A health insurance policy is essentially an insurance product that covers the cost of treatment or medical surgeries. The policy reimburses the cost incurred due to illness or accidental injury or may pay the healthcare provider for extending patient care.
Given the rise in the cost of healthcare and treatment, it is considered a wise move to avail of comprehensive health insurance. Having a comprehensive health insurance policy has become essential to safeguard one’s financial future so that the insured or their family can access medical care as and when required without any difficulty.
On that note, let us understand what health insurance is, how the policy works, and its types and associated benefits.
How does health insurance work?
When an individual purchases a health insurance policy they are presented with premium quotes by the insurer. Typically, factors such as age, medical history, gender, and required sum assured are taken into consideration to raise a quote. Some insurers may even ask the policy buyer to get a few medical tests done to decide the cover amount and the premium cost.
These policies usually come with a waiting period ranging from a few months to years. During this period, they are not allowed to raise any non-emergency claims. After the waiting period, if the insured requires any surgery they can get treated at any network hospital and then approach the policy provider to settle the payment. Some policies also cover the pre and post-hospitalization charges. However, not all conditions will be covered by the policy. Hence, policy buyers are advised to know more about what is health insurance and check the list of exclusions and terms of claims to ensure comprehensive coverage.
Types of health insurance plans
Different individuals have different health requirements, so they should pick a policy that suits their needs and offers them the required support. Individuals have the option to choose a suitable plan from the following –
Individual Health Insurance
One can purchase this insurance plan for themselves, their parents, children, or spouse. This policy type covers medical expenses, such as hospitalization charges, room rent, and daycare procedures. Note that under this policy, each individual has their sum insured.
Family Floater Health Insurance
This policy allows individuals to cover their family members under one plan, where everyone shares the sum insured. A family floater health plan is cheaper than an individual health insurance plan and is considered to be more suitable for nuclear families.
Senior Citizens Health Insurance
This policy is designed to cater to the specific medical needs of senior citizens. Since senior citizens are considered to be more likely to have health issues, these insurance plans may require them to get a full body medical checkup. As a result, it can be more expensive than regular health insurance plans.
Critical Illness Insurance
Lifestyle disorders and health issues like stroke, cancer, cardiac diseases, and kidney failure are on the rise and are expensive to manage. This makes having health policies like critical illness insurance crucial. Notably, individuals can purchase a standalone necessary illness insurance policy or avail it as a rider or add-on to an existing health plan.
Many lifestyle-related diseases are on the rise. Health issues such as cancer, stroke, kidney failure, and cardiac diseases can be expensive to deal with and manage long-term. This is precisely why critical illness insurance policies have been created. They can either be purchased as a rider or add-on with your regular health insurance plan or separately as their plan. Often these policies cover specific concerns and offer a single lump sum payout following diagnosis.
Benefits of Health Insurance Plans
Having a health insurance policy is a must today for more than one reason. Let us check out the benefits of health insurance plans that make it a crucial necessity for everyone –
Helps Deal with Rising Medical Costs
People purchase health insurance policies to safeguard their finances against ever-rising medical costs. An accident or medical emergency could end up costing you more than a few thousand rupees. With a medical insurance plan, you enjoy coverage for everything from ambulance charges to daycare procedures, making it easier to get the care you need to recover.
Critical Illness Cover
Many health insurance policies will also offer coverage for critical illnesses at an additional cost. Given the rising incidence of lifestyle-related diseases today, this is another crucial cover to have. You will be provided with a lump sum payout in case you are diagnosed with any of the covered critical illnesses. These issues are often expensive to deal with and manage, so critical illness coverage is another vital benefit of having health insurance.
Easy Cashless Claims
Usually, leading health insurance companies collaborate with multiple network hospitals that offer cashless claims. Such a feature makes the process of seeking emergency medical treatment easy. When the policyholder reaches out to a network hospital, they do not need to pay for covered medical treatment. This means the policyholder only pays for the non-covered medical charges and deductibles.
Tax Savings On Premium
Policyholders are entitled to claim tax benefits on their insurance policy. Section 80D of the Income Tax Act allows policyholders to claim benefits on the premium amount they paid in a financial year.
Against a health insurance plan, one can claim benefits for oneself, spouse, parents, and kids below 60 years can claim tax benefits of a maximum of Rs.25000 annually from their taxable earnings. Insurance policies purchased for parents over 60 can claim an extra Rs.50000.
These features and benefits make health insurance policies a must in this economy. A comprehensive health insurance plan can help individuals build reliable financial security for their future and their family members to rely on in times of emergency.
However, to make the most insurance policy, individuals must pick a plan that matches their needs and financial standing. Additionally, they should select a health insurance provider that offers lucrative features at an affordable premium, with minimal exclusion and a wide network of hospitals. This will help them to avail timely treatment and ensure claim approvals.