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3 important things to consider while buying a health insurance policy


In most cases, people feel the need for insurance when an unforeseen circumstance has already happened and they pay out of their pocket, burning their savings.

Health insurance today is no more an option, it has been included as a mandatory part of financial inclusion by experts. 

Indraneel Chatterjee, Co-Founder, RenewBuy says, “Consumers usually overlook the need for health insurance, thinking that no critical health situation can affect them. In most cases, people feel the need for insurance when an unforeseen circumstance has already happened and they pay out of their pocket, burning their savings.” 

Covid 19 has been a testimony to the fact, that a health crisis can cripple not just the individual financial pyramid, but the economy of a nation. 

In order to protect the wealth created, a health insurance policy is a necessity for every individual. 

Chatterjee says, “For people who have never purchased a health insurance policy, it is never too late to start. What is most important is, that people should be aware of their particular needs and requirements, as per their medical history, family needs, stage of life and family income.” 

As a beginner, keep a note of these parameters before buying health insurance;

Claim settlements: One of the most important aspects of insurance is claim settlement. No insurance policy can serve its purpose, until and unless it provides proper claim settlement to consumers, followed by a smooth process. “The industry today is working collaboratively in the settlement of claims, wherein, traditional-digital models are coming together for faster and seamless settlements,” says Chatterjee. 

Experts say policyholders should also be aware of a few tips and tricks so that they can make claim settlements hassle-free for themselves. Note that, providing correct information, understanding all the policy terms and conditions and using digital insurance are some key consumer parameters for faster claim settlements. 

Waiting Period: There are policies, which cover the pre-existing diseases after a waiting period of one or two years, but some companies cover them only after four years. 

There are also specific waiting periods for specified diseases, hence, Chatterjee explains, “one should opt for a policy which provides least waiting period but gives a comprehensive health coverage.”

Policy terms and conditions:

Understanding policy terms and condition is significant for purchasing the right kind of policy. Experts say many consumers choose to read the terms and conditions superficially and make the biggest mistake in the process. It is during claim settlements that they get to know that they have missed out on some valid points. 

Chatterjee says, “It is also crucial to choose the right amount of sum insured, which should be followed by the age bracket and lifestyle.” Including family members in the policy; critical illnesses and new-age services like telemedicine, homecare, domiciliary and daycare also form important parameters in today’s date. 

He further adds, “It might be difficult for consumers to understand all the aforesaid parameters by themselves; hence, it is always advised to take the route of digitally-enabled insurance advisors, from the new age InsurTech aggregators, who can provide unbiased guidance to consumers to choose the best policy.” 

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