Health Insurance

Health insurance covers cost of an insured individual's medical and surgical expenses. Subject to the terms of insurance coverage, either the insured pays costs out-of-pocket and is subsequently reimbursed or the insurance company reimburses costs directly.

What is Health Insurance?

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider.

Why You Should Buy Health Insurance?
Maintain Living Standards

Increase in the Incidence of Lifestyle-Related Illnesses

Life expectancy has increased. Thanks to advancement in medicines, the average man is likely to live for around 84 years by 2040. And so has stress due to sedentary lifestyle.This has also given rise to the early onset of chronic diseases like cancer, lung conditions and stroke, claiming younger lives. Health insurance mitigates the financial risk that may befall a person irrespective of age.

Low on Price

Health Insurance Coverage is more than Just Hospitalization

Most/Many health insurance plans give coverage for day care procedures and OPD, other than the treatments that involve serious hospitalization. There are also health plans that cover vector borne diseases like dengue.

Rider Benefits

Increase in Out-of-Pocket Expenses

with the healthcare industry in India witnessing double-digit inflation, it is getting extremely expensive to treat ../common ailments in India. As a result, this has put a dent in an individual’s pocket. Buying health insurance can double up as your emergency financial fund while preparing you for the troubled times.

Tax Benefits

Your Group Health Cover may not be Sufficient

A group health plan may or may not cover all your family members. The sum insured limit in a group plan is also less, which may not be enough to meet all the medical expenses incurred.And then as you’ll grow older, you might need frequent medical attention. Before that you may not want to put yourself at the risk of being under-insured.

Types Of Health Insurance:

• Reimbursement (Indemnity) based health insurance plans: The most popular form of health insurance in the market, reimbursement based health insurance plans more ../commonly known as “mediclaim”. These plans reimburse you for any expenses incurred in the event of hospitalisation and also cover expenses associated with diagnostic or screening requirements before hospitalisation or post hospitalisation treatments.

• Individual Health Insurance Plan: Individual health insurance covers a single person; it is usually a person who is paying the premium. Under this, the chosen sum insured covers only one individual insured under the plan against various disease and illnesses.Moreover, one can also enrol family member(s) for coverage by choosing different sum insured to be applicable to each individual insured member.

• Family Floater Insurance Plan: Tailor made for families, it acts as an umbrella to give coverage against the health risks.Under this, a fixed sum insured is available for any or all the members insured for one or more claims during the tenure of the policy. Thus, if one of the insured member falls sick and needs hospitalization, the (total) sum insured of the policy can be utilised by him/her.A family may include individual, spouse, dependent children and in some cases, parents and parents-in-law.

• Fixed Benefit Hospitalisation Plans: A new breed of health insurance plan first offered by Life Insurance companies and later offered by all insurance companies, these plans offer fixed benefit pay-outs on the occurrence of some well-defined diseases/illnesses or hospitalisation occurring. These plans not only attempt to partly cover costs associated with hospitalizations but also in some cases act as an income substitute.

• Critical Illness Plans: These plans offer a fixed lump sum benefit in case of a critical illness occurring, the critical illness or disease covered would be as the list defined under the plan. Today critical illness plans covering 6 t0 39 critical illnesses depending upon the product offering them. The lump sum benefit offered by this plan covers not only cost but also acts as an income supplement or takes care of out of hospital treatment.

Key Factors to Consider for Health Insurance:

Buy health insurance when young and healthy

Health risks increase with growing age.Younger you are, lesser will be the amount of premium- An individual’s age is the major deciding factor for the calculation of health insurance premium.

Take advantage of the waiting period

Nearly all health insurance policies has a waiting period for 2-3 years for certain pre-existing diseases.When you buy a health insurance cover early in life, you can easily take advantage of the waiting period rather than serving it at a later stage when your health risks may have increased substantially.

Choose a policy with no sub-limits

When you opt for a health insurance plan, you should be sure that the plan has no disease specific or expenditure specific sub-limit. In few cases, you may find such plans to be expensive but they will help you to evade greater financial risks as well as provide you with the freedom to opt for efficient medical treatment, that too at the best health care provider. A policy with no sub-limits will help you avoid unpleasant situations at the time of claims.

Choose adequate sum insured

Consider all your personal priorities and liabilities, before you buy a health insurance policy to make an informed choice.Choose the policy that is in line to your by giving due consideration to factors like your age, age of all your family members, increased health care costs, etc.

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