Which is the cheapest health insurance

There are hundreds of types of health insurance plans available in India and after the COVID-19 pandemic, there has been a tremendous jump in the new products and services being offered, increasing the competition among health insurance companies. Due to this, it has become a bit difficult for the customers to gather information about good as well as cheap plans, as each policy has different benefits. In such a situation, you have to ensure that whatever policy you take, all the benefits you need should are present in it. For example, some may feel that paying less premium is what makes a policy affordable for them, while for others, getting maximum cover/benefits may be the priority and definition of affordable.

To get cheap health insurance, it is very important to keep the following things in mind:

1. Focus on budget-friendly policies

If you are planning to buy health insurance, then after seeing the coverage, you should focus on what the premium will be, at what interval it needs to be deposited (monthly/half-yearly/yearly), what happens if the premium isn’t paid on time and, most importantly, whether the premium amount is budget-friendly for you or not. Generally, the premium amount should be such that it does not affect your regular budget.

2. Installment facility

An advantage of the increasing competition among health insurance companies is that premiums can be paid in instalments in some policies. For example - if your annual premium is Rs 12,000, then it can be converted into monthly instalments of Rs 1,000 per month - although, there may be some increase in the amount of annual premium. These days, most companies also provide the facility of paying the premium over two to three years at a time. By taking advantage of this facility, you can also get a discount of up to 10-25% on the total premium amount.

3. Compare

Whenever you are going to take health insurance, be sure to study the offers of two or more companies. Comparing will not only save you money, but you will also understand what services are really important to you.

Many people wonder whether they should take health insurance from a bank. Health insurance given by banks for account holders (who have an account in the bank) can be cheaper than other health plans. It is generally believed that the risk of diseases and injuries increases as the policyholder gets older, so health insurance companies make the premium costlier with time. The policies sold by banks tend to be cheaper for senior citizens as they do not take into account the age of the policyholder in most cases.

Group insurance is not only provided by your employers but most private and public sector banks also offer the facility for their account holders. These plans are usually for specific coverage but their premiums are definitely cheaper.

Recently, the Insurance Regulatory and Development Authority of India (IRDAI) has facilitated portability in group health insurance plans offered by banks. This is extremely beneficial for the account holders as the facility of portability will enable them to choose a policy by comparing the plans offered by various insurance companies linked to the bank.

Following are some of the features of group health insurance offered by public and private sector banks:

• The coverage is available only to the existing account holders of the bank and you can enjoy the coverage as long as you keep your account active with the bank.
• Premium rates are much lower as compared to individual health plans.
• Coverage can be extended for dependents at an additional premium.
• Pre-existing medical conditions are usually covered without any waiting period from day one. However, some plans may have a waiting period, which is usually short.
• There is no medical checkup before taking the policy.

Following are the benefits of health insurance covered by the bank:

Maternity expenses: Generally, health insurance companies do not cover the time of pregnancy. If you want pregnancy to be covered in a health insurance policy, you may need to take additional services. This service is also known as a rider, in which maternity is covered by increasing the premium amount. But, at present, many banks also cover pregnancy-related expenses in the health insurance plans given to their female employees and customers. Keep in mind, you cannot take advantage of this type of health insurance immediately, for most banks fix a waiting period, which can be up to 24 months.

More members benefit: When you insure the whole family from a health insurance company, generally, the insured along with his dependents (like wife and children) get coverage. But many banks include seven members of the family including parents in the insurance coverage.

Other benefits: Some other benefits of health insurance by banks:

• Tax benefit: The benefit of tax exemption can be availed on a premium payment of health insurance under Section 80D of the Income Tax Act, 1961.
• Refund: When a person takes this type of health policy, they can also return that policy and get a refund, under the terms and conditions, within a few days of taking the policy.
• Cheap coverage that includes AYUSH treatment, pre and post hospitalization, day-care procedures, ambulance charges etc.

Family floater insurance covers the whole family. There is no need to pay separate premiums for all the members of the family in this case; a single premium is sufficient for the entire family. In this, all the members of the family get the benefit of the sum insured amount. For example, suppose a person has taken a family floater health insurance of 5 lakhs and a member of his family is suffering from a medical condition; then, the insurance company will cover the entire medical expenses up to Rs 5 lakh for that person. Alternatively, if you buy health insurance of Rs 1 lakh each for all five members of a family, then each person will be able to take advantage of sum-insured only up to Rs 1 lakh. Overall, since the family floater offers a much larger coverage, it can be said that it is a money-saving plan.

Many questions come into the minds of people purchasing health insurance, like how much a health insurance policy costs or how expensive health insurance will be enough for them. In all honestly, no one insurance policy is best for everyone. Insurance companies design schemes keeping all types of customers in mind. For example, you can buy shampoo for Rs 2, Rs 3, Rs 5 and so on in the market. Depending on how much you spend and the quality of the brand you pick, you will get a small, medium or large-sized bottle of shampoo for that much money.

Now, if you want even more quantity of shampoo, the company may offer you bundle packs at discounted prices. In such a situation, the company is also selling more and more goods or services and the customers are also getting some discount and being able to purchase more goods without going beyond their budget.

Similarly, health insurance policies come in all budgets and the cost would depend on many factors, including your age, health status, medical history, family size, etc.