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Why and How Should You Compare Health Insurance Plans?


As we all know, maintaining good health is the priority to lead a happy life.  Despite keeping up a healthy lifestyle, one cannot have complete control over his/her health. Unexpected and life-threatening diseases can happen to you at any time, irrespective of your age. Therefore, it is important to be covered under a health insurance plan to avoid financial difficulties and maintain the desired standard of life if anything unfortunate happens to you.

Why and How Should You Compare Health Insurance Plans?

As the specifications, exclusions, and inclusions vary among different insurance providers, it is imperative to compare health insurance plans across various providers and then choose the best health insurance plan as per your requirement. 

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You might have doubts and questions on your mind, such as, how to compare health insurance plans, how to choose the best one for yourself, etc. Find below a detailed guide to get answers to your questions: 

  1. Age Limit

As you move towards old age, the chances of falling ill and catching diseases increase, even if you have been healthy throughout your young age. At that time it is difficult to arrange finances for treatment and household expenses. Therefore, it is advisable to compare health insurance plans and choose one with the maximum age limit so that you can avail of the benefits when you need them the most. Why and How Should You Compare Health Insurance Plans?

  1. Waiting Period

You cannot apply for the claim right after signing up for health insurance. There is always a pre-defined waiting period attached to every health insurance policy, the duration of which varies from provider to provider. Also, it depends on the specifications of the policy and your health record:

  1. Initial Waiting Period: After you have signed up for a health insurance policy, you cannot apply for the claim during the initial 30-90 days. 
  1. Pre-existing Ailment: If you are diagnosed with any pre-existing ailment, this waiting period might range from 2 to 4 years.

Therefore, it is necessary to compare and check the waiting period before signing up for an insurance policy.

  1. Network Hospitals

To avail of the benefit of a cashless claim, it is important to check the list of network hospitals across different insurance providers and compare health insurance plans.  Thereafter, choose the insurance provider with the maximum number of network hospitals to have a number of options for the treatment and to settle the amount without getting involved in the transaction.

  1. Claim Settlement Ratio

It depicts the percentage of claims settled by the insurer in the past. To ensure that you get the claim settled well in time after applying, you can check their record and the claim settlement ratio. This will give you a fair idea of their credibility and the promptness of disbursing the claim amount to avoid difficulties later.

  1. Sum Insured

It is one of the most important factors to be considered before applying for a health insurance plan. With the rising medical cost and hospitalization expenses, it is necessary to check the sum insured and whether you can increase the amount at the time of renewal or not.

  1. Rider Options

A basic health insurance policy might have a few exclusions, for instance, no compensation for critical illness. To increase the coverage, you can choose rider options, such as critical illness rider, to increase your plan’s coverage. A few insurance providers even offer you the option of adding these riders at the time of renewal. Therefore, compare health insurance plans and opt for one that offers maximum rider options at a reasonable rate and allows you to add them later.

  1. Insurance Co-payment

This is one of the most differentiating factors to consider while choosing the best health insurance plan. If this condition is there in the insurance plan, you (insured) need to pay fixed allowable expenses at the time of claim settlement, and the insurer will pay the remaining amount. For instance, If the policy reads, ‘a 20% co-pay on all claims’, then you will have to bear 20% of the expenses, and 80% will be borne by your insurer. 

  1. Limit on Specific Medical treatments

Sometimes, to reduce the spending due to overcharging by the hospitals, the insurance provider puts a cap on the expenses of medical treatment of a few diseases. Therefore, it is important to check through their terms and conditions for any such caps.

  1. Policy Renewal Charges

While you compare health insurance plans, it is advisable to check policy renewal charges. The insurance provider charges an extra amount while renewing your policy every year, which is usually based on the sum insured you claimed in the following year. 

  1. Discounts and Bonuses

In case you do not file any claim during a particular year, you will be eligible for discounts and bonuses at the time of renewal. If you do not apply for any claims for a number of years consecutively, you might be eligible for additional benefits and services. These benefits are usually mentioned in terms of the policy; therefore, it is important to compare discounts and bonuses across different providers.

  1. The Credibility of Insurance Company

It is advisable to be aware of the insurance company’s credibility, so that you are confident of speedy claim settlement in case anything unfortunate happens. To estimate their financial strength, you can check through their profile, credibility score, read through customer reviews, etc., before making your final choice. 

Benefits of Comparing Health Insurance Plans Online | Why and How Should You Compare Health Insurance Plans?

Find below the benefits of comparing health insurance plans before making your final choice:

  1. Free Quotes using Premium Calculator

By just entering your details, you can check quotes and coverage multiple times for free. Thereafter, you can make a fair comparison and choose the right health insurance plan according to your specifications. This way you will be able to choose a suitable and economical option. 

  1. Saves Time and Money

When you compare health insurance plan online, you get quotes instantly, and you need not take an agent’s or insurance executive’s assistance. Also, while applying online, you need not fill a number of forms, and it is less expensive than offline insurance. Ultimately, you can save considerable cost and time while choosing the best health insurance plan. 

  1. Right Coverage and Services

Coverage and services vary across the insurance providers. Usually, these are explicitly mentioned in the terms and conditions. Therefore, while you compare health insurance plans online, you get the liberty to thoroughly check through all the inclusions and exclusions of the policy and choose the health insurance plan with maximum coverage and services depending on your chosen sum assured.

  1. To Get Affordable Premium

A similar health insurance plan might not be appropriate for every individual due to the varying financial capacity and medical specifications. After analyzing your requirements and evaluating your financial capacity, you can compare health insurance plans online to choose one with an affordable premium.

Conclusion |Why and How Should You Compare Health Insurance Plans?

Due to the variation in needs of the clients, credible insurance providers like TATA AIG offer customized plans based on the requirement and financial capacity of the client. Therefore, before choosing the best health insurance plan, research and compare health insurance plans to secure your finances and health.

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