Acquiring health insurance is a vital step for everyone, yet navigating the array of options available can pose a challenge without clear guidance on what factors to consider. In this guide, we will lead you through the steps necessary to make an informed decision when purchasing health insurance.

Step 1: Identify Your Core Needs

Before diving into the world of health insurance policies, take the time to assess your primary requirements. Determine whether you need coverage for pre-existing conditions, maternity benefits, or other specific needs. Tailoring your search based on these essentials will streamline the process and ensure you find a policy that aligns with your needs. For instance, if you're securing coverage for elderly parents, opting for a senior citizen policy may offer more benefits suited to their age group, such as reduced waiting periods for pre-existing conditions.

Step 2: Determine Your Coverage Amount

Your health insurance coverage should ideally be at least six times your monthly salary. However, this amount should be adjusted based on the number of individuals covered under the policy. For instance, if you have a family floater policy covering multiple members, the total coverage should be higher to ensure each member receives adequate protection.

Step 3: Understand Coverage Details

Once you've established your core needs and desired coverage amount, it's crucial to delve into the specifics of each policy to make an informed choice. Here are four key aspects to consider:

Inpatient Hospitalization: Look for policies offering comprehensive coverage for inpatient hospital stays, ensuring you receive maximum benefits.

Day-Care Treatment: Check whether the policy covers procedures that don't require overnight hospitalization, such as chemotherapy or dialysis.

Room Rent Allowance: Some policies impose caps on room rent, so be sure to understand these limitations and choose accordingly.

Pre and Post-Hospitalization Coverage: Review the policy's coverage for expenses incurred before and after hospitalization to avoid any surprises.

Step 4: Familiarize Yourself with Policy Terms

Before finalizing your decision, familiarize yourself with important policy terms such as waiting periods, co-payment clauses, exclusions, and sub-limits:

Waiting Period: Understand the waiting periods associated with specific illnesses or procedures to manage expectations regarding when coverage will commence.

Co-payment Clause: Be aware of any cost-sharing arrangements where you may be required to contribute a percentage of medical expenses.

Sub-limits: Policies may impose caps on certain procedures or facilities, so ensure these align with your needs.

Exclusions: Review the list of procedures or illnesses not covered by the policy to avoid any misunderstandings later on.

Step 5: Evaluate Cashless Hospitalization Network

Assess the insurer's network of hospitals offering cashless facilities, focusing on the quality and reputation of these establishments rather than sheer quantity.

Step 6: Explore Enhancement Facilities

Given the escalating costs of healthcare, inquire about options to enhance your coverage amount over time:

No Claim Bonus (NCB): Take advantage of NCB rewards for claim-free years, which can increase your coverage amount without a corresponding rise in premiums.

Restoration Benefit: Ensure the policy includes a restoration feature to cover additional expenses beyond the initial coverage amount without extra charges.


When purchasing health insurance, prioritize finding a policy that meets your specific needs rather than solely focusing on the premium amount. By following these six steps, you can navigate the selection process with confidence and secure comprehensive coverage for yourself and your loved ones.