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Health Insurance Guide for First Time Buyers


Health Insurance Guide for First Time Buyers


Health insurance plans have gained importance in the recent past. With increasing cases of lifestyle ailments, it has become a necessity in today’s day and age. That being said, buying one, especially for first-time buyers, can be an overwhelming experience. The various jargon used, understanding complex terminologies, their meaning, and their implications on your coverage can often be confusing. But don’t you worry? This article compiles some handy tips to help you buy a suitable health insurance policy while considering your medical requirements.

#1 Analyse your requirements

The first step in buying health insurance coverage is to analyze your requirements. Your current lifestyle impacts your health in the future. After carefully considering all your immediate and long-term medical needs, any decision about purchasing a health insurance policy should only be taken.

Health Insurance Guide

#2 Search for a policy with adequate coverage

Searching for a policy starts with determining appropriate coverage. Whether you purchase family health insurance coverage, critical illness insurance, or personal health cover, it will determine the range you should select. Thus, only after analyzing your requirements should you choose the policy coverage. Make sure to select a policy with pre as well as post-hospitalization range. This way, any treatment costs before hospitalization and post-hospitalization expenses are covered under your insurance coverage. Further, various policy benefits like daily cash allowance, in-patient hospitalization, cashless treatment, daycare coverage, etc., are offered. Make sure to select the right policy with the necessary features for you.

#3 Look for a flexible insurance policy

What is health insurance without having the flexibility to amend it later? A flexible policy will help to secure necessary coverage as your age increases. Say you purchase a family floater policy where you need to add your parents. Now, the flexibility of purchasing additional coverage will help you not switch your entire insurance plan but only make necessary amendments to your existing health coverage.

#4 Review the waiting period for different ailments

The waiting period is when your insurance company does not provide disease coverage. This waiting period differs among insurance companies and also for various policies. It is essential for first-time buyers not to miss this clause since you can find yourself without insurance coverage just when you need one.

#5 Checking the copayment clause and the deductibles

Copayment is the amount you, the insured, must pay at the time of claim. It is an out-of-pocket expense. For instance, an insurance policy with a 10% copayment clause implies that you must bear 10% of the amount at each share.

Along with copayment, the deductible is another factor. This kicks in earlier than copayment, wherein you must meet some predetermined expenses before the insurance coverage kicks in. Thus, it isn’t only about purchasing a health insurance policy and carefully observing these clauses’ implications at the claim.

#6 Policy with lifetime renewability

Lastly, selecting a policy with a lifetime renewability option is critical. As your age increases, so do the premiums on these plans. Thus, having a policy that offers lifetime renewability helps to keep your tips in check.

These are some nifty tips that first-time buyers can remember to get comprehensive insurance coverage at an affordable price. Do not forget to compare the available options before finalizing one.

Eula Boone

I have written professionally since 2010 and have been an investor since 2015. My finance blog, economydiva.com, is one of the most visited blogs in the world, with more than 3 million readers a month. I love sharing what I know about investing, saving, and managing money and providing practical tips on how to be a smart and savvy money manager.