Tips for Buying Mediclaim Policy

With rising healthcare costs, buying a health insurance policy has become a necessity. The earlier you buy the policy, the lower premium you would have to pay. Read further to know how you can buy the best Mediclaim policy.

Choosing a health insurance plan for you and your family is a crucial decision as health is the only real wealth. A health insurance policy gives you peace of mind and a sense of security, knowing that you and your family have enough protection against medical emergencies. It also assures that you can get the best medical care if anyone in the family suffers from illness or disease.

A lot of people in India buy Mediclaim policy mainly to reduce their tax liability. But, Mediclaim insurance is much more than a tax-saving investment instrument. Studies suggest nearly 80% of the financial crisis amongst Indian families occurs due to medical emergency, and it can have a significant impact on your savings.

Medical emergencies like critical illness not only requires a considerable sum for treatment, but it may also impact your ability to earn. Thus, it can have a double impact on your finances. Imagine losing a family member because you could not afford to pay for the treatment cost. To avoid this unpleasant situation, you should invest in the best Mediclaim policy.

Buying a health insurance policy is not as easy as it may seem; you must be careful about choosing the right plan. If you are a first-time insurance buyer.


Here are a few important things you must know.

  1. First and foremost, you must purchase an individual Mediclaim policy even if your organization has covered you under the group health insurance plan. Remember, you get medical coverage only until you are employed with the organization; when you leave the company, or you retire from the company, you will lose the benefits. To avoid this situation, it is better to buy an individual Mediclaim.
  2. When you select the sum assured of your Mediclaim policy, you must know your family’s health needs. If you live in a small city (generally the medical care cost is less), you must opt for a sum assured of Rs. 3 to Rs. 5 lakhs. But, if you live in a metropolitan city, you must have a medical cover of at least Rs. 5 to  Rs. 10 lakhs. Also, make sure to increase the sum assured every time you renew the policy to keep up with the rising medical inflation.
  3. If you are a working professional, experts suggest that you must buy Mediclaim policy online as soon as you get your first paycheque. When you buy insurance early, you can get the coverage at an affordable premium as you are most likely to be fit with no pre-existing diseases. Also, since you’re less likely to file for a claim when you are young, you can benefit from the cumulative bonus, which can increase the original coverage amount for every claim-free year.
  4. No matter, the type of health insurance plan you buy, be it an individual plan or a family floater plan, it will have a waiting period clause to cover the pre-existing medical condition/diseases. The waiting period generally extends from two to four years, and it varies from insurer to insurer. So, while you compare the Mediclaim policies, look for a plan that has the least waiting period.
  5. While filling your Mediclaim policy application form never lie or hide any information from the insurance company. If you have any medical condition, you must honestly specify the details. Failure to disclosing the data can be considered a violation of the policy terms when you file for a claim, and the insurer may terminate the policy.
  6. One of the most significant advantages of buying a Mediclaim policy is that most insurance companies in India offer cashless hospitalization facilities. So, when you buy Mediclaim online, you must check the list of network hospitals that are in your locality. Cashless hospitalization allows you to seek treatment from any of the network hospitals, and the insurance company will directly settle the bill with the hospital; you need not pay a single penny out of your pocket.
  7. It is paramount that you check the credibility of the insurance company and check their claim settlement ratio. The claim settlement ratio will give you a fair indication of the number of claims successfully settled by the company. You must choose a company that has a high settlement ratio.

Apart from the above factors, you must consider other small things like having a list of hospitals where you wish to seek treatment and does the insurance company offer a cashless facility in these hospitals