Tips & Tricks For Choosing The Most Appropriate Health Insurance

Health insurance

Health insurance has become a necessity for every individual. A single visit to the hospital can drain your savings and affect you emotionally and financially. You should assess your needs and finalise a health insurance plan soon. 

Here are some tips to follow while choosing a family health insurance policy:


It is imperative to choose a health insurance plan that suits the needs and requirements of your family. A health insurance policy offering coverage against a wide range of medical expenses, including hospitalisation expenses, daycare expenses, ambulance charges, and maternity expenses, would be an ideal option. 

Make sure to read the insurance policy terms and conditions, and don’t go for a plan offering more than the required coverage to avoid increased premiums. 

Lifetime renewability

It is a clause in the health insurance policy that gives policyholders the right to renew their policy lifelong without any age limit or other restrictions. You must opt for a family health insurance policy with a lifetime renewability option to continue enjoying the benefits of the same plan even after crossing the specified age limit. 

It is best for senior citizens as it promises effective medical treatment without the hassle of buying a new policy with age which gets costlier as they age. 

Sum insured

It is the maximum amount paid by the insurance providers to the policyholders in case of any damage or loss suffered by them. Choosing an adequate sum insured amount is recommended while purchasing a health insurance plan for your family. 

The higher the sum insured, the higher will be the insurance premium. A lower sum insured will mean a lower insurance premium. But insufficient coverage, and you might end up paying from your pocket. You should consider the number of family members that need to be covered and then decide on the sum insured amount accordingly. 

Network hospitals

A network hospital has an agreement with the insurance provider to offer a cashless treatment facility to the policyholder. You should always seek a family health insurance plan from an insurer with many network hospitals in your neighbourhood. 

Waiting period

A waiting or cooling period is a pre-decided period during which a policyholder cannot file an insurance claim after buying the policy. Most health insurance plans have a waiting period of 2 to 4 years. If you are suffering from pre-existing diseases, you should invest in a family health insurance plan with a shorter waiting period to enjoy the insurance benefits early on as required.

Claim settlement ratio

It refers to the number of claims settled by an insurer out of the total claims received during a financial year. The claim settlement ratio indicates the insurer’s efficiency in settling health insurance claims. You should choose an insurance provider with higher CSR for a quick and smooth claim settlement process. 

Co-payment clause

It is the percentage of the insurance claim paid by the policyholders themselves under a health insurance policy.  The insurance provider pays the remaining claim amount. The co-payment percentage generally varies from 10% to 30%. 

You should try to select a family health insurance plan with no co-payment clause. However, a co-payment option can lower the insurance premium and prevent a policyholder from raising unnecessary claims. So, pick a plan that suits your needs and pocket. 

Exclusion list

Exclusions refer to medical conditions not covered under a health insurance policy. Most common exclusions include pre-existing diseases, alternative therapies, cosmetic treatments, dental treatments, mental disorders, and STD treatments. You must check the exclusion list of a family health insurance plan before buying it to avoid any surprises during claim filing. 


The insurance providers usually offer discounts on premiums for purchasing a long-term policy, or adding more members to the coverage. You should look for the discounts provided while buying a family health insurance plan to save the maximum on the premium.

Add-on cover

It is the optional coverage that a policyholder can avail of with the base health insurance policy by paying an additional premium. Some are OPD cover, maternity health insurance cover, personal accident add-on cover, newborn baby cover, and so on. Always check the available add-on covers while buying a health insurance policy for your family to enjoy all-inclusive coverage benefits.

Room rent limit

It refers to the maximum coverage offered by the insurer if a policyholder gets hospitalised. You should check if the policy covers a shared hospital, semi-private, or private room. Opting for a family health insurance plan with a higher room rent limit is advisable to avoid out-of-pocket expenses. 

In conclusion

Investing in a health insurance plan can safeguard you and your family during medical emergencies. You can consider the tips mentioned above and make an informed decision. 

Leave a Reply

Your email address will not be published. Required fields are marked *