What to consider when you are looking for the Best Health Insurance Plans

Health insurance is an insurance cover that takes care of all the medical costs of the insured. Health insurance plans may either reimburse the insured for expenses incurred due to illness, or they may pay the healthcare provider directly.

There are several distinct types of health insurance, including critical illness insurance, family health insurance, and individual health insurance.

Choosing the appropriate health insurance plans is a critical component of financial planning and you must look at a few critical factors before choosing a health insurance plan. Some of them are enlisted here. Let us take a look –

Factors to Consider Before Determining Health Insurance Plans

1. Age of the Insured

Your age is a key element in setting up a health insurance plans premium. This is due to the increased risk of mortality, hospitalization, and medical costs that come with advancing age.

Resultantly, a 25-year-old would pay a substantially cheaper premium of about INR 2,414 per year, compared to a 50-year-old who could be required to pay a premium of INR 6,208 per year (for an amount insured of INR 3 lakh).

Additionally, some insurance providers also set an upper age limit of 65-80 years for those purchasing new health insurance policies because it becomes harder to predict risk factors and medical costs as people age.

2. Type of Plan Chosen

The kind of health plan you select will affect the cost of the best health insurance plans. For instance, a family floater plan typically costs less than an individual coverage because it is more likely that one person will get sick.

However, you must keep in mind that the premium for a family floater plan will be determined by the oldest member who is covered.

3. Sum Insured

Your health insurance plan rate will also be impacted by the sum insured amount of coverage you choose. A lesser sum insured can lead to a lower premium, and vice versa for a greater SI.

The sum insured is the maximum amount that an individual can claim from their insurer to cover their medical expenses.

4. Pre-existing Diseases

A person is more likely to incur greater hospital costs as well as medical expenditures if they have pre-existing medical illnesses that have a long-term impact on their health, such as diabetes, high blood pressure, or asthma. 

As a result, they will be required to pay a greater premium than similarly aged, healthy individuals. 

The severity of a pre-existing ailment as determined by a doctor will determine how much premium you end up paying for your health insurance plan.

5. Co-payment

A co-payment is the portion of the claim amount that you will be required to pay under your health insurance plan.

For instance, if your copay is 15%, your insurer would cover 85% of the claim's cost and you will be responsible for the remaining 15%.

In a sense, you are splitting the cost of your medical care with co-payment.

While the best health insurance plans require a co-payment, others give you the option to select your copayment amount. It is crucial to keep in mind that while a greater co-pay will lower your overall premium, you will be required to pay a higher sum for claims. However, if your co-pay is lower, your premium will be slightly higher, but your claim costs will be cheaper.

6. Add-On covers

You can choose additional coverage (also known as add-ons or riders) in addition to your current health insurance plan to increase its benefits for an additional fee. 

You must pay an additional premium if you choose to personalize your health insurance with add-on covers such as maternity cover, critical illness cover, personal accident cover, or AYUSH treatment cover.

7. Family Medical History

You run a higher chance of developing a condition like heart disease, cancer, Alzheimer's, etc. if your immediate family members (such as your parents or grandparents) have a history of it. Your premium rate will rise as a result.

8. Where You Live (Zones)

In terms of hazards, medical expenses, and other environmental elements like pollution, climate, etc., every geographical area will vary. 

In India, several cities are split into zones according to the cost of healthcare there. The greater the city's zone and your premium will be, the more the medical costs you will be required to incur.

As medical care in our nation continues to be mostly an expensive endeavor, health insurance gives consumers the much-needed financial security they need in times of medical emergency. 

India continues to have the lowest global health insurance penetration rate according to several reports. 

The situation might be improved, nevertheless, because of the government's emphasis on health programs, fresh initiatives like the Ayushman Bharat Yojana, and capital spending on healthcare.

It is, therefore, always advisable to compare health insurance policies before choosing one.

There are countless reasons to obtain health insurance, and if you have a family to support, you can purchase family health insurance to cover their medical requirements. 

However, the cost of health insurance differs for various people and depends on several aspects to obtain good insurance coverage. So, consider all the aspects thoroughly before choosing one.Health insurance plan