Top 10 Questions to Ask Before Choosing an Insurance Plan

Choose the Right Insurance Plan by Asking These 10 Questions

Choosing the right insurance plan is not rocket science; you just need to ask yourself a few important questions to find the right plan:

What is the Policy Type?

Insurance plans have become a necessity, but it is important to understand what kind of policy suits your needs. For instance, Health Insurance Plans are usually categorised as “Indemnity Plans” and “Defined Benefit Plans”. An indemnity plan provides reimbursement or cashless settlement for hospital expenses, whereas a defined benefit plan pays a lump sum amount regardless of the medical costs. Therefore, you must first know what the policy type is and what works for you.

What is the Coverage Amount?

Every individual has varying needs, and therefore, they need different levels of coverage amounts under a policy. You should evaluate your needs and responsibilities to choose a coverage amount that is adequate to meet such needs.

Pro Tip: Choose an insurance plan considering the increasing inflation in the country. 

What are the Inclusions of the Plan?

Every insurance plan comes with a specific list of inclusions: Services that the insurance company covers. Make sure to carefully go through the list of conclusions before choosing a plan to ensure that your specific needs are covered under the plan. For instance: A medical insurance policy typically offers coverage for pre- and post-hospitalisation expenses, health check-ups, etc and the expenses incurred for pre-existing diseases is usually not covered.  

What are the Exclusions of the Plan?

Similar to the importance of checking inclusions, you must also check the exclusions under the insurance plan. Exclusions are services that the insurance company does not cover. The exclusions of one insurance company differ from those of others. Therefore, it is important that you check the exclusion list smartly. 

What does the Waiting Period Look Like?

When it comes to choosing health insurance, you must understand the waiting period of insurance companies. A waiting period is the duration during which your insurer will not provide coverage for specific diseases. For instance, if the waiting period for a pre-existing disease is two months, you are typically not allowed to claim any benefits under the plan until the waiting period has passed. 

What is the Claim Process for the Policy?

The sole purpose of purchasing an insurance plan is to get coverage during times of need without any hassle. This is why you must understand the claim process for the policy. Every insurance company has a different process for raising, verifying and settling claims that you should understand.

Did You Know that the Insurance Regulatory and Development Authority of India, IRDAI, releases an annual claim settlement report of insurance companies that you can check before purchasing an insurance plan?

What are the Tie-Ups of the Insurance Company?

Insurance companies have tie-ups with different medical institutes, hospitals and similar facilities where the insured can avail benefits like cashless claim settlement, reduced waiting period, etc. To ensure that you are protected during times of emergencies, make sure to check the tie-ups of the insurance company. 

Pro Tip: Choose an insurance company that has tie-ups with both local and renowned hospitals in the country. 

How Many Claims Can You Raise in One Policy Year?

Typically, insurance companies have an upper limit on the number of claims you can raise during one policy year. To ensure that your needs can be adequately covered under a plan, you must check the number of claims the insurer allows during one policy year. 

What are the Available Riders?

Riders are optional benefits that you can add to your existing policy to enhance the coverage at a minimal additional premium. Insurance companies have a separate list of riders they offer on every plan that you must check. Remember that picking riders on your existing policy can significantly enhance the coverage and allow you to customise the plan for your needs, so be smart and pick wisely. 

What is the Application Process?

In today’s time, when digitalisation has made opting for insurance policies easier, the last thing you want is dealing with a tedious application process. Before finalising a plan, make sure to check the application process, verification and approval time.