The primary advice is always to consider covering all the family members in the plan, because you may not know who among them need hospitalisation due to an illness or an accident.
Decide what type of Health Insurance Plan is best suitable
Unlike individual health insurance plan which covers an individual member, a family floater plan covers entire family in a single plan and often it is cheaper by around 40%, when compared to an individual plan and therefore it is advisable to go for it when you have dependents in the family. In a Family floater plan the sum assured is shared between all the members covered under it. But remember, Premium is determined by the age of eldest member in the family in a family floater plan.
An adequate Sum Assured
It is always recommended that the sum assured should be reasonable, while you buy a Health Insurance Plan. Most of the Insurance Companies put limits on room rent for hospitalisation benefit as a percent of sum assured. Make sure that percent of sum assured mandated by the insurance company can take care of your room rent, if you face a situation where you require a little longer hospitalisation.
Comprehend the Co-payment options
Co-payment is the percentage of claimable hospital expenses you have to pay on your own in the case of a claim. Though, this option lowers the premium amount, it is advisable to avoid it if you do not want to incur higher expenses from your pocket for each claim. The co-pay options offered in plans varies from company to company. And it is necessary that you understand and opt for the right one suiting your age and need.
Understand the Deductible
Some of the plans offered by Insurance Companies have an agreed deductible value which is a fixed amount that you have to pay on your own before claiming for benefits. Even though the premium amount for these plans are low, you might end up spending money when you happen to claim the benefits.
Check the Network hospital list and TPA reputation
All the insurance companies are associated with certain hospitals where they offer cashless treatment. They are the Network Hospitals. And some companies uses a Third Party Administrator to do these tie ups and payments. It is necessary to check whether there are sufficient hospitals in your area with whom the Insurance Company has tie ups, so that you will be able to utilise the full benefit of your policy in case of an emergency. Also review the attitude and capabilities of the TPAs, through whom the companies operate, if there are any. This will ensure a no hassle claim process, for your policy
Have an eye on Bonuses on policy renewal
Most companies give No Claim Bonus in the form of cumulative Bonus subject to certain limits. This bonus is a percentage increase in sum insured value at renewal and the increase will be reverted back to the original sum assured in case of a claim. It is always advisable to check the policy fine prints and understand how this is calculated and administered.