Money9 Helpline | Things to know before buying health insurance

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Financial security against health ailments should be your top priority in the current times. Amid the Covid-19 pandemic, the health ministry recently said that more than 70% of the deaths reported so far have occurred due to comorbidities. The data stresses the fact that a well-suited health insurance should a part of your overall financial planning now.

In a recent episode of Money9 Helpline, many callers had persistent doubts about how to identify the best health insurance plan from a sea of options.

“My aunt is 71-years-old and suffers from neurological problems, poor vision, and high blood pressure. I want to purchase a health insurance policy for her from a private company. What factors should I consider while finalizing insurance?” Siboli Banerjee from Kolkata asked.

The purpose of health insurance is to act like a financial shock absorber that prevents your personal savings from the impact of expensive medical costs.

“These days insurance companies provide the option of full coverage. For your aunt, who is suffering from three illnesses, you can choose from the senior citizens’ plans like Start Health’s red carper or New India’s senior citizen plan. Max Bupa also has a senior citizen plan. In a senior citizen health insurance plan, if the entry is after the age of 65 years you will be charged a co-payment,” Nisha Sanghavi, founder at ProMore Fintech said.

Health insurance is equally important for salaried employees living in metropolitan cities as they tend to be frequently exposed to pollution, dust, oily and junk food, less exercise, etc. Hectic work life often leaves you with little or no time to build a good work-life balance. Therefore, health insurance acts as your safety guard for an unforeseen medical emergency.

“If you’re single and live in a metro city, Rs 10 lakh health cover seems alright but if you have a family then Rs 20 lakh is advisable,” Sanghavi asserted.

She advised Max Bhupa’s ‘Reassured Plan’ which is quite affordable as compared to other options. But one must carefully understand their prerequisites before opting for any plan. This is the only way to understand whether a particular coverage is enough for you or not.

Meanwhile, many people stay under the impression that an insurance cover provided by their employer is sufficient to cover the entire family’s medical expenses. However, you must always have a standalone policy. This is because health facilities are getting costlier with each passing day but the probability of increasing the insurance cover provided by your employer is less.

To be on the safe side, purchase your own health insurance policy basis your specific needs. This will provide protection, flexibility and easy access to the claim when it’s really required.