Step-by-step Guide to Health Insurance in India

People have woken up to the importance of buying a health insurance plan as medicine costs have increased beyond imagination. At the same time, diseases have become a frequent phenomenon. When such frequent diseases land us in a hospital, the only way to meet the hospital bills without incurring any financial strain is through a health insurance policy.

While you might also feel the need of a health insurance policy, do you know the correct steps to buy one?

Here is a step-by-step guide to buying health insurance in India:

Step 1 – choose the type of health plan you would need

First, we stick with the basics. Selecting the correct health plan is the first step. There are various types of health plans as given below:

Indemnity Plans – these plans pay the actual medical expenses incurred on treatments. These plans are further sub-divided into the following categories:

Normal health plans – these are your normal mediclaim plans which cover you against medical contingencies.

Senior citizen health plans – these plans are specifically designed for senior citizens and provide coverage to individuals aged 60 years and above.

Disease-specific health plans – these health plans cover individuals suffering from a specific disease who might otherwise be denied normal health insurance plans. Some common disease-specific plans include health plans for diabetics, health plans for cardiac patients or health plans for dengue.

Top-up and super top-up plans – these plans are meant to enhance your health plan coverage by providing additional Sum Assured at lower premiums. These plans have a threshold limit called ‘deductibles’ and claims beyond the ‘deductible limit’ are paid by the plans.

Fixed benefit plans – these plans pay a specified lump sum benefit on claims irrespective of the actual medical costs incurred. There are two types of fixed benefit plans:

Critical illness plans which pay a lump sum benefit if you suffer from a covered critical illness

Hospital cash plans which pay a fixed benefit per day of hospitalisation.

Among the various types of health plans, you should choose the best plan as per your requirement as the first step in buying health insurance in India.

Step 2 – deciding on the members covered

A health insurance policy should not cover only you. It should also cover your family members too as their healthcare costs are also your responsibility. All health plans come as individual or family floater health plans. Individual plans cover only you while family floater plans also cover your entire family. So, ascertain which plan would be better and if you choose family floater plan, choose the members who are to be covered.

Step 3 – comparing the available plans

After you have decided on the type of plan and the members covered, look for available plans online. The online platform lets you search, compare and then buy the most suitable health insurance plan based on the cover and the comparative premium rate.

Step 4 – filling up the proposal form

Once you have selected the best plan online, the next step is filling up the health insurance proposal form online. You should clearly and truly state the required details of yourself and your family members (if covered) in the form.

Steps 5 – go for medical tests, if required

Health insurance plans require you to undertake a pre-screening medical check-up if you or the eldest member covered are beyond a certain age (45 years usually). Don’t skip this test as it helps the insurance company in determining your health risk and grant proper coverage. Co-ordinate with the insurer and take the tests.

Steps 6 –pay the premiums

After you have filled up the proposal form and taken the required medical tests (If any), pay the premium. If buying online, you can also pay premiums online easily.

Step 7 – receive the policy bond

After the premium has been paid and the policy is underwritten by the insurer, the policy document is issued. You receive a soft copy and a physical copy of the policy. Read this policy document to ensure all the details are properly recorded and you understand the benefits and coverage. In case of any discrepancy in the document and if you find that the policy is not satisfactory, you can cancel it in the free-look period granted by the company which is usually 15 days or 30 days.

Step 8 – avail the cashless card

Your health insurance policy provides you with a cashless health card which is a proof of your policy and when presented on hospitalisation helps you avail the cashless facility. Ensure that the policy document contains the cashless card and keep the card handy at all times.

So, these are the basic steps of availing health insurance in India. Follow these steps and buy a policy of your choice easily and without any ambiguity.