying an Individual health policy.

 

Tip 1 – You must have an individual health insurance even if your company offers you a corporate group health cover. There could be a possibility that your corporate cover will cease once you leave your job or retire. If one is suffering from a chronic disease, this becomes more important.

Tip 2–– Buy an individual health insurance as early in life as possible and definitely before you turn 40. As you are likely to make no or few claims in earlier stages of life. You can get the benefit of no-claim bonus and add up to the original coverage every claim-free year.

 

Tip 3 –While selecting a Sum Insured you need to keep today's costs in mind. If you are the one who is living in a small city then your aim of cover should at least be ranging from Rs.3 to 5 lakh. However, if you live in a metropolitan than your cover should not be less than Rs. 5 – 10 lakh.

Tip 4 – Buy a policy which gives you a restore limit or super top up just in case you fully utilize your sum assured. This will act as a buffer to cover some unforeseen critical illness which may be very costly to manage like cancer etc. For example a Rs. 5 lakh plan with Rs 5 lakh restore limit almost gives you Rs 10 lakh cover for critical illness at no extra cost.


Tip 5 – Buy a health cover which gives you lifetime renewability. Your aim is to have a health cover at older ages when you will have ailments and that is possible only if your policy offers lifetime renewability.


Tip 6 – Always buy your insurance through a reputed company which can to help you with claims. Remember if you are having a heart attack or have an accident you won’t be in a position to do it yourself or fight the insurance company if your claim is rejected without proper justification. At that time, an online broking company will act as a savior.

Tip 7– All health plans have a waiting period for pre-existing ailments. Please see what the waiting period is in the plan that has been suggested to you. Waiting period generally extends from 2-5 years varying from company to company. It is always advisable to opt for a company that offers minimum waiting period. Also there are some companies which offer you coverages with lifetime exclusions. Exclude such companies from your options.

Tip 8 – Never lie and hide information in your application form. If you have an ailment please make sure you mention it. Today in most of the plans all pre-existing diseases also get covered after 3 to 5 years of waiting period depending upon the plan.


Some small additional things that you must keep in mind. Make a list of preferred hospitals where you will like to be cured. Does the plan offer cashless in those hospitals and are those hospitals covered in the insurers list of network hospitals. The reason I have not put this in the main rules is because as of today most of the insurers covers most of the good hospitals, so this should not be a major challenge.