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What is Health Insurance?
The health insurance policy is a type of financial instrument that offers financial protection in the event of medical bills. Health insurance policies are an agreement between the insurance provider and the person who is insured. The insured pays a monthly premium to the insurer, and the insurer provides the financial security against medical expenses for the person in exchange.
Health insurance covers all kinds of medical expenses, including the cost of medicine and surgeries, doctor’s appointments, room rental ambulance costs and much more.
Types of Health Insurance
There are two forms of insurance coverage:
1. Mediclaim Plans
Mediclaim also known as hospitalisation insurance plans is the simplest types of health insurance plans. They pay for treatments when the patient is admitted into a hospital. The reimbursement is based from the actual costs incurred in the hospital, by submitting the original bill. A majority of these plans will cover the entire family within a certain amount.
2. Critical Illness Insurance Plans
Critical Illness Insurance Plans cover specific life-threatening illnesses. The diseases may require long-term treatment or even an adjustment in the way of life. In contrast to hospitalisation plans, the payments are made on the Critical Illness coverage selected by the client instead of the actual expenses paid to the hospital. The insurance policy gives you the freedom to make use of the funds to alter lifestyles or medications. It also serves as a replacement to earn income during the time you are unable to resume work because of illness. The payouts for these plans are based on being diagnosed with the illness and the medical bills are not needed.
3. Family Health Insurance Plan
Family health insurance policy can cover multiple members of that same household, for example the person who is insured, and parents, spouses, and children, as well as father-in-law and mother-in-law. These policies provide coverage for the entire family with the same health insurance premium which is perfect for families that want an easier and more structured method of health insurance.
4. Senior Citizens Health Insurance Plan
Health insurance for senior citizens gives financial protection against medical expenses that are incurred by elderly people. The health insurance policy is tailored to the requirements of seniors and guarantees that their medical requirements are fully met, without financial limitations. Health insurance plans for seniors provide coverage for health issues related to age such as pre-existing conditions, and also other medical treatments that result from an accident or illness.
5. Personal Accident Insurance Plans
The personal accident insurance policies provide insurance against medical complications that result from an accident. They cover costs such as surgery costs, ambulance charges as well as post-operative rehabilitation costs as well as other costs.
6. Individual Health Insurance Plan
A personal health insurance plan is for a single person. It operates like any other health plan, and provides insurance for medical expenses such as surgery, doctor’s appointments medications, ambulance charges rooms rents and other.
Benefits of Health Insurance
Below are a few benefits that health insurance policies offer:
Critical Illness Cover
Beyond the standard healthcare costs Health insurance also covers serious diseases, like cancer, health issues kidney issues and much other conditions. These conditions may require medical treatment for a long time and impose heavy expenses. Health insurance is a good option to pay for these costs to allow you to focus on the treatment and recuperation.
Coverage for Pre-existing Illnesses
A health insurance policy will not only cover any health problems that you might face, but there are pre-existing diseases. At the time you purchase the plan, you might be suffering from pre-existing conditions, like diabetes, thyroid high blood pressure, thyroid or other conditions. Health insurance covers the cost of these ailments with a very short waiting time and provide the best financial protection for you.
Quality Healthcare
Health insurance allows you to access health care from a variety of healthcare facilities and hospitals associated with the insurance company. This guarantees timely and high-quality medical treatment when you require it most.
Cashless Claims
Health insurance is a useful tool to ensure your wellbeing when you need it most. It allows you to make cashless claims and not have to go through long claim process. In the insurance industry, they settle costs for you with the hospital on behalf. This process is streamlined so that you don’t have to pay in advance and request reimbursement in the future.
Cashless Treatments
A health insurance policy allows you to benefit from the necessary medical care at a hospital in the network without having to make any upfront payment. It allows you to receive the care you require and the insurance provider directly pays the bill to the hospitals in the network, providing the convenience of speed and efficiency.
