Health Insurance

Things to Consider Before Buying a Health Insurance Policy in India


Having a health insurance policy can ensure that you receive timely medical treatment and secure your money and assets. For a health policy, you need to pay a small amount of money for every policy period. With a health insurance plan in place, you are equipped to take care of your and your family’s medical requirements, and a health policy can help you afford better quality care in hospitals. In this way, you do not have to be worried about medical inflation. But before buying a health insurance policy in India, it is crucial to consider a few points.

What Is a Health Insurance Policy?

A health policy is a contract of insurance between an insurance provider and the person who buys the policy. It acts as a financial safety net for unplanned medical costs. The policyholder must pay a premium for a certain amount of time to get this health insurance. A health insurance plan is considered essential to avoid draining your savings. It should also cover the high costs of surgical procedures and consultations. In addition, there are other benefits to getting health insurance plans, which are discussed below.

Reasons for Buying a Health Insurance Policy 

These are 6 key reasons why a health insurance policy is beneficial:

  • Extended DurationYou do not have to worry about the duration of health insurance plans since you can continue to extend your health policy until the upper age limit. If you buy a health insurance policy, you can continue to use it for your medical expenses for as long as required. This allows you to benefit from having a health policy for a long time.  
  • Tax BenefitsThe premium for a health insurance policy gives you a tax credit. It may be deducted from your gross income under Section 80D. Hence, the premium lowers your tax bill. If you buy health insurance for your elderly parents, the maximum deduction is Rs. 1,00,000. You may also opt for the health policy for yourself to get tax benefits. However, you must avoid paying your premiums in cash, as this will exempt you from tax benefits on your health insurance plan
  • Free Look Period Find out if your health insurance policy provides you with a “free look” period. During this time, you can carefully read the policy document to better understand the features and advantages of your health insurance plan. If you decide that the health policy is not what you need, you can cancel it and get a refund for the plan you have already paid for. 
  • Serious Illness If you or a family member is suffering from a serious illness that requires excessive or prolonged treatment, a health insurance plan can be beneficial. Getting a health insurance plan can save you from massive expenses for the treatment of serious health conditions.
  • Coverage for More Services
    New health insurance plan include daycare, OPD fees, and full hospital expenses. These can help you pay for services like operations and ambulances. However, it depends on your level of coverage. Most plans also include maternity benefits, which could be important for working women. Furthermore, the child also gets protection, and you will not require an additional premium for this.  
  • Start Young When you get a health insurance plan early, it comes with many advantages because it is more affordable. Since you are younger and healthier, you have the option of purchasing extensive coverage. Hence, you can get complete coverage even later in life when you are suffering from a serious illness. 

What to Consider Before Buying a Health Policy

Before choosing a health insurance policy for you and your family members, you must consider these 6 factors:

  • Cashless ServicesThe cashless claim settlement of a health insurance plan can handle any medical emergency and also covers an extensive network of hospitals.
  • Premium CoverageThe health insurance provider’s premium is usually based on your age. Therefore, you must find the right balance between premium and sum insured coverage.
  • Waiting Period
    Before getting a health policy, ensure you understand the waiting time clause. Health insurance plans usually have a waiting period of 30 to 90 days and certain health conditions have specific waiting periods. During this waiting period and in emergencies, you cannot submit any claims. So, find a health insurance policy with the shortest waiting period. 
  • Lifelong Renewal
    Before purchasing a new insurance plan, a medical exam may be required. Obtaining insurance becomes more challenging as you age. As the perceived risk rises, there is a chance that the premium amount will also rise. Therefore, make sure that your health policy allows for long-term renewal. 
  • Claim Settlement ProcessWhen paying health claims, reviewing the health policy wording is essential. Check the company’s claim settlement and settlement percentage before buying a health insurance plan. You can also go through client reviews and pick an insurance company that can quickly resolve your claim. 
  • Inclusions and ExclusionsAlways look over a health policy’s inclusions and exclusions. The rules for this may vary among insurance companies. Make sure the charges for your hospitalization are included in your policy. Pre-existing diseases, diagnostic charges, and check-ups must be present in your plan. Health insurance plans come with add-ons to increase coverage. This can happen if you know all the exclusions and inclusions in advance.


The cost of healthcare is rising faster than ever. Thus, you should include a health insurance policy in your financial strategy. Many insurance providers now offer a wide range of benefits, including low premiums and high coverage. Before getting a health insurance plan, make sure you are familiar with all these features and choose a plan that fits both your health condition and financial situation. For more articles like this one on health insurance plans, visit Piramal Finance and get access to more information and guidance on selecting a good health policy.