10 Important Points To Select The Best Health Insurance Plan

10 Important Points To Select The Best Health  Insurance Plan

Health is the prime concern of every individual today. With the increasing medical expenses and inflation rate, health care costs have also increased. 

These health maintenance costs are enhancing the importance of health insurance in our life. With the increasing importance of health insurance the necessity to find out the best health insurance plan has also gained importance.

The question is ‘Which is the best health insurance plan’? Well, there is no fixed formula to arrive at the best plan. The definition of the best insurance plan varies from person to person depending on the age, requirement, income, etc. There are certain points that you should consider while deciding on the best health insurance plan.

10 Key Factors to find out the Best Health Insurance Plan

1.Scope and Extent of Coverage: 

Multiple health insurance plans available in the market differ in the context of the coverage they offer. 

So before you opt for any plan, its scope and extent of coverage should be your primary focus.

2.Premium and Sum Assured: 

Premium is the cost of the plan you are going to buy. This is the reason for the premium being the major criteria for comparison between different plans. 

You should always compare the sum assured and the premium payable of different health insurance plans keeping in mind the inflation rate.

3.Network Hospitals: 

Health insurance policies have a list of hospitals where you can have cashless treatment or pay the bill and get reimbursed by the insurance company. A health insurance plan should have a broad network of cashless hospitals. 

A policy that has better hospitals specializing in a range of treatments in your neighbourhood is a preferable choice.


Every health insurance plan has a list of exclusions i.e. certain diseases like hernia, cataract, sinusitis, joint replacement, etc. are not covered under the plan. Some plans exclude expenses incurred on HIV/AIDS, STD, dental treatment, etc. from their coverage. 

You should also check whether maternity benefits are covered under the plan. Ideally, a plan with less exclusion and more inclusions is the best one.

5.Co-payment Clause: 

The co-payment clause in your health insurance policy requires you to pay a fixed percentage of medical expenses out of your own pocket. 

The higher the co-payment percentage, the lower is the premium as you have to bear a part of the expenses. Co-payment clause is also a determinant in arriving at the best health insurance plan.

6.No Claim Bonus (NCB): 

NCB (No Claim Bonus) is offered by insurance companies if you have not made any claim even once during the previous year. The bonus is a percentage increase in the sum assured at the existing rate of premium. 

The sum assured gets increased for every claim free year up to a certain limit. A plan that offers a high NCB is always a good choice.

7.Claim Settlement Ratio: 

Claim Settlement Ratio is the number of claims settled by the insurer over the total claims received for settlement. 

A high claim settlement ratio is a sign of a good option. So you should always check the claim settlement ratio of the insurer before selecting the plan.

8.Lifetime Renewal: 

Since you need a health insurance policy more at an older age, you should check the age limit of the policy. Some insurance companies provide coverage till the age of 90 while others have lifelong renewal feature.

9.Pre-existing disease and Waiting Period

All health plans have a waiting period for pre-existing ailments. While analyzing a health insurance plan, you should check the list of pre-existing diseases that are being covered under the plan because many health insurance plans either do not cover pre-existing diseases or if they do, then there is a waiting period of 2-4 years before which claim cannot be made. 

A health insurance plan with a less waiting period is better than others.


Deductible refers to the expenses that you have to pay before the insurance provider starts to pay. So you should opt for a policy with the least deductible clause.

The Bottom Line
Now that you know the factors that can help you in finding out the best health insurance plan for you, you can analyze different options available in the market and decide what is best for you. Ideally, a plan with more benefits and less exclusion is the best.


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