Medical emergencies arise without warning. Today, the cost of medical services is rising. Hospitalization can bury a hole in your pocket. With the gush of environmental and lifestyle changes, diseases are becoming common among the masses. Since health is wealth, health insurance is detrimental to equip you financially in times of hardships.
What is Health Insurance?
Health insurance is an agreement between yourself and the insurance company wherein the insurance company undertakes the medical expenses incurred due to injuries, accidents, or chronic illness. A health insurance plan is substantial financial support in times of unforeseen austerities. Insurance providers are aware that no one size fits all; thus, they have plenty of insurance plans suiting your and your family’s requirements.
Types of Health Insurance policies available in our country are as follows:
- Individual Health Insurance: This health insurance policy covers the treatment cost of a single person. Under this plan, every family member gets a different sum of insurance. It implies that one or more family members require medical services simultaneously; this health insurance policy will be sufficient to cover them all due to the separate sum insured to each member.
- Family Floater Health Insurance: A single sum insured is available for all members under one policy in this insurance. This entire amount can be disbursed for treatment of one person, respectively, and no additional claims are supported at the time of another medical emergency. This type of insurance is not meant for Senior citizens as their medical needs are complicated.
- Senior Citizen Health Insurance: Such plans can only be obtained by people above the age of 60 years. The insurance is tailor-made to suit specific needs. There is also an extension of comprehensive coverage based on different types of illnesses.
- Group Health Insurance: These plans are provided to employees by their companies. The employer pays the premium amount and has provisions to refill the sum insured. These policies are relatively cost-effective and are handed out as employee retention tactics. This cover remains till you are a part of the company. This type of insurance is not tailor-made to suit specific needs.
- Maternity Insurance: Expenses of pre and post-natal procedures incurred during pregnancy are covered under maternity insurance cover. Medical bills of a newborn are included for the first three months. These policies have a waiting period of about two years.
- Critical Illness: A critical illness insurance policy provides coverage against such specific conditions, providing financial protection for treatment and recovery of a patient since life-threatening diseases have extravagant medical expenses. However, this cover can only be availed if the insured person remains alive for 30 days post-diagnosis. These come with a 25% extra ensured sum.
- Top-Up Health Insurance: The top-up policy helps to increase the overall sum insured, which you can use in case of any emergency even if your existing policy gets exhausted. This also provides an option to enhance your policy coverage while renewing your insurance. You can still buy this plan even if you don’t have a basic medical policy.
Nevertheless, a health insurance policy with a sum insured amount equal to the deductibles is highly recommended. A careful customer would choose the best possible option considering the protection of his family and finding a way to escape the headache of paying hefty hospital bills.
Advantages of having Health insurance:
- Cashless treatment and reimbursement: In the first case, customers can directly go to the hospital and get admitted after showing the health insurance card. Hospitals provide cashless treatment and later claim the expenses from the insurance companies. In the latter, the customer has to pay the medical bills from his pocket and then further claim for reimbursement from the insurance company. This is usually the scenario when hospitals do not have tie-ups with medical insurance companies.
- Ease of admission in hospitals: Hospitals only charge a token amount before admitting, and the rest of the treatment is carried out. The expenses are cleared at the time of discharge.
- Pre and post-hospitalization cost coverage is ensured up to 60 days.
- Transportations charges of the ambulance are ensured.
- No Claim Bonus is added if a person doesn’t avail ensured sum in the previous year.
- Room rent is covered depending on the premium.
- Free periodic health checkups after every 4-5 claim-free years.
- Fixed premium cost: Health insurance plans offer fixed premiums with fixed benefits. The premium amount in some unique plans remains the same for the entire duration of the policy. This implies that your budget is not put under any strain due to increasing health insurance costs. Many health insurance plans also offer a discount on the first-year premium if you and your partner are covered.
- Income Tax exemption: According to Section 80-D of the Income Tax Act, the premium paid on health insurance is tax-deductible. This deduction amount varies from family to family, depending on age in case of an individual Rs. 25,000 for him and his family and a member being above 60 years, the deduction is Rs.50,000.
- The most significant plus point of health insurance is financial protection as it prevents sudden erosion of money. The premium paid would not be more than 5% of your annual income but indeed prevents you from spending all your yearly income in case of hospitalization.
Therefore, Health Insurance is a prime feature in which one must consider investing in long-term use. Several benefits of health insurance remain unknown due to the lack of knowledge of policyholders. The government has a plethora of health insurance schemes to help people with the process. Indulge in health insurance early to stay secured because protecting yourself and your loved ones along with saving yourself from being financially handicapped is vital. In this fast-paced, ever-growing world, health insurance is thus an essential requirement