Though insurance whether life or health insurance is still not on the buy list of several individuals but as knowledge and awareness of these products is increasing, people are slowly and gradually as per their longer term financial needs have come to hunt for the best plans for them.
And herein we'll come out with points on how to select the best insurance plan and what should decide your purchase:
1. Evaluate your premium paying capacity:
In a general case, health insurance comes as a recurring expense i.e. the policy has to be renewed every year and premium has to be thus paid against it. And so in order that the policy keeps running, you need to carefully evaluate the amount, you can shell out towards health insurance premium. At the start of your career, with limited funds in hand you can always secure a limited coverage basic health plan and later in life can get on to increase health coverage for yourself and family.
2. Need for comprehensive healthcare plan arises in case of high-risk category:
The assessment of risk in respect of contracting a particular ailment in future course of time for the potential health insurance plan customer is done by the insurance company basis the family health record. And if he or she is judged to fall in the high-risk category then one should definitely go for a comprehensive health cover.
3. Choice of hospital for treatment is also another determinant:
As the treatment charges even for the same disease vary across hospitals, your choice of hospital in which you opt for the treatment in case of some medical ailment will be factored in to decide the health insurance cover or sum insured value you need.
4. If availing tax deduction is your only criteria to buy health insurance plan:
While it is important to have health care plan in your overall financial portfolio, if you still do not score its importance and consider buying the same only for tax saving, in such a case do not for sure go for the comprehensive plan offering as that comes at a higher cost. Instead, here the choice of your health insurance plan be determined by the tax deduction amount you wish to avail via the policy.
5. Group health insurance
Group health insurance provided by employers do not extend health coverage in cases when the employee is laid off or in other such circumstances. So, while for professionals and other business class people, individual health insurance plan is the only choice, salaried class need to include it in order to supplement the existing the group health insurance cover or as a buffer.