Health Insurance
What Is Health Insurance?
Health insurance plan is a product offered by insurance companies that covers all costs related to medical expenses of the insured. This can be bought for an individual or for an entire family. The term of the plan is ideally fixed at one year and in some cases one can buy the plan for a term of two to three years as well. With health insurance plan in place, one gets entitled to adequate medical help in case of an emergency or in a pre-planned medical expense, without worrying about the financial costs.
Here is how it works:
1. Health plan takes care of entire hospitalisation expenses subject to maximum sum insured and terms of the policy. All plans also cover pre and post hospitalisation expenses.
2. There is a cashless facility available under which you can avail the best medical care at any of the network hospitals & all the payment related to your treatment will be settled from the insurance company directly. This way the insured can immediately get treatment without having to wait for arranging the funds.
Basic Health Plan
This provides for the hospitalization expenses you might face in case of accidents, day-care procedures, surgical treatments or critical illnesses. However, the features, limits and sum assured will vary from insurer to insurer.
Super Top-up Health plan
Similar to top-ups for mobile network services, this adds supplementary coverage to your existing health plan. The aim is to increase overall sum assured with its corresponding coverage by paying a relatively lower premium.
Benefits of Health Insurance Plans!
A health insurance plan is an important part of your financial planning which should be in place for safe, secure and healthy life.
Health Plans come with a superfluous host of benefits that cover all your medical needs as well as contingencies:
Here are all benefits (inclusions) you can get from your health insurance plan:
1. Cashless hospitalisation in network hospitals of your insurance provider. Pre and post hospitalisation expenses are also covered.
2. Critical illness cover if you are diagnosed with life threatening diseases like cancer, tumour or kidney failure etc. In such cases the insurance company pays a lump-sum amount at the time of diagnosis, to start the treatment at the earliest.
3. Pre-existing diseases cover if you are already suffering from a severe ailment, at the time of buying the plan. The treatment expenses are compensated by insurance provider.
Apart from the above, the other expenses that can be covered under your health plan, based on type of plan and additional riders, are:
1. Critical illness
2. Personal accident
3. Hospital daily cash
There are some expenses that are never covered in your health insurance plans:
1. Cosmetic Surgeries are not reimbursed.
2. Orthodontic Surgeries (Teeth Beautifying) are not reimbursed
3. HIV/AIDS, STDs, infertility, hormonal replacement therapy, weight management services, treatment of congenital anomaly etc.
4. Non consumable listed by the insurance companies are not covered
FAQS on Health Insurance
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Can I save tax with health insurance?
Yes, Health Insurance can help you reduce your taxable income up to Rs. 1 lakh. Tax saving can happen under Section 80D of the Income Tax Act, 1961. As a Policyholder, a deduction of up to Rs. 25,000 per annum can be availed with regards to the premium paid for a health plan. The policy offers a coverage that can be availed by you, your spouse, and dependent children. However, the limit increases up to Rs. 30,000 if you or spouse is 60 years and above. You can also back this by an additional coverage of Rs. 5,000 for hospital related expenses of the family members such as parents, spouse, and dependent children.
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Which health insurance plans are available for women?
Women of all walks of life are now progressing and trying to maintain the fine balance between their personal and professional commitments. Hence, it is important that their medical needs are catered to. Various health insurance providers have now come up with unique health insurance plans that specifically cater to female medical conditions such as breast cancer, ovarian cancer, cervical cancer, complications during pregnancy, childbirth or other forms of critical illnesses. Some of the top companies that provide these kinds of health insurance plans are TATA AIG, Bajaj Allianz, etc.
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Which plans cover parents in health insurance?
Family floater health insurance plans usually cover parents in India. There are specific plans designed by various health insurance providers that cater to medical needs of parents of 55-60+ years of age. Some of the top providers of such unique plans include Star Health Insurance, Bajaj Allianz, Apollo Munich, Max Bupa health insurance etc.
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What if I forgot to pay my health insurance premiums?
In case you forget to pay your health insurance premiums, the provider gives you a grace period that usually varies from one to three months. However, if you fail to pay the premiums during this time as well, your insurance policy lapses and you are no longer entitled to the health insurance benefits of the policy.
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Is a medical check-up available in health insurance?
Yes, there is a medical checkup available while applying for health insurance as the insurance provider needs to assess the current health condition of the applicant before they invest in a policy.
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How to save money on health insurance?
To save money on health insurance, one must compare and select the health insurance plan that does not burn a hole in your pocket. Also, invest in policy directly through an insurance provider, to reduce the cost of an agent involved. Moreover, according to government schemes, one must inquire if they are eligible for any schemes.
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What is the deductible for health insurance?
This is the amount one pays for health care service before his/her health insurance gets applicable. For instance, when your plan's deductible is INR 75,000, you pay 100 percent of eligible health care expense, until the bill becomes INR 75,000. Post this, you get cost by paying co-insurance.
