How to choose the best health insurance plan in India
Learn how to choose the best health insurance plan in India with tips on coverage, claim process, premiums, and key questions to ask before buying.
Pazcare Team
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Updated on:
July 23, 2025
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Quick Summary
Choosing the right health insurance plan in India isn't just about affordability—it's about ensuring your family is financially protected during unexpected medical emergencies. With rising healthcare costs and increasing lifestyle-related illnesses, it's critical to assess coverage benefits, network hospitals, claim settlement ratio, waiting periods, and customer service before making a decision. Whether you’re looking for individual or family coverage, the best policy is one that aligns with your specific health needs and long-term goals.
Choosing the right health insurance plan in India isn't just about affordability—it's about ensuring your family is financially protected during unexpected medical emergencies. With rising healthcare costs and increasing lifestyle-related illnesses, it's critical to assess coverage benefits, network hospitals, claim settlement ratio, waiting periods, and customer service before making a decision. Whether you’re looking for individual or family coverage, the best policy is one that aligns with your specific health needs and long-term goals.
Health insurance is no longer a luxury, it’s a necessity. With rising medical inflation and an alarming increase in health data that one in every two individuals has a lifestyle disorderso nowinvesting in the right health insurance plan is crucial. So, getting health insurance at an early stage is what helps in case of unexpected medical emergencies.
In India, numerous health insurance companies offer a wide variety of plans, making it challenging to select the right one. To choose the best health insurance plan in India, it’s important to evaluate key factors such as coverage benefits, network hospital list, claim settlement ratio, waiting periods, co-pay terms, and customer service quality. A well-informed decision today can save you lakhs in the future and offer peace of mind during critical times.
Here is how you can choose best health plan in India
1. Make sure it's affordable
First and foremost it is important to buy a health insurance plan that suits your budget and matches your needs. Affordability is an important factor to consider while purchasing health insurance.
A great way to begin is to buy a health cover which offers reasonable coverage at affordable premiums. With time, you can upgrade your plan and increase coverage with the increase in income, family size, and requirements.
2. Choose the coverage
If you have more members in your family say dependent parents, spouse and children it is advisable to sign up for family floater plans rather than a Individual health insurance plan. Choose the best health plan that protects you against a wide range of illnesses and offers benefits like pre and post hospitalization, daycare expenses, road ambulance expense, etc. Also, opt for a plan considering other factors such as your family members’ medical history.
3. Choose your sum insured
Healthcare is getting expensive every year. That’s why it’s smart to choose a health insurance plan that gives you enough coverage and a high sum insured. This means your plan should help you pay for big treatments if you fall sick.
For example, an organ transplant can cost around ₹6 lakhs. For a middle-class family, that’s a huge amount. But if your plan covers it well, you won’t have to pay much from your own pocket. It also gives you peace of mind during tough times.
4. Check waiting period for pre-existing diseases
Every health insurance plan has its own rules about waiting periods for pre-existing diseases. This means if you already have a health condition before buying the policy, you’ll need to wait for a certain time before you can make a claim for its treatment. The waiting period usually ranges from 1 to 4 years depending on the insurer. So, it’s better to choose a plan with a shorter waiting period if you have pre- existing diseases.
Also, mediclaim policies may have shorter waiting periods, but they don’t offer as wide coverage as regular health insurance plans
Before buying a health insurance plan, check how long it will cover you. Some plans only let you renew the policy until the age of 65, while others offer lifetime renewability. Renewing your policy is very important, especially as you grow older and may need more medical care. So, choose a plan that fits your and your family’s health needs, especially if there’s a history of illness.
6. Claim settlement ratio
Claim settlement ratio is an important factor to consider before opting for any health insurance plan from an insurer. Claim settlement ratio is the number of claims settled by the insurance company over the total number of claims received by them. Higher the claim ratio, higher is the chance of your claim not getting rejected without a valid reason. Hence, always opt for health plans from the insurer who has a high claim settlement ratio.
7. Claim settlement process
After the claim settlement ratio, the next important factor is the claim settlement process. Many insurance companies have an in-house claim settlement department within them to settle the claims raised. Whereas many other insurance providers get the help of Third Party Administrators (TPA) to settle the claims.Choose that plan where the claim settlement process is smooth and make sure you get the plan that has both cashless and reimbursement claim settlement.
8. Customer reviews
While purchasing a health insurance plan, always check customer experience and the reviews. There can be mixed reviews which highlight the pros and cons of the insurer and its service. This can help you make an informed decision and choose that plan which works best for you.
Investing in a health insurance plan is always a wise decision, owing to the current rate of medical inflation costs and increase in hospitalizations due to lifestyle diseases. However, there are plenty of insurance providers in the market with a ton of insurance plans, so one has to choose a plan that suits them and their family. Always make sure you check for the benefits and coverage to purchase the best health insurance policy for you and your family.
To make a smart choice, always:
Compare coverage and benefits across providers
Assess your family’s specific healthcare needs
Look for plans that include comprehensive features like cashless claims, pre/post-hospitalization cover, and annual health check-ups
Choosing the right policy ensures you're financially protected and prepared for unexpected medical emergencies, without compromising your peace of mind.
Make Smarter Health Insurance Decisions with Pazcare
At Pazcare, we simplify the process of selecting the best health insurance plan for you and your team. Whether you're an employer building a wellness-first culture or an individual looking for the right coverage—our team of experts helps you compare, customize, and manage policies effortlessly.
👉 Explore top-rated health insurance plans with expert support and 24x7 claims assistance.
