In contemporary times, there is a lot of fuss in the electronic media concerning health insurance? Have you ever thought about what it is? Well, a little knowledge is always dangerous. So, first things first, you need to understand the concept of health insurance as a service. Simply put forward, it is a form of service, which safeguards you from paying huge bills in case of a medical contingency.
It decreases the odds of paying huge bills if you fall sick or have an accident. All you need is to deposit smaller amounts periodically, i.e., premiums in exchange for the insurance company’s promise to pay the cost of treatment in the event of something unexpected.
Importance of Health Insurance
With the passage of time, health and medical facilities are becoming more expensive. In this backdrop, it becomes imperative to have the support of a health insurance policy. The right kind of cover can make all the difference between life and death. Hence, health insurance can
- Offer protection from medical debt
- You can manage your health better
- You do not have to spend money on healthcare bills
- You can manage health cost rising due to medical inflation
- Provides you several treatment options
God forbids, but if you must spend a day or two in some of the reputed hospitals in India, it can cost you in lakhs. Health insurance can shoulder the majority of the expense or even the full-cost protecting you and your dear ones from unanticipated medical bills.
Categories of Health Insurance Plans
- Hospitalization or Indemnity plans that bear hospitalization and medical costs of the policyholder to the insured sum
- Family floater plans cover the entire family under a single health insurance plan
- Cover plans for pre-existing diseases before purchasing a health policy
- Health insurance policies for senior citizens or older people in the family
- Maternity health insurance provides cover for maternity and other related expenses
- Daily cash benefit plans that will pay the predefined amount for every day of hospitalization
- Critical illness plans that will shoulder all expenditure covering the treatment of a critical illness
- Top-ups / Super top-ups - These plans come handy when the threshold of existing cover is already used or exhausted.
- Pro-active plans that are meant to assist the policyholder based on chronic conditions, lifestyle, behavioral and medical factors.
- Disease-specific special plans.
- Dreaded disease / Critical illness policy – This policy provides the benefit only if one gets the specified disease or group of diseases named in the policy.
- Global Health Plan – This plan is available for Indian citizen travelling outside India for business or holidays or employment or studies. The plan covers the risk of accident and sickness benefits. These are the package products with a range of covers within one product.
The following expenses are covered in the basic health insurance policies:
- Expenses e.g. Individual or family health insurance policies will make you eligible to claim a cover in the event of hospitalization due to illness and bodily injuries sustained in an accident during the tenure of the policy period.
Expenses covered for inpatient treatment includes:
- Boarding expenses inclusive of patient’s diet
- Nursing care
- Expenses of medically qualified staff
- Covers cost of procedures that are medically required during treatment
- Medical consumables
- Pre-hospitalization Expenses e.g. examination, tests, medication etc. incurred by you before your hospitalization.
- Post-hospitalization Expenses incurred on follow-up visits, consultations, therapy, medication etc. after your hospitalization.
- Cashless facility or direct payment where the insurer directly pays to the hospital and the person does not need to pay at all
- The policyholder can opt for reimbursement from the insurer once his or her stay in the hospital is complete
At present insurance companies, provide micro insurance policies starting from INR 50,000 and its upper limit can reach to INR 50 lakhs whose tenure can vary from one year to lifetime coverage.
If choice for more than one plan is available, compare each plan on the following grounds:
- Room Rent / ICU Capping
- Pre-existing diseases