Insurance amount, top up plan and other key factors one should focus on when buying health insurance policy

5 key factors one should focus on when buying health insurance policy: Medical costs in India are rising over 10 per cent annually. It is outpacing retail inflation (which is an average of 6 per cent) by miles.

On the other hand, salary or wage increments by and large are not in sync with retail or medical inflation.

Amid such a scenario, it is very important for an individual or a family person to have a medical insurance policy.

But when we search for a medical insurance policy, we often find ourselves confused about the selection of policy, the facilities provided in the policy, and the insurance amount that we should opt for.

AR Hemant, AVP, bankbazaar.com, tells 5 key points everyone should keep in mind when buying a health insurance policy.    

1. Insurance amount 

Medical costs are rising at 10-12 per cent annually.

A policy that seems sufficient today may not cover future expenses.

So, one should opt for coverage of at least Rs 10-15 lakh to protect against inflation and unexpected medical emergencies. 

2. Top up plan a must

A top-up plan supplements your base policy by covering high hospitalisation costs after a certain threshold.

It’s a cost-effective way to enhance your family’s health coverage without a steep premium hike.

3. Declaration of preexisting diseases 

When buying a health insurance policy, one should correctly declare pre-existing diseases.

Failure to disclose can result in claim rejections when you need your coverage the most. 

4. Know about inclusions and exclusions

Read your application carefully to ensure all details submitted are correct.

Scrutinise the policy’s exclusions and waiting periods, especially for PEDs.

Knowing what’s covered—and what isn’t—will save you from surprises during emergencies.

5. Focus on protection over tax savings

Tax deductions under Section 80D are a bonus but shouldn’t drive one's decision.

One should focus on securing the best protection for their family instead of maximising tax savings.