Tax Savings
If you purchase the health insurance plan, then you may take a deduction up to Rs 25,000 in Section 80D for you along with your loved ones (Rs 50,000 if age of the insured is 60 years old or more) or up to 25000 (Rs 50k if the insured’s age is 60 years old or over) to your parents.
Why do you require Health Insurance now?
Everyone does not want to get sick or be injured However, serious illnesses could occur at any time. The expense for treating the disease may result in a significant financial burden on the savings you’ve built up over time. This means that you could need to sacrifice giving your child the highest quality education, or even default on the mortgage payments. The price of medical treatments is always increasing.
For e.g. Herceptin, an anti-cancer medicine is priced at around 110,000 per vial of 444 mg. Based on the weight of the patient, it is typical that a patient needs 17-19 bottles to treat over the course of a year. It’s about 18-20 million just for the medication. Add in hospitalisation costs and doctor consultation fees chemotherapy expenses and so on. The total cost could over 25 lakh. These expenses, which are already extremely expensive are rising each year. Many sensible people have taken essential steps to protect that their medical condition as quickly as they can. The health insurance policy is live benefit that allows you to require money in times in dire need.
One illness could wipe from your savings all the money that you’ve made for the education of your kids, wedding, purchasing a house, or even retirement. It is not a good idea to let the dreams of your family members to be broken because of an illness, particularly in the event that you could have safeguarded yourself financially. It is beneficial to purchase an insurance policy for health in your early years and well. As you age you will not only see the cost of insurance rise however, you also have the in danger of being denied health insurance plan from the insurer.
How to Choose the Right Kind of Health Insurance For Yourself?
There are a variety of health insurance options available in India. Indian market, which can make it challenging to select the right policy that meets your needs in terms of medical and financial. Here are some things to take into consideration to help you choose the best product for you:
Right Coverage
The coverage offered by a health insurance plan should be aligned with your medical needs. If you are suffering from pre-existing health issues or an unhealthy history within your family, you are recommended to purchase a more comprehensive insurance plan that will cover all medical expenses that you might incur.
Furthermore, your insurance must be sufficient to cope with the increasing medical expenses in the future.
Suits Your Budget
The greater the coverage the more coverage, the higher the cost of health insurance. So, you should analyze your needs and determine if the price is in line with your budget or not.
Individual Plans or Family Plans
Individual plans are for a single individual, while a family policy can cover multiple members of the family. It is possible to evaluate your requirements and the needs relatives’ needs to figure out if you require a different health insurance policy for each individual or a combined policy for everyone.
Lifetime Renewability
Lifetime renewal allows you to renew your policy when it reaches its expiration date and continue to enjoy financial security for a long duration. This option eliminates the necessity of purchasing a health insurance plan every couple of years. It is a good idea to purchase a plan that offers a lifetime renewal option.
Preferred Hospital Coverage
It is crucial to determine whether the health insurance plan you are considering includes the hospital you prefer within the network of their hospitals. This will enable you to get quick and efficient medical treatment at any time.
High Claim Settlement Ratio
The ratio of claim settlement represents the amount of claim an insurance company has settled within an elapsed time from the total amount of claims received. It is advised to look to a firm that has a high settlement ratio. This will ensure you that the claims will get resolved when you require it.
Should I purchase the Mediclaim program or Critical Illness Insurance plan?
A Mediclaim plan will pay the entire cost of hospitalization or pay for hospital expenses through a cashless service. If you have the Critical Illness Insurance plan, you’ll receive an amount in lump sum upon the diagnosis of a critical disease. It is not necessary to go to hospital to receive the same. If you’re unable to work due to the disease, then you could make use of the money to supplement your income per month.
You could also make use of the funds to pay costs for medical visits, medicines purchases medical tests, and any other expenses that may occur during this period. That’s why you require both the Mediclaim plan to pay for hospital expenses as well as an Critical Illness Insurance plan to ensure that you are covered for loss of income as well as other costs that are incurred from an illness.