How to choose the right health insurance policy

Why this is a daily-life essential A single hospitalisation can wipe out years of savings. Health insurance is the wall between a medical emergency and financial ruin — and the cheapest policy is rarely the right one. What matters is whether it pays fully when you need it.

Get the sum insured right Medical costs rise fast, especially in metros. For a family, a cover of ₹10 lakh or more is a sensible floor today. If a large single policy is costly, add a super top-up that kicks in above a threshold to boost cover cheaply.

Read the fine print that decides payouts - Room-rent limits: a cap can proportionally reduce your entire claim. Prefer policies with no sub-limit. - Waiting periods: pre-existing diseases are often covered only after 2–4 years. Shorter is better. - Co-payment: a clause making you pay a fixed share of every claim. Avoid if you can. - Disease sub-limits: caps on specific procedures (like cataract) that limit payouts.

Check the insurer, not just the plan Look at the claim settlement ratio and, more usefully, the claim settlement time and network hospitals near you. A policy that pays slowly or disputes claims defeats the purpose.

Buy early and stay covered Premiums are lowest when you are young and healthy, and buying early gets waiting periods out of the way before you need them. Don't rely solely on employer cover — it vanishes the day you leave the job.

Match the cover to your family Estimate the cover your household actually needs based on age, city and dependants before comparing quotes, so you buy on adequacy rather than on the lowest premium.