How to Select the Best Health Insurance Policy in India?

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Understand Your Medical Needs

– Family size and ages (young, senior citizens, kids). – Existing health conditions or family medical history. – City of treatment (metro vs non-metro hospitals).

Check Coverage Amount (Sum Insured)

– For metros, a minimum of ₹5-10 lakh is recommended for individuals. – For families, ₹10-20 lakh floater plans are better.

Compare Network Hospitals

– Choose insurers with a large cashless hospital network near your location. – Check if your preferred hospitals are on the list.

Look at Waiting Periods

– Pre-existing diseases usually have a 2-4 year waiting period. – Maternity and specific illness waiting periods also vary by plan.

Room Rent Limit & Sub-Limits

– Some plans have limits on room rent (e.g., 1% of sum insured). – Higher room category may lead to higher out-of-pocket expenses.

Co-Payment Clause

– Some policies require you to share costs (e.g., 10-20%). – Prefer zero co-payment policies if budget allows.

Add-On Benefits

– No Claim Bonus, Restoration Benefits, Critical Illness cover, OPD cover. – Check if these are included or available as add-ons.

Premium vs Coverage – 

– Don’t choose the cheapest plan; compare coverage, benefits, and claim settlement ratio.

Claim Settlement Ratio

– A higher claim settlement ratio (above 95%) indicates faster, hassle-free claim processing.

Tax Benefits

– Premium paid for health insurance is eligible for tax deduction under Section 80D of the Income Tax Act.

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