Each year, India records more than 38 million fatalities on account of NCDs, with more than 16 million deaths witnessed in individuals below the age of 70. A significant portion of these deaths is noted in low and middle-income families. Even though the Indian health sector is one of the largest and most diverse in the world, a large portion of the population does not have recourse to expensive healthcare treatments.

The treatment costs for cancer can go up to Rs. 10 Lakh. On the other hand, expenses associated with cure of cardiovascular ailments can be southwards of Rs. 3 Lakh. Treatment for chronic kidney complication, which is the 12^th leading cause of deaths globally, can cost up to Rs. 4 Lakh in India.

As a consequence of the growing awareness regarding health complications and their treatment expenses, health insurance plans have become particularly prominent with a CAGR of 23%. Owing to the deteriorating health standards and rising costs of treatments in India, it is imperative to buy such insurance plans to preserve the finances of individuals.

Importance of a health insurance policy in current times

Health-related issues can occur in any instance. While certain medical issues can be financially tackled without bearing any significant burden, treatment for major ailments can cause considerable financial dent.

The Indian health sector has incorporated state-of-the-art facilities, providing high quality treatments to patients. However, as these come at a substantially high cost securing the best health insurance policy is essential for your health as well as finances. Regardless, you should consider certain factors before approaching an insurer.

Factors to consider when opting for a health insurance plan

Best health insurance policy has the following associated features –

1. Coverage extension

An essential factor is the maximum compensation provided by insurers on its health insurance policy. As mentioned earlier, ailments such as cancer can cost considerably. Also, consider additional costs associated with treatments and see whether the insurer’s critical illness health insurance policy covers for such substantial expenses. Certain health insurance policies also include alternative cures such as Ayurveda, Unani, and homeopathy. If you avail these treatment facilities, check whether the respective policy covers it.

2. Cashless settlement –

Financial institutions such as Bajaj Finserv provide a cashless facility on their Health Insurance Plans. In tie-ups with certain medical institutions, these policies cover for your treatment costs at the time of bill payment and not after it, as compensation. It considerably reduces the hassle of collating funds during an emergency.

3. No claim bonus –

No claim bonus is a reward programme available on health insurance policies. When you spend a year without making any insurance claims for medical bill compensation, the respective insurer provides you with a bonus. Before purchasing an insurance plan, ensure to check whether that specific financial institution includes no-claim bonus in its policies.

4. Additional coverage –

Also consider leading financiers such as Bajaj Finserv who provide the facility of Top-Up Health Insurance Policy. It is additional coverage on and above your existing plan. It allows you to increase your previous plan’s quantum, which you can avail on account of any new health complication.

5. Type –

There are several types of health insurance policy available in India, which includes – individual health insurance plan, group health insurance policy, family floater plans, personal accident cover, senior citizen and maternity health insurance policy. Consider your suitability and choose accordingly.

Purchasing a health insurance plan is highly economical, given the comparatively lower annual premiums in lieu of hefty medicinal expenses. You can also enjoy tax benefits on premiums u/s 80D of the Income Tax Act, 1961. Avoiding such insurance plans diminish both the financial and mental strain of an insured individual.