Things to Know Before Buying a Health Insurance Plan

Health insurance becomes very important in cases where you deal with the costs of unexpected health crises. Many people might postpone taking health insurance but you can avoid this predicament by proactively comparing health insurance plans.

Understanding key factors before purchasing a policy lets you choose the most suitable plan for your requirements.

This article discusses all the essential factors to consider when choosing health insurance.

Things to Know Before Buying a Health Insurance Plan

  • Age Criteria 

Buying health insurance early offers numerous advantages. At a young age, you’re healthier, reducing the likelihood of pre-existing conditions and thus lowering premiums.

Moreover, purchasing a policy early secures a lower premium and provides access to higher coverage amounts and more favourable terms.

This proactive approach ensures comprehensive coverage at a lower cost, providing financial security and security for unforeseen medical expenses in the future.

  • Waiting Period

The waiting period is crucial when choosing health insurance plans. It represents the term before some ailments start getting covered. Generally, it refers to the period for which the company does not accept any claim for a pre-existing condition. 

Being aware of the waiting period is necessary before the health insurance plan choice is made. This will ensure your coverage reflects your healthcare needs and might help you avoid any possible issues while getting your claim.

  • Co-Payment

Co-payment reflects the ratio of medical expenses shared between an insured person and the insurance company when a claim is made.

Normally, the insurer covers a larger part of the bills, and the policyholder pays less fraction of it. For example, if the patient co-pays 20%, then the insurance pays 80% off the claim amount.

Choosing a higher co-pay can reduce health insurance premiums, requiring the insured to pay more during claims.

Conversely, a lower co-pay increases premiums but reduces out-of-pocket expenses during claims. Some insurers mandate co-payment, while others allow voluntary co-payment options, offering flexibility to policyholders.

  • Pre/Post Hospitalisation Cover

Besides hospitalisation, there are pre and post-hospitalisation payments which complete an insurance cover during a medical crisis.

Before purchasing an insurance policy ensure you look into the details of what pre and post-hospitalisation medical expenses are covered. Awareness of this is crucial because it keeps you financially secure. 

Diagnostic tests, consultations and drugs prescribed before hospitalisation make up the pre-admission costs. The post-hospitalisation plan offers follow-up visits, outpatient medication prescriptions, and rehabilitation services after the patient leaves the hospital. 

By choosing a package with pre and post-hospital care, you eliminate maximum out-of-pocket expenses and get more certainty during medical emergencies.

  • Capping of Room Rent

Capping of the hospital room rent, people must be aware of this factor while choosing a health insurance policy. 

The type of room you choose while being hospitalised affects your medical expenses. The hospital provides several types of accommodation including the general ward, semi-private room, and private room with different rent rates. 

However, health insurance plans impose a maximum limit on room rent even the ICU charges. 

Therefore, if you pick up a room that exceeds this limit, you will have to pay the excess amount by yourself. Understanding the room renting clause helps policyholders make the right choice and avoid excess out-of-pocket expenses during hospitalisation.

  • Day Care Procedures

Daycare procedures refer to medical treatments that can be completed within a single day, requiring hospitalisation for less than 24 hours.

When purchasing a health insurance policy, it’s important to ensure coverage for such procedures. Examples include tonsillectomy, nasal sinus aspiration, cataract surgery, and others.

Verifying coverage for daycare treatments ensures comprehensive healthcare protection for unexpected medical needs.

  • New-Age Treatment Cover

Insurance policies should be checked for coverage of modern medical treatments, which often provide superior outcomes compared to traditional methods. 

Inquire with your health insurer about coverage for advanced treatments like stem cell therapy, robotic surgery, and others. 

Ensuring coverage for these new-age treatments guarantees access to cutting-edge healthcare options for enhanced medical care and better treatment outcomes.


Understanding these key components before buying health insurance helps you choose a plan that fits your needs. By accounting for the above factors, you can choose the best cheap health insurance to protect yourself in medical emergencies. 

Remember that buying a health insurance plan is an investment in your health. Act today to protect yourself and your family’s health. Visit Bajaj Allianz to browse a variety of health insurance options and choose the one that suits you the most.