{"id":5070,"date":"2026-01-21T13:57:26","date_gmt":"2026-01-21T13:57:26","guid":{"rendered":"https:\/\/website-frontend-uat.1finance.co.in\/1f-dashboard\/blog\/health-insurance-a-protective-shield-for-your-medical-emergencies\/"},"modified":"2026-07-09T05:11:07","modified_gmt":"2026-07-09T05:11:07","slug":"health-insurance-a-protective-shield-for-your-medical-emergencies","status":"publish","type":"blog","link":"https:\/\/website-frontend-uat.1finance.co.in\/1f-dashboard\/blog\/health-insurance-a-protective-shield-for-your-medical-emergencies\/","title":{"rendered":"Health Insurance : A Protective Shield for your medical emergencies"},"content":{"rendered":"\n

The adage “Health is Wealth” is well known. With the breakout of COVID-19, which shook each of us, I am sure we grasped the gravity of this saying.<\/p>\n\n\n\n

Though we live in a new normal today, it has altered<\/strong> our<\/em> way of life and approach to protection needs, and having adequate health insurance coverage is regarded as one of the smartest financial decisions an earning individual can take.To simply this, let us first understand,<\/p>\n\n\n\n

What is Health Insurance?<\/h2>\n\n\n\n

Health insurance is a policy contract between the policyholder (Insured) and the Insurance company (Insurer), in which the policyholder agrees to pay a certain amount known a Premium, and in exchange, the insurer agrees to cover medical expenses such as hospitalization, day-care, pre and post hospitalization, and so on<\/p>\n\n\n\n

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So, if the insured has a medical or health emergency that is covered by the plan, the insurance company will indemnify the eligible medical expenses.<\/p>\n\n\n\n

Choosing the best health insurance plan for yourself may be tough given the range of health insurance products available in India.<\/p>\n\n\n\n

Here\u2019s a quick guide on 10 must look features to consider before choosing the appropriate plan.<\/h3>\n\n\n\n
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  1. Coverage and Pricing<\/li>\n<\/ol>\n\n\n\n

    One must identify what is the cover amount one should opt for. Well, there is no definite way to arrive at the coverage amount. Few assumptions and situations explained here may help decide one:<\/p>\n\n\n\n

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    • Identify whether you are looking at Individual health insurance or a family cover. The individual cover as the name itself indicates will be entirely used for yourself as per your needs. The family floater cover will float amongst all the family members. Hence, this can be a starting point to decide on the cover amount.<\/li>\n\n\n\n
    • Identify the highest claim amount you came across in your family or friends circle and the treatment cost in your vicinity.<\/li>\n\n\n\n
    • It also depends on the history of pre-medical condition in the family.<\/li>\n\n\n\n
    • If you are starting early, one can start with the minimum individual cover of 5 lacs to cover the medical expenses comfortably and keep on increasing by way of Super top-up or within the same policy as per the change in the life stage.<\/li>\n\n\n\n
    • Few specialists suggest having an Ideal cover equivalent to \u00bd of your annual salary amount as part of Emergency planning.<\/li>\n<\/ul>\n\n\n\n
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      Once the cover amount is decided, one must look out for the pricing for the said cover amount against his age.<\/p>\n\n\n\n

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      1. Room Rent<\/li>\n<\/ol>\n\n\n\n

        Room rent is the most important aspect to consider because it is linked to all incidental expenses such as doctor consultations, nursing charges, and so on. It is best to choose a plan that has no room rent restrictions or sub-limits<\/p>\n\n\n\n

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        1. Waiting Period & Pre-Existing Diseases<\/li>\n<\/ol>\n\n\n\n

          It is apparent to know the waiting periods in the policy. There are three major waiting periods:<\/p>\n\n\n\n

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          • A 30-day initial waiting period.<\/li>\n\n\n\n
          • A 2-year waiting period for Specified Diseases listed in the policy.<\/li>\n\n\n\n
          • A 4-year waiting period for pre-existing diseases.<\/li>\n<\/ul>\n\n\n\n

            Pre-existing diseases is a prevalent medical condition before taking the policy for which the medical treatment is sought for.<\/p>\n\n\n\n

            A policy with a shorter waiting period for pre-existing conditions is advisable.<\/p>\n\n\n\n

            <\/p>\n\n\n\n

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            1. Co-Payment<\/li>\n<\/ol>\n\n\n\n

              Co-payment means that the policyholder must contribute a set percentage of the claim with the insurer, say 10% or 20%, depending on the policy terms and conditions. Few policies include a mandatory co-payment, and even fewer include voluntary options.<\/p>\n\n\n\n

              It is usually preferable to choose a policy with NO co-pay and to avoid the voluntary choice. Though it will lower your premium because you are sharing the risk with the insurer, it will have an effect when you file a claim.<\/p>\n\n\n\n

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              1. No Claim Bonus<\/li>\n<\/ol>\n\n\n\n

                In a health insurance policy, the terms “Cumulative Bonus” and “No Claim Bonus” are interchangeable. As the name itself indicates, when there is no claim in the policy, the policyholder is entitled to receive a certain percentage in the form of bonus which is a variable percentage of Sum insured (SI).<\/p>\n\n\n\n

                This amount is available to be utilised in addition to the base sum insured, should the claim exceed the base sum insured. Fewer policies provide a discount on your premium instead of Bonus.<\/p>\n\n\n\n

                Higher the No claim bonus say 100% or 150% of SI over a period of time, the better for the policyholder. As this is a monetary benefit available for the policyholder by way of bonus or discount for no claims.<\/p>\n\n\n\n

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