8 factors you must look into while buying health insurance and here’s how much you must invest

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Like life insurance, health insurance has also become an important investment. With increase in medical costs and lifestyle diseases, it has become important for individuals to take up a health insurance, after all medical emergencies can happen anytime.
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There are several financial advisors who are selling health insurances and consumers often get confused as to which is the right investment and how much should one invest.

Also, make sure you take up a health insurance as soon as you start earning.

“It’s advisable to buy policy at a younger age, because the premium will be less and it will increase age wise. The minimum investment should start from Rs 700 per annum,” said Kaushlendra Singh Sengar, Founder & CEO, Advisorymandi.com.

Having said that, some financial advisors can also have a hidden agenda of promoting their company and not giving you a sound advice.

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“There are various factors one should consider before buying a health insurance. Check whether the policy is providing you a discount in next premium in case you have not taken any claim, see the claim settlement ratio, etc,” said Sengar.

Here are 8 things you must look into before buying a health insurance

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1. Claim settlement ratio and duration

1. Claim settlement ratio and duration

Go for the higher claim settlement ratio insurer.

2. Tie-ups with hospital

2. Tie-ups with hospital

Check whether the insurer is having tie ups with wide network of hospitals.

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3. Day care coverage

3. Day care coverage

As most of the treatments do no require hospitalization of more than 24 hours and usually health insurance covers only 24 hours or more, it’s better to opt day care coverage health insurance policy.

4. No claim discount

4. No claim discount

Check whether policy is providing you a discount in next premium in case you haven’t taken any claim, either insurer will provide you discount or he will increase the coverage amount in the next renewal.

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5. Free full body checkup

5. Free full body checkup

Usually health insurance policy provides one-time free full body checkup in a year.

6. Renewal

6. Renewal

Please check the renewal age limit of the policy, so that when you cross the age of 50, you are still insured.

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7. Diseases covered

7. Diseases covered

Check the list of disease covered.

8. Clauses

8. Clauses

Check 1. Contribution clause; 2. Renewability clause; 3. Reasonability clause; 4. co-payment clause and; 5. Exclusions clause before buying a health insurance.

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