How To Choose The Right Health Cover

Health insurance is a must for all, but requirements vary. Preeti Kulkarni and Himali Patel hunt for the ideal approach for buying health insurance policies.

- Preeti Kulkarni and Himali Patel

The month of January is when most salaried begin worrying about tax savings. It is that time of the year, when your bank relationship manager makes frantic calls to you, as does the friendly neighbourhood insurance agent, knocking on your door to sell you a new life insurance product.

However, not many exhort you to buy health insurance—a product that, in fact, is likely to see more frequent use. And, its importance only grows as one grows older. Poor health can directly translate into reduced working years, while lack of resources to fund appropriate treatment can strangle your finances—a fact of life yet to dawn on many, across age bands, who continue to rely either on their employer-funded health cover or simply, pray for good health.

Even those who are convinced about the importance of health insurance would do well to bear certain key factors in mind. “Factors such as age and location matter the most,” says Sanjay Datta, chief, underwriting, claims and reinsurance, ICICI Lombard. This is because, the cost of healthcare in bigger cities are far higher. “The costs are 35-40 per cent higher in metros than those in smaller cities,” says Shreeraj Deshpande, head, health insurance, Future Generali India Insurance.

The young and restless