What is Health Insurance?
Health Insurance is a kind of insurance that provides coverage for medical expenses to the policy holder. Depending on the health insurance plan chosen the policy holder can get coverage for critical illness expenses, surgical expenses, hospital expenses etc .It offers financial security to meet health related contingencies. You can save up to 60% on insurance premiums by using Policy2cover.
Why do you need Health Insurance ?
Key Benefits of Health Insurance
Changing lifestyles are causing diseases with expensive and prolonged treatments. A Health insurance plan helps cushion your family finances from unexpected large medical expenses. Some of these benefits include-
Reimburses medical expenses
It typically reimburses you for the expenses covered by the policy and incurred during the episode of the medical emergency.
A Cashless policy enables the common man to receive good quality healthcare services without having to pay anything from his end. Rather than paying for the medication by struggling and arranging money, cashless medical insurance offers a refreshing alternative where the health insurance company will directly pay for your hospital expenses.
Lump payment for critical illness
A health insurance plan covering large number of important critical illness can provide the wide ranging protection that you and your family needs. It provide the lump sum payout on detection of the disease, it also provide additional benefits such as provision of regular income a for a period of time, and waiving off the requirement to pay premium for the health insurance plan.
Daily cash payments during hospitalisation
A good health insurance plan would meet another important requirement of daily cash expenses that arise during stays at the hospital. Typically, a percentage of the total insurance amount is paid as daily cash benefits.
Premiums paid under health insurance plans are eligible for deduction upto Rs 25,000 under Section 80D of the Income-tax Act, 1961.
Types of HealthInsurance
Individual Health Insurance Plan
Individual health insurance provides a separate sum insured for each insured member.
In individual health insurance policies, one member’s expenses do not impact the other family member’s cover. In the unfortunate incidence of more than one member being hospitalized in a given policy year, their individual plan is bound to cover their expenses if they have selected an adequate sum insured.
Family Floater Insurance Plan
Made for families, a family floater medical insurance policy provides coverage to the entire family under a single sum insured. Under this, a fixed sum insured is available for any or all the members insured for one or more claims during the tenure of the policy. Thus, if any of the insured members falls sick and needs hospitalization, the sum insured of the policy can be utilised by them.
A family may include individual, spouse, dependent children, parents and parents-in-law.
Critical illness plans
These plans offer a fixed lump sum benefit in case of a critical illness being diagnosed. The critical illness or disease covered should be covered under list defined under the plan. The lump sum benefit offered by this plan can help cover not only the treatment cost but also act as an income supplement.
Hospital Cash/Surgical benefit plans
These plans offer fixed payouts in case of defined hospitalization events which may include being admitted to the hospital, daily stay- recuperating benefit in case of prolonged stay and also lump sum payouts for a listed surgery.
Accident insurance plans
These plans offer a pre-defined lump sum amount on the occurrence of death, disablement or broken bones due to an accident. An accident insurance plan may also cover medical expenses & emergency ambulance charges and provide an education fund for dependent children.
How to Choose Best Health Insurance ?
There are several parameters to be considered before you invest in a health insurance plan. Some of them are-
Your budget- One needs to consider the financial budget of the family, based on which he/she invests in a health insurance plan that covers all risks related to health of the insured and their family members.
Co-payment- Another consideration factor that one must consider is whether or not the health insurance plan provides a co-payment facility. A standard feature, co-payment is defined as a fixed percentage of each claim amount that has to be paid by the insured.
Number of family members covered- While investing in a health insurance plan, one must always consider the number of family members that shall benefit from the policy. Most insurance providers cover up to 4 to 6 family members under a family floater health insurance plan in India.
Claim settlement process- Claim settlement was a cumbersome process which obstructed a person from investing in a health insurance plan. All insurance providers in today’s day and age, provide easy, hassle-free claim settlement procedures that makes it convenient for the insured.
Addition of new family member- Addition of a new family member is a moment of joy. Hence, when investing in a health insurance plan, one must also consider the conditions in the policy in case you wish to get the new family member added and insured under your health insurance policy.
Compare health insurance plans- Before investing in a health insurance plan, one must compare the policies from the best insurance providers and select the one that best suits his needs.
What is covered ?
Health insurance plans offered in India provide cover for the following essential health benefits:
In-Patient Hospitalization - Medical expenses related to hospitalization due to an illness or an accident, which is for a period of more than 24 hrs.
Pre-Hospitalization - Medical expenses that one incurs due to illness during the days immediately preceding the hospitalization.
Post-Hospitalization - Medical expenses that one incurs for a certain period after being discharged from the hospital.
Day-Care Procedures - Medical expenses for treatments, which do not require 24 hours hospitalization due to technological advancement.
Domiciliary Treatment - Covers the expenses for treatment done at home for which hospitalization would be needed.
Emergency Ambulance - Costs related to using ambulance service for reaching the hospital.
Ayush Benefit - Treatment done using Ayurveda, Unani, Sidha and Homeopathy.
What is not covered ?
There are a few benefits not covered by health insurance plans in India. They are-
Pre-existing medical conditions- Pre-existing medical conditions are the ailments that you might already be suffering from while applying for insurance. In all probability, pre-existing medical conditions are not covered under medical insurance plans. However, health insurance providers have started providing coverage for pre-existing medical conditions after a waiting period ranging between two to four years.
Cosmetic surgeries- Cosmetic surgeries are one of the most common health insurance exclusions. However, cosmetic or plastic surgeries that are performed after accidents are covered in several health insurance plans. Also, joint replacements and dental treatments are usually excluded in health insurance policies.
Injuries caused during suicidal attempts- An insured is not covered in case he intentionally causes harm to himself. Hence, injuries caused during suicidal attempts are not covered in health insurance plans by any insurance provider.
Therapies- Health insurance plans do not cover therapies such as acupuncture, naturopathy, magnetic therapies and alternative forms of therapies.
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