What is Health Insurance?
Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider.
- Health insurance takes care of your medical expenses and ensures that out-of-pocket expenses are curtailed upto the Sum insured
- A health insurance policy ensures that you can avail cashless treatment at a network hospital without having to pay for them, typically covering 30 days and 60 days pre and post hospitalization, respectively, in most of the Health Insurance plans.
- One can add value to the Base Health Insurance Plan by complementing them with additional add-on products such as Personal Accident (PA) Cover, Critical Illness (CI) Cover and Top-Up. These products are available at a very nominal cost adding benefits which are not part of the Base Health Insurance plan. For Example, A PA plan helps by providing coverage for disability, which is typically not covered under Health Insurance. An individual need not go through any waiting period and medical checkups for a PA cover.
Key Points to Remember
- List of network hospitals and Claim Settlement Ratio
- Sub-limits (if any) and Waiting Period (for PEDs)
- Premium to be paid for the coverage
- Sum Insured by the policy
- Room Rent Limit
- Accident Cover
|Coverage ranging:||from Rs. 2 lakhs to Rs. 15 lakhs|
|Save tax up to:||Rs. 55,000/- under section 80D|
|Policy Modification:||Online and offline|
|Free Health Checkup:||Every Year|
|Get lump sum pay-out:||for a critical illness|
Types of Health Insurance
Everyone needs to secure their own and their family's health. With the increasing cost of healthcare in India, buying a health insurance policy has become almost mandatory for everyone. Medical insurance makes sure not only medical security but also a hassle-free claim resolution. In today’s world of options, people have different choices when it comes to purchasing health insurance. There are various plans readily available in India to include every aspect of a medical emergency. Some popular types of policies are explained below:
Individual Health Insurance Policy:
This health insurance policy provides coverage to an individual against certain illnesses, offering advantages like cashless hospitalisation and various add-ons. The entire sum assured is available for only one individual and the premium is determined by the age of the insured. Under this policy, each insured member is entitled to receive the entire amount separately.
Family Health Plan:
With family health plan, you can include all your family members against multiple diseases under a single cover. This Family Floater Mediclaim Policy offers a fixed sum assured for the family members, which can be availed either by one or all members of his/her family for one or more claims during the tenure of the policy. Family health plans come at a marginally incremental expense.
Senior Citizen Health Insurance
Senior Citizen health insurance is designed particularly for anyone with age above 60 years, offering protection from health issues during old age. According to IRDAI, every firm must include people up to the age of 65 years.
Critical Illness Insurance Plans
This plan is usually brought as a standalone policy or a rider for the treatment of various critical illnesses, such as kidney failure, paralysis, cancer, heart attack etc. As the medication of such illnesses is expensive, the imbursement is also very high. A critical illness is a serious, possibly terminal disease, strictly defined by the provider. Most critical illness policies provide a lump-sum benefit if the insured is diagnosed with one or a number of the specified terminal conditions.
Medical insurance companies today cover such additional costs, including both pre and post-natal care, child delivery (normal or caesarean), which sometimes includes vaccination of newborn babies. This insurance covers the newborn baby up to the validity of this policy. It also covers transportation fee for ferrying the mom-to-be to the nearest network hospital of choice.
These personal accident plans are frequently provided as riders to standard health plans. They include hospitalisation and bear medical outlay, in the event of an accident. These are issued as fixed benefit policies, where specified sums are paid on occurrence of unforeseen events, such as accidents. Such events that can result in death or disability of the person. However, the payout is not related to the expenditure.
Pre-Existing Disease Cover:
After a time of 2-4 years, various policies consider pre-existing diseases, e.g. diabetes, hypertension, kidney failure, cancer etc. Pre-existing disease cover includes the illness that the insured had before purchasing the policy.
Undoubtedly, healthcare is very expensive and nobody wants to fall ill; anyway. So, now we have preventive health care that takes care of you before you fall sick. This policy considers preventive care, such as regular health check-ups, concession in X-ray fees, consultation fee etc. By offering various healthcare provisions, this plan aims at keeping you healthy. Preventive care is medical care rendered not for a specific complaint but focuses on prevention and early-detection of ailments.
Unit Linked Health Plan:
Unit- Linked Health Plan (ULHP) has been introduced recently, which offers a unique combination of health insurance and investment. Despite giving health protection, ULHPs also contribute in building a corpus that can be used to meet expenditures not covered by health insurance policies.
Among the ULHPs available in Indian market, ICICI Pru's Health Saver, LIC's Health Protection Plus, Birla Sunlife's Saral Health and IndiaFirst's Money Back Health Insurance Plan are worth investing your money in. The limit of the cover depends on age, health, gender or other mentioned variables. By opting for this plan, one can save a certain amount to be used to pay for the treatment of pre-existing illnesses that are not covered by a normal health policy during the waiting period.
Things you need to know
The thing about medical emergencies is that they can hit anyone, anytime regardless of age, gender or lifestyle. Since it can't be predicted, one can always be prepared for it. Health Insurance protects everyone in your family against financial loss from the unexpected.It's an agreement between you and your insurance company, where for an annual premium, the insurer pays for your hospitalization and other medical expenses as mentioned in your policy.
This provides for the hospitalization expenses you might face in case of accidents, day-care procedures, surgical treatments or critical illnesses. However, the features, limits and sum assured will vary from insurer to insurer.
Similar to top-ups for mobile network services, this adds supplementary coverage to your existing health plan. The aim is to increase overall sum assured with its corresponding coverage by paying a relatively lower premium.