Health insurance policies enable the insured for comprehensive hospitalization coverage. It is prudent to face the possibility of health risks by taking adequate health insurance plans and protecting savings for other financial goals. Critical illness cover is defined-benefit plan, as the insurance claim amount is made in lump sum which is sum insured amount.

Copay, deductible and capping are the important factors to be considered before considering health insurance plan. Copay means policyholders are responsible to bear fixed part of treatment cost. Deductible is the amount that is liable to be paid by the policyholder. Capping or sub-limits are set for medical costs like surgery expenses, doctor fees, medicines, room rent etc.

Health Insurance Checklist

• Adequate health cover
• Well-established hospital network
• Insurance company reputation
• Waiting period for pre-existing diseases
• Coverage exclusions

Financial planners reiterate not to buy health insurance based only on premium amount, instead look at features that are covered comprehensively.