What you need to look out before buying a Health Insurance .

For most of us, buying health insurance is a form of tax saving. We never think of health insurance as a solution to an emergency medical situation for us or our family. But the truth is, however harsh it may sound, it is most likely that you will have to use health insurance at least once in your life. It could be for your health concerns, for your parents, during pregnancy, or any other unforeseen and unwanted medical emergency that you might not be prepared for. Now, if it’s such an important part of being a responsible adult why not give some thought before buying one? Here’s what you need to look out for.

1. How’s the claim process?

For most of us, buying health insurance is a form of tax saving. We never think of health insurance as a solution to an emergency medical situation for us or our family. But the truth is, however harsh it may sound, it is most likely that you will have to use health insurance at least once in your life. It could be for your health concerns, for your parents, during pregnancy, or any other unforeseen and unwanted medical emergency that you might not be prepared for. Now, if it’s such an important part of being a responsible adult why not give some thought before buying one? Here’s what you need to look out for.

2. What’s the waiting period?

Insurance companies generally have a waiting period for pre-existing diseases of about 2-5 years. Keep that number in mind while buying a health insurance. It’s always better to buy a health insurance when you are young since there are fewer chances of you filing a claim and you can clear the waiting period easily.

3. Keep your family members in mind

Make sure you keep your family members, their age and their ailments. if any, in mind while buying a family health insurance. It is always wise to consider your family’s medical history too.

4. How much to invest?

You must take your age, income, and add-ons into consideration while choosing how much to invest in your insurance plan. The amount should be such, that it covers you in case an emergency occurs but at the same time, the premium should not be too exorbitant also.

5. Partner hospitals

Opt for insurers that have the maximum number of network hospitals and look out if there are some within your vicinity. At the time of medical emergencies, these hospitals will give you cashless service which means that the partner hospitals will directly settle the amount with the insurance company. Such service might come in handy especially to salaried employees.

6. Cumulative bonus

If you do not take a claim, the insurer offers a cumulative bonus in the next year. And this amount keeps accumulating year after year. You either get a discount in the premium or an increase in the sum insured or sometimes both. Do look out for what benefits you get on your policy.

During a medical emergency, your health insurance is your safest bet to get a lump sum amount of money in a small period of time. Make sure you put utmost thought into buying the correct health insurance policy.