Health Insurance is a medical insurance policy that offers financial coverage for medical expenses when the policyholder is hospitalized. Health Insurance Companies cover the insured with the facility of cashless hospitalization at a network hospital or provide a reimbursement for the incurred expenses.
Health Insurance plan are the insurance plans that reimburse the policyholder for their medical expenses that include surgeries, treatments, hospitalization, and injuries, or a direct payout of some pre-determined amount to the insured. Health Insurance Plans also offer coverage for cashless hospitalization facility at network hospitals during policy term.
With medical costs spiraling out of control and the increase in shift to lifestyle diseases, healthcare today is at its all-time high in terms of treatment costs. In the event of an unforeseen illness, you may have no option other than to utilize your hard-earned savings, built over your lifetime. Finally, what’s more important than your health and what better way to protect it than with the right Health Insurance Plan.
A Health Insurance plan ensures complete peace of mind and makes sure that you use your hard-earned savings for the real reasons – Be it your child’s higher education or his dream wedding, a well-deserved family vacation or just about anything you dreamt of all your life.
For those who have a family, we recommend a family floater instead of a standalone policy since the probability of all family members needing hospitalization at one go is remote.
Even if your employer offers group medical insurance, get your own cover. A change of job or retirement could leave you without health insurance. Getting a fresh cover after 45 is anyways difficult.
Thus, there is no debating the importance of having insurance in a country like India where medical expenses are skyrocketing. Everyone must buy a good health insurance policy that includes medical costs, hospitalization costs, medication and laboratory test costs, including critical illness. Don’t get confused with questions like,
Which Health policy to buy?
Does it cover every eventuality?
What illnesses are excluded from this cover?
We are here to resolve all such confusions you have.
Benefits of Life Insurance Plans
1. Coverage against Medical Expenses
Health Insurance is used to cover medical expenses in case of ailment so that the insured receives best medical care without any monetary strain.
Health Insurance preliminary covers medical bills including pre and post hospitalization, Pre-Existing Diseases (PED) are covered after a certain waiting period or premium loading, ambulance charges covered, Room Rent covered, and many other benefits available.
2. Coverage against Critical Illness
Health Insurance provides critical illness cover on payment of certain premium, against life treating diseases such as Kidney failure, Cancer, Bone Marrow Transplant, etc. Upon diagnosis of any of the critical illness from the predetermined list mentioned in policy you are entitled to receive lump sum payment of Sum Assured as per policy terms. This received amount may be utilized for treatment of the ailment or any other financial obligation if any.
3. Tax Benefits
Under Income Tax Act, 1961, premium paid towards one’s self, spouse and 2 kidsare entitled for tax rebate up to Rs 25,000/- and if the premium is paid towards parents an additional Tax rebate up to Rs 50,000/- is applicable. In short, a total Tax rebate that can be availed is Rs 75,000/- per year applicable for FY 2019-20.
4. Cashless Treatment
Every medical insurance organization has tie ups with various nursing homes and hospitals across the country called “empaneled hospitals”. If you are admitted to one of these, you don’t need to pay anything. You only need to mention your policy number and everything else will be taken care of by the hospital and your insurer. This type of plan is preferred because there is no stress of claim reimbursement and arranging documentation. However, if your expenses go beyond the sub-limits specified by the insurance cover or marked as not covered by the provider, then you will have to settle it directly with the hospital. Another important thing to remember is that cashless Mediclaim is not available if one gets treatment at a hospital which is not a part of the hospital network of the insurance provider.
5. No Claim Bonus
NCB or No Claim Bonus is a bonus provided to the insured if the claim has been file for any treatment in the previous policy year. The reward can be offered either as an increment in the sum assured or as a discount in the premium cost. You can avail this advantage on policy renewal.
Key Points to be checked while purchasing a health insurance;
1. Sum Insured by the Policy.
2. Premium to be paid for the cover.
3. List of Network Hospitals and Claim Settlement Ratio.
4. Sub limit’s & Waiting period applicable.
5. Co-pay if any.
1.Tax Rebate specified is subjected to change as per rules and regulations changes under Income Tax Act, 1961 & Government Budget Announcement.
2. Above mentioned benefits are for illustration purpose, actual benefits will vary depending on the Health Insurance Policy selected by the Individual. Hence, read the policy documents carefully.