What is Health Insurance?
Health is wealth is a well-known adage but one only values health when it is declining. Today, high stress levels, poor food choices, environment-related hazards, and more can cause health issues to crop up sooner. The constant doctor visits and medical bills can be emotionally and financially taxing.
What is a health insurance policy?
A health insurance policy saves you and your family from the burden of incurring and paying for your treatment and recovery in the case of diseases and accidents. By paying a premium monthly or annually, medical insurance saves you from falling into debt.
What are the different types of health insurance?
In India, several types of health insurance plans exist such as the following.
- Individual health insurance
It covers different medical expenses of the policyholder such as hospitalisation and rent. Each family member will get a particular sum insured under this policy which can be claimed.
- Family floater health insurance
This single plan covers all your family members and is the most affordable type of health insurance. It enables you to collectively make claims up to the sum insured.
- Senior citizen's health insurance
Only senior citizens are eligible for this plan and it covers the medical requirements required by aged individuals. Some policies include psychiatric expenses.
- Critical illness health insurance
This is offered as a standalone plan or can be added on with other health insurance plans. It covers the cost of critical illnesses such as heart attack, cancer, and kidney failure.
- Group health insurance
This can be purchased by a group manager for many people such as an employer for his employees. It covers basic health needs.
What does health insurance cover?
A health insurance policy covers the policyholder’s medical and surgical costs. This includes injury, disease, and critical illness.
What are the benefits of health insurance?
A health insurance policy can be quite beneficial to the policyholder and his loved ones.
- Covers rising medical costs
As medical costs are increasing by the day, the policyholder and his family can rest assured they will receive treatment when needed without worrying about out-of-pocket costs.
- Make cashless claims
Health insurance providers have tie-ups with network hospitals and getting instant treatment from them becomes faster and more convenient as you don’t need to pay for the covered treatments.
- Tax savings
The policyholder can save up to Rs. 1 lakh in taxes as mentioned in Section 80D of the Income Tax Act, 1961 if he has opted for a health insurance plan.
How to choose a health Insurance plan?
A policyholder needs to ensure the following when choosing a health insurance policy.
- Sum insured
Experts recommend getting a cover that is at least six times your current salary. If you have a critical illness or if you wish to start a family soon, make sure those costs are covered.
- Network hospitals
An insurance provider will have network hospitals where you can get treatment. You must ensure the hospital you feel comfortable with is on the list.
- Analyze the fine print
Read the fine print and check what type of hospitalization costs are covered, what additional benefits are provided, and which expenses are not covered.
Key Takeaways
A health insurance policy saves the policyholder’s family from selling assets, jewellery, and other prized possessions to pay for the rising medical costs. With lifestyle diseases becoming common, it is best to choose a health insurance plan based on the insured sum, coverage, exclusions, and network hospitals. Protect your future today by buying a health insurance plan that suits your needs.