What is health insurance? How to invest in health insurance plan? What are the coverage guidelines? What are insurance benefits? Those new to insurance are usually seen finding answers to these questions. But before getting into the details, let’s get a basic understanding of health insurance.
Accidents, illnesses or disabilities never come informed. These sudden health issues might cause you a major financial loss. This is why it is suggested to save beforehand. But, how does one do that? This is where insurance policies come in. A type of insurance coverage, health insurance compensates you for various medical and surgical expenses incurred. It is a coverage provided by the Insurance companies to protect you from unforeseen medical expenses that might occur in the future.
With rising healthcare costs, the need for health insurance plans is increasing as well. The health insurance claim can be settled in two ways. It is either reimbursed to the insurer or is paid to the care provider directly. Also, the benefits received on health insurance premiums are tax-free.
The health insurance companies offer various types of policies as mentioned below:
This insurance covers the risk of any serious illness. It protects you from any critical illness that might occur in the future. The premium you pay for this insurance gets you a cover for a certain sum assured. In case of illness, the insurance company honors claim till the sum assured value.
For example, you buy a health policy for which you pay a premium of INR 10,000 and the coverage that you get is INR 10,00,000. So, when you are diagnosed with any critical illness in future, the insurance company will cover your medical expenses up to the sum assured of INR 10,00,000. Some of the various crucial illnesses covered by insurance firms include cancer, major organ transplant, stroke, first heart attack, kidney failure, paralysis, multiple sclerosis etc.
It is a type of insurance where the insurer is reimbursed for the hospitalisation charges. Also, the cost of medication or surgery, that you or your family members went through for diseases covered in this insurance are reimbursed. These policies are commonly known as “Mediclaim Policies”.
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It is one of the simplest types of health policies. Under the individual mediclaim policy, you receive compensation for the hospitalisation expenses occurred by you up to a certain assured limit. Let’s understand with an example. If there are three members of your family and each one of you gets an individual cover of INR 1,00,000 under this policy then all the three policies are different. Each one of you can claim separate INR 1,00,000 if needed.
Under the family floater Plans, the sum assured limit covers the medical expenses of the entire family or certain individuals that come under its cover. The premium paid under this plan is comparatively less than that paid under the Individual Medical Plans. Let's understand with an example. Assume that a family of four members gets a Family Floater Plan and is allowed a claim of INR 10,00,000. Now, any individual from that family can claim an amount up to INR 10,00,000 as mediclaim. Also, if a person has claimed INR 4,00,000 in a specific year, the mediclaim amount for other family members gets reduced to INR 6,00,000 for that particular year. From the next year, the amount again gets refreshed to INR 10,00,000.
Unit Linked Plans or ULIPs are plans that are linked to investments in which one can earn returns. So, when you choose a Unit Linked Health Plan you associate a health insurance with that investment. With this insurance, you earn returns at the end of the insurance term depending on the Market performance. Though these plans are expensive, they are recommended to those having a sound market knowledge.
Group health policy or Group Mediclaim guards the regular employees and their dependents covered under the policy in case of hospitalisation due to certain disease or injury.
You must not pick the plan randomly. Rather compare between different health policies and go for the best. This exercise may consume some time, but will be beneficial for a lifetime, as the policy will stay with you for the long-term.
Your prospective plan should offer cover against a wide Range of medical expenses. Depending on your family medical history, you should take adequate cover on your policy.
Pick such policy which can be customized with other riders.
Paying premiums regularly on-time for a long-term is a commitment. Therefore, ensure you opt such a policy which is affordable for you in all situations.
As a matter of fact, health is an essential wealth. And to maintain a healthy life getting a health insurance is important. It creates a safety net in case of any unforeseen medical expenses.However, it is suggested to choose a health policy wisely. Do not just look for low-premium plans, know the best-suited plans for you, the claim ratio (of the insurer) and the claim process well before you buy. So what are you waiting for? Get a health insurance now! Insure your health for a better future.
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