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WHAT IS HEALTH INSURANCE
Health insurance is a type of insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalisation costs, cost of medicines or doctor consultation fees.
Why do we do health insurance?
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With the constant increasing prices of healthcare in our country, and with the ever rising instances of diseases, health insurance today is a necessity. Health insurance provides people with a much needed financial backup at times of medical emergencies. Health risks and uncertainties are a part of life.
Types of Health Insurance
There are two basic types of health insurance.
1. Mediclaim Plans
Mediclaim or hospitalisation plans are the most basic type of health insurance plans. They cover the cost of treatment when you are admitted to the hospital. The payout is made on actual expenses incurred in the hospital by submitting original bills. Most of these plans cover the entire family up to a certain limit.
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2. Critical Illness Insurance Plans
Critical Illness Insurance Plans cover specific life-threatening diseases. These diseases could require prolonged treatment or even change in lifestyle. Unlike hospitalisation plans, the payout is made on Critical illness cover chosen by the customer and not on actual expenses incurred in the hospital. The cover gives the flexibility to use the monies for changing lifestyle and medicines. Also, it's a substitute for income for the time you could not resume work due to illness. Payout under these plans are made on the diagnosis of the disease for which the original medical bills are not required.
What are the benefits of health insurance?
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Health insurance is not just for the individual insured. You can obtain a cover for your family members as well under the same scheme. The cover offered under group insurance may not be sufficient if you have four or more members in your family, and corporate insurance plans provided by your employer may not have an adequate sum-insured. To stay prepared for meeting escalating healthcare costs, health insurance is invaluable. Here are the benefits of buying health insurance:
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Cashless hospitalization: Most insurance providers have tie-ups with major hospitals across the country, and if you avail of medical care at any of those hospitals, your treatment will be cashless.
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Added benefits: Some health insurance providers cover the costs of transportation via ambulance, expenses incurred for up to 30 days before or 60 days after hospitalization, maternity expenses, and even alternative therapy costs under your health plan.
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No claims bonus: If you do not place any claims in a year, at the time of renewal of the policy, you can be awarded a bonus. For example, a percentage of the sum insured may get added to your annual sum insured during renewal.
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Medical check-ups: You can regularly monitor your health with free health check-ups provided by some companies at designated healthcare centers. Thus, your policy helps not only in a cure but in prevention as well.
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Family health protection: Not just you but also immediate family members dependent on you like your children, spouse, parents, and siblings can have a health policy. You can take proper care of the health of your loved ones with the right health insurance plans.
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Tax savings: As per the Income Tax Act, 1961, you can get tax deductions* for the premium you pay for your health insurance plan under section.
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Financial security: With a good health insurance plan, you can stay assured of prompt financial help in times of your need. You are always ready to pay for medical expenses, without having to draw in your savings, which helps you stay financially secure for the future.
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Benefits of fixed health insurance plans: With such plans, you receive the money upon diagnosis without having to submit any hospital bills. Moreover, the money is paid to you without being subject to any sub-limits on expenses such as room rent, hospitalization charges, etc.