Things to know before buying a health insurance policy

The health insurance market is flooded with an array of products. You are spoiled with choices as different policies offer different benefits. So your work does not stop at deciding to buy a health insurance product. It is essential to choose the one that will satisfy your need. Make sure you buy a product that you understand well

For choosing a product, compare not only the coverage and costs, but also the exclusions and limitations, access to hospitals etc. For e.g. A critical illness plan would give you a hefty lump sum, but only after a waiting period. After buying the policy, you need to wait for about six months before you can make a claim. Also, you may prefer to get treated in a particular hospital which is not part of the network of the insurance company which means you will not have the benefit of cashless claim. These are important parameters that will matter to you at the time of a claim.

Tax benefit

The Income Tax Act provides an annual deduction on premium paid for self, spouse and dependent children up to Rs 15,000 and if tax payer is a senior citizen then a deduction of up to Rs 20,000 is allowed.