Health Insurance India
Everybody wants to lead a healthy life. However with the changing lifestyle health problems have become very common. So one needs to protect oneself from any such risk that may arise in life. Moreover with the improvement in healthcare and the rising inflation the cost of health care has also increased. So having a health insurance policy has become essential. So what is health insurance and why health insurance is necessary to us? Health insurance policy or mediclaim policy or medical insurance policy is a contract between the insured and the insurer to provide to cover any expenses arising out of any health related issues against the payment of fixed installments by the insured called premiums. There are many health insurance policies in India and before buying a policy one should compare health insurance policies and then go for the one that would suit ones needs. The lower price of the premium should not be the only criteria.
Kinds of health insurance plans:
Covers the hospitalization expenses during the entire policy period. Some policies may also include expenses incurred before and after hospitalization. Individual mediclaim policy and family floater policy come under this kind of policy.
Individual mediclaim Policy:
Simplest type of policy that provides hospitalization cover. The expense covered under this policy depends on the sum assured.
Family Floater Policy:
Instead of having individual mediclaim policies the member of the same family can opt for a family floater policy that would cover the expenses of the entire family. The limit depends on the sum assured and it is generally less costly than individual mediclaim policy as one needs not buy a separate policy for each individual family member.
Hospital Daily Cash Benefit:
As the name suggests the policy provides the insured a fixed daily sum insured for each day spent in the hospital. The insurer may provide higher coverage for ICU admissions or any other such critical condition.
Critical Illness policy:
This type of policy covers certain specific illness prescribed in the policy and provides a fixed lump sum amount on diagnosis of any such diseases.
Benefits of Health Insurance policy:
- Daily Allowance: Some policies also cover expenses incurred daily for eg. Expenses incurred while commuting, food or refreshments etc.
- Cashless facility: Insurance companies have associations with different hospitals and if an individual undergoes treatment in any of these hospitals he/she can avail cashless facility.
- Health checks facility: Under this facility the expenses for a general health checkup are also borne by the insurer.
- Cost of medicines and other expenses: Some policies also bear the expenses incurred on medicines, diagnostic materials, surgical appliances, radiotherapy etc.
- Pre-hospitalization and Post-hospitalization expenses: Insurance policies also cover pre-hospitalization and post-hospitalization expenses like doctor's consultation fees, expenses incurred on tests etc. However, the health insurance companies cover these expenses generally up to a certain period of time before or after hospitalization.
- Miscellaneous expenses: Some premium policies also cover miscellaneous expenses like expenses incurred in dental treatment, domiciliary treatment if being recommended by a doctor, expenses incurred on hearing aids, spectacles etc.
- Tax Benefit: The premium paid towards health insurance is also eligible for tax benefit under section 80 D of the Income Tax Act. Factors affecting the premium cost- The premium paid towards the insurance policy depends on various factors like age and prior medical history. The older the individual the higher will be the premium. Moreover past claim history also affects the premium rates.