Falling sick or getting injured is never planned. However, paying huge hospital bills should not be part of this bitter surprise. With rising medical costs and unexpected health problems, health insurance is no longer an extravagance. It is a must-have for every Indian household today.
But the catch is - with so many insurance companies, plans, and features - all claiming to be the best - how do you know which is truly the best?
In this blog, we will help you crack the code. From what to look for in a good health plan to the best options available, we will discuss it all. So, without further ado, let's dive in!
The Rising Need for Health Insurance in India
Healthcare in India is becoming increasingly expensive, making health insurance a necessity. Let's take you through some recent stats:
- In 2024, the cost of medical treatment in India surged by 14%. You will be shocked to learn that it is the highest number among all Asian countries.
- Around 50% of all healthcare expenses in India are borne out of pocket. In other countries, this figure is only about 20%.
- As of 2021, only 37% of Indians had health insurance. It means more than 40 crore people in India have no health insurance coverage at all.
- In 2024, the Government of India extended its healthcare programme to ensure INR 5 lakh health insurance cover every year to people above 70 years of age. This new plan benefits around 6 crore senior citizens of the country.
- Diseases like diabetes, heart problems, and cancer are increasing in India. These illnesses can be serious and expensive to treat, underscoring the importance of having insurance.
Why is Choosing the Right Health Insurance Plan Crucial?
Not every health insurance plan is the same. So are your insurance needs. Right? Hence, the one-size-fits-all concept does not fit here. Some plans may not cover your needs. Others may have hidden conditions. If you choose the wrong plan, you may end up paying a lot out of your pocket even after having insurance. However, the right plan will:
- Cover all your insurance needs
- Don't stress your budget
- It is easy to understand
- Offer seamless customer assistance during emergencies
Therefore, take your time, research your options, and then choose the plan that suits you and your family.
Key Factors to Consider Before Buying Health Insurance
Refer to the table below to understand the factors to check before buying a health insurance plan:
|
Factors to be Considered |
Meaning |
Why Is It Crucial? |
|
Coverage Amount (Sum Insured) |
The total amount your insurance company will pay for your treatment in a year. |
For example, if your plan's sum insured is INR 10 Lakhs, your policy will pay hospital bills up to INR 10 Lakhs in one year. Make sure to choose a sum insured that is enough to cover hefty hospital bills. |
|
Network Hospitals |
Hospitals that have a tie-up with the insurance company. |
Visiting network hospitals helps you get cashless treatment. It means your insurer pays directly to the hospital. You do not have to pay anything upfront. |
|
Pre- and Post-Hospitalisation Cover |
It includes costs like tests or medicines before and after being hospitalised. |
These extra costs are also paid by your insurance company. |
|
Waiting Period for Pre-existing Diseases |
It is the time before the insurance starts covering your old health problems. |
If you have any pre-existing health conditions, make sure to choose a plan with a shorter waiting period. |
|
Claim Settlement Ratio (CSR) |
It is the number of claims the company settles out of every 100 claims filed. |
A CSR above 90% implies the company is reliable. |
|
Premium Amount |
The yearly fee you pay for the insurance. |
Choose a plan that gives good coverage at a reasonable price. |
|
Add-ons and Benefits |
It covers extra features like check-ups, maternity cover, etc. |
Choose add-ons that are useful for you and your family. |
Types of Health Insurance Plans in India
There are different types of health insurance plans available in India. Let’s take a quick look at the prominent ones:
- Individual Health Insurance: As the name suggests, this plan covers only one person. Make sure to choose a coverage amount that is enough for you.
- Family Floater Plan: This type of plan is designed to cover the entire family, including parents, spouse, and kids. The total coverage amount is shared among the insured individuals. It is often more affordable than buying separate plans for each family member.
- Senior Citizen Health Insurance: These are special plans for people above 60 years. They usually have higher premiums because older people may need more treatment.
- Critical Illness Plan: This plan provides a lump sum amount if you are diagnosed with a serious illness like cancer, heart attack, or kidney failure. It helps manage big treatment costs.
- Top-up Plans: If you already have a basic plan but want more coverage, you can buy a top-up plan. It is one of the best ways to increase your insurance cover.
- Maternity insurance plan: It is a women-centric health cover. It covers expenses related to prenatal and postnatal care, along with the delivery and ambulance costs. With most insurance providers, these plans start after a waiting period. Therefore, you should get it as soon as you get married or start thinking of family planning. You can also add it to your base plan.
How to Compare and Buy the Best Health Insurance Online?
Here is how you can compare multiple health insurance companies online:
|
Step |
What to Do? |
How does it help? |
|
Go to a reliable insurance broking online portal |
Compare plans, premiums, and features easily in one place |
It will help you understand the features of different insurance policies and decide on the one that fits your insurance needs and budget. |
|
Read Customer Reviews |
Check reviews and ratings from real users. You can find these on Google and various forums. |
It will help you understand the company’s service and claim support ratio. |
|
Check Claim Settlement Ratio (CSR) |
Look for CSR on IRDAI or comparison websites. |
It shows how reliable the company is when it comes to claim settlement. |
|
Use Online Calculators |
Enter your age, family size, and city on the calculator tools |
It will help you know how much coverage you need, preventing over- or under-insurance. |
|
Buy from Trusted Platforms |
Purchase from official websites or reputable apps after comparison |
Make sure details are correct and all terms are understood. |
The Bottom Line
The best health insurance depends on your age, health condition, family size, and budget. The following are the most reliable health insurance providers in India:
- HDFC ERGO
- Star Health
- Niva Bupa
- Tata AIG
- ICICI Lombard
- Care Health Insurance
When it comes to buying a health insurance policy, you need to be proactive. So, don’t wait until you fall sick. Buying a health plan early can help you save money and avoid waiting periods. So, take your time to compare, understand your needs, and pick the best plan to ensure comprehensive coverage.
FAQs
1. How much 'sum insured' would be enough for a family of 4?
A minimum of INR 10 to 15 lakhs is a good amount for a family of four, especially if you live in a metro city.
2. Is it safe to buy health insurance online?
Yes, it is safe and easy to buy health insurance online through trusted websites.
3. What if I already suffer from a health condition?
Many health insurance plans cover pre-existing conditions after a waiting period. Make sure to look for plans with a short waiting time and clear terms and conditions.
4. Is health insurance expensive?
Although the cost of a health insurance plan depends on the extent of coverage and your age, buying early is likely to be more affordable. Plus, it may give more benefits over time. At the end of the day, nothing can be as expensive as your health and well-being.
5. Can I avail of tax benefits for buying health insurance?
Yes, you can save tax on the premiums under Section 80D of the Income Tax Act.
