Many of us are aware of health insurance and its benefits. People have had long discussions, read many articles and watched videos about financial planning. However, unfortunately, health insurance is overlooked in most scenarios in spite of it being one of the most important components of a healthy financial portfolio.
When minor yet unexpected health issues occur, we all start seeking a contingency plan. You suddenly remember that buying a health insurance plan makes sense. There are several benefits of having a strong and comprehensive health insurance plan.
Now, if you know, there are health plans that you can buy for yourself and your family, and then there are health plans that your employers purchase for you. You might have been covered with a group insurance policy. But those may not be as comprehensive, and hence buying individual or family health insurance is always a good idea. Health insurance plans offer you financial freedom from medical care expenses without hampering your existing savings.
Choosing the right health insurance plan is crucial. Make sure you opt for a plan that covers your needs based on medical analysis and records from a reliable doctor. Even small medical expenses can hurt your financial plans. At the same time, getting an apt health insurance plan helps you make up for uncertain medical expenses.
Here are a few reasons you need a health insurance policy and why it should be a part of a strong financial portfolio:
You get financial cover for uncertain medical expenses. You can choose the sum insured suitable for your expectations and safeguard your finances.
Health insurance plans are more affordable than life or general insurance plans and help you gain access to quality healthcare.
You get coverage against critical illnesses, which is significant, as treatment for critical illnesses can be very expensive.
A hassle-free claim process ensures that you are reimbursed quickly. Health insurance plans offer you peace of mind knowing your family is protected in case of an emergency.
Things to Keep in Mind While Buying a Health Insurance Plan
Budget is the primary thing that we all should think of, which is evident in any case. Though health insurance works as the financial backbone, your current state of income is also important. Choose your sum insured wisely so that it will help you maintain the premium-paying capacity throughout the tenure. Here are a few things to keep in mind while buying budget health insurance:
Sum Insured
In general, it is always better to get the sum insured equivalent to your annual income. This helps you tackle any financial uncertainty. In case of critical illnesses, get expert advice to get adequate cover.
Premium Amount
As mentioned earlier, you must make sure that the premium amount you get by finalizing the sum insured is affordable. Not just in the present, but for the future too.
Financial Goals and Life Stages
We all have financial goals. While buying a health insurance plan, you must make sure that the premium and the coverage are well-aligned with your long-term and short-term goals.
No Claim Bonus and Deductible
Usually, when you have a claim-free year, you can enjoy a discount on the premium. Avoiding claims for small injuries or not-so-severe health conditions can undoubtedly help you make your insurance more affordable. Choosing high deductibles also makes the policy more affordable with fewer benefits, and vice versa.
Hence, it is essential to factor in health insurance policies as a part of a strong financial portfolio and reduce the chance of losing hard-earned money.
Common Mistakes to Avoid When Choosing Budget Health Insurance
Going “budget” doesn’t mean going blind. A low premium can feel like a win—until you actually need to use the policy and realize it doesn’t cover what you assumed it would.
Here are a few common mistakes people make (and how you can avoid them):
- Choosing the cheapest plan without checking what it actually covers: A plan can look affordable upfront, but sub-limits, exclusions, and high co-pays can make it expensive when it matters most.
- Ignoring waiting periods (especially for pre-existing conditions): Many policies don’t cover certain conditions right away. If you buy a plan and expect immediate coverage for everything, you might be disappointed later.
- Overlooking the hospital network: If your preferred hospitals aren’t in the network, you might miss out on cashless benefits or end up paying first and claiming later.
- Picking an unrealistically high deductible: Yes, higher deductibles can reduce premiums, but only if you’re comfortable paying that amount out of pocket before coverage kicks in.
- Not reading the fine print on room rent limits and sub-limits: These small details can directly impact claim payouts, especially during hospitalization.
Tips for Saving on Health Insurance Premiums
Saving money on premiums is totally possible—you just want to do it the smart way (without cutting corners that’ll hurt later).
A few practical ways to keep premiums manageable:
- Start early if you can: Premiums are generally lower when you’re younger and healthier, and you get more plan options too.
- Consider a higher deductible only if it fits your finances: If you have an emergency fund and can handle a larger out-of-pocket amount, this can reduce your premium.
- Deploy no-claim benefits with discretion: sometimes it can be better not to make a claim in case it is a small expense you can easily afford and can retain your no-claim benefits.
- Cover what you really need: While random over-insuring is generally worse than nothing, often a personalized plan to fit your health profile, family history, and lifestyle is the best thing.
- Look into discounts where available: Some discounts are available on long-term insurance policies, family insurance or healthy lifestyle programs, and it is worth enquiring.
Conclusion
A budget health insurance plan can absolutely be a strong safety net—as long as you choose it thoughtfully. Focus on the stuff that affects real-life claims: coverage scope, renewability, waiting periods, network hospitals, and out-of-pocket costs.
And if you’re looking for a reliable option, ManipalCigna Health Insurance offers plans that balance affordability with meaningful coverage, so you don’t feel like you’re “settling” just because you’re staying within budget.
FAQs
What is the minimum sum insured I should choose for budget health insurance?
A practical starting point is coverage that can handle at least one hospitalization without draining your savings. Many people align it with annual income, but your city’s medical costs and family health history matter too.
Can pre-existing conditions be covered in a budget plan?
Yes, a lot of budget plans do include pre-existing conditions with a waiting period. Never purchase without first verifying the actual waiting time and condition-based regulations.
Does a lower premium mean lower coverage?
Not always, but it can. In some cases, the premium is cheaper since the plan has limits, exclusions or higher co-payments therefor,e one should compare benefits and not only price.
How can I maximize No Claim Bonus benefits?
Avoid filing claims for minor, manageable expenses if doing so doesn’t strain your finances. Over time, claim-free years can increase your coverage or reduce premiums, depending on the policy.
Are there any tax benefits for budget health insurance?
Yes, health insurance premiums may qualify for tax deductions under applicable sections of the Income Tax Act, subject to eligibility and limits. It’s a nice benefit, but the bigger win is financial protection during a medical emergency.