What are the common types of group health insurance plans?
The different types of group health insurance plans are E, ESC and ESCP policies. The coverage offered are for employees only, employees, spouse and children only and employees, spouse, children and parents/parents-in-law.
How to select a good health insurance plan in India?
Choose a plan that offers wide hospital network coverage, low waiting periods, clear claim processes, and includes essential benefits like maternity, pre-existing conditions, and day care procedures.
How to choose the best group health insurance plan for employees?
Look for a customisable plan that fits your team’s needs, covering dependents, mental health, maternity, and more. A good plan balances cost-effectiveness with strong coverage and smooth claim support from the insurer or broker.
Choosing the right health insurance plan in India isn't just about affordability—it's about ensuring your family is financially protected during unexpected medical emergencies. With rising healthcare costs and increasing lifestyle-related illnesses, it's critical to assess coverage benefits, network hospitals, claim settlement ratio, waiting periods, and customer service before making a decision. Whether you’re looking for individual or family coverage, the best policy is one that aligns with your specific health needs and long-term goals.
Health insurance is no longer a luxury, it’s a necessity. With rising medical inflation and an alarming increase in health data that one in every two individuals has a lifestyle disorderso nowinvesting in the right health insurance plan is crucial. So, getting health insurance at an early stage is what helps in case of unexpected medical emergencies.
In India, numerous health insurance companies offer a wide variety of plans, making it challenging to select the right one. To choose the best health insurance plan in India, it’s important to evaluate key factors such as coverage benefits, network hospital list, claim settlement ratio, waiting periods, co-pay terms, and customer service quality. A well-informed decision today can save you lakhs in the future and offer peace of mind during critical times.
Here is how you can choose best health plan in India
1. Make sure it's affordable
First and foremost it is important to buy a health insurance plan that suits your budget and matches your needs. Affordability is an important factor to consider while purchasing health insurance.
A great way to begin is to buy a health cover which offers reasonable coverage at affordable premiums. With time, you can upgrade your plan and increase coverage with the increase in income, family size, and requirements.
2. Choose the coverage
If you have more members in your family say dependent parents, spouse and children it is advisable to sign up for family floater plans rather than a Individual health insurance plan. Choose the best health plan that protects you against a wide range of illnesses and offers benefits like pre and post hospitalization, daycare expenses, road ambulance expense, etc. Also, opt for a plan considering other factors such as your family members’ medical history.
3. Choose your sum insured
Healthcare is getting expensive every year. That’s why it’s smart to choose a health insurance plan that gives you enough coverage and a high sum insured. This means your plan should help you pay for big treatments if you fall sick.
For example, an organ transplant can cost around ₹6 lakhs. For a middle-class family, that’s a huge amount. But if your plan covers it well, you won’t have to pay much from your own pocket. It also gives you peace of mind during tough times.
4. Check waiting period for pre-existing diseases
Every health insurance plan has its own rules about waiting periods for pre-existing diseases. This means if you already have a health condition before buying the policy, you’ll need to wait for a certain time before you can make a claim for its treatment. The waiting period usually ranges from 1 to 4 years depending on the insurer. So, it’s better to choose a plan with a shorter waiting period if you have pre- existing diseases.
Also, mediclaim policies may have shorter waiting periods, but they don’t offer as wide coverage as regular health insurance plans
Before buying a health insurance plan, check how long it will cover you. Some plans only let you renew the policy until the age of 65, while others offer lifetime renewability. Renewing your policy is very important, especially as you grow older and may need more medical care. So, choose a plan that fits your and your family’s health needs, especially if there’s a history of illness.
6. Claim settlement ratio
Claim settlement ratio is an important factor to consider before opting for any health insurance plan from an insurer. Claim settlement ratio is the number of claims settled by the insurance company over the total number of claims received by them. Higher the claim ratio, higher is the chance of your claim not getting rejected without a valid reason. Hence, always opt for health plans from the insurer who has a high claim settlement ratio.
7. Claim settlement process
After the claim settlement ratio, the next important factor is the claim settlement process. Many insurance companies have an in-house claim settlement department within them to settle the claims raised. Whereas many other insurance providers get the help of Third Party Administrators (TPA) to settle the claims.Choose that plan where the claim settlement process is smooth and make sure you get the plan that has both cashless and reimbursement claim settlement.
8. Customer reviews
While purchasing a health insurance plan, always check customer experience and the reviews. There can be mixed reviews which highlight the pros and cons of the insurer and its service. This can help you make an informed decision and choose that plan which works best for you.
Investing in a health insurance plan is always a wise decision, owing to the current rate of medical inflation costs and increase in hospitalizations due to lifestyle diseases. However, there are plenty of insurance providers in the market with a ton of insurance plans, so one has to choose a plan that suits them and their family. Always make sure you check for the benefits and coverage to purchase the best health insurance policy for you and your family.
To make a smart choice, always:
Compare coverage and benefits across providers
Assess your family’s specific healthcare needs
Look for plans that include comprehensive features like cashless claims, pre/post-hospitalization cover, and annual health check-ups
Choosing the right policy ensures you're financially protected and prepared for unexpected medical emergencies, without compromising your peace of mind.
Make Smarter Health Insurance Decisions with Pazcare
At Pazcare, we simplify the process of selecting the best health insurance plan for you and your team. Whether you're an employer building a wellness-first culture or an individual looking for the right coverage—our team of experts helps you compare, customize, and manage policies effortlessly.
👉 Explore top-rated health insurance plans with expert support and 24x7 claims assistance.
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