Tips To Select The Right Health Insurance Provider

Medical emergencies can knock on your door any time and investing in a good health insurance plan is one of the best ways to stay financially prepared for unforeseen events. People have realized the importance of life insurance, so there are more and more people investing in an insurance plan. Subsequently, you will find many insurance companies offering different types of medical insurance plans. So how will you choose the best health insurance plan in India? This mainly depends on the kind of insurance provider you choose. Here are some excellent tips that will help you find the right company to buy and insurance policy from.

  • Reputation Of The Provider

One of the first things that you should look out for is the reputation of the health insurance company. Over the years, there has been an increasing number of cases where the provider doesn’t pay the claims. Therefore, you have to be careful to become a victim of the same. Search online and see the reviews of the company; this will help you determine the quality of their services. You can also ask for a reference for someone who has an active policy with a particular provider.

  • Solvency Ratio

It is an important factor to consider as this determines whether or not the provider is capable of settling the claim when you need it. According to the Insurance Regulatory and Development Authority of India or IRDAI, it is mandatory for every health insurance company to maintain a minimum solvency rate of 1.5.

The solvency ratio is an important factor as it determines the reliability of the provider. For instance, if there is a natural disaster, the company is likely to have large claims to settle in a short time span. In such emergency situations, this solvency ratio becomes critical; you will be able to claim your policy faster and protect your family.

  • Claim Settlement Ratio

Along with the solvency ratio, the claim settlement ratio is another factor that determines whether or not the insurance provider is reliable. This ratio indicates a percentage of claims that the company has paid out of the overall claims filed in a year. Look for insurance companies with a higher claim settlement ratio. The higher this ratio, the easier it will be for your loved ones to claim the money. Although it is important to consider the claim settlement ratio, you should also check the total number of claims that the company is receiving.

  • Rider Coverage

Along with the main insurance policy, many insurance providers offer additional coverages known as the riders. These are small coverage that gives you extra protection. Some of the common riders include accidental death, waiver of premium, income benefits. Ask your insurance provider if they provide riders along with the main policy.

Having an insurance plan is a smart investment decision. With this policy backing you up, you can rest assured that your family is protected. When you choose an insurance policy, make sure that you read through all the documents carefully, and understand each point before signing the final papers.