What is health insurance? Advantages of health insurance plans
Health insurance is a contract, For which an insurer gets some or all of the cost of healthcare from the insurance company in return for the premium. A health insurance policy accident,
Provides coverage against medical expenses due to illness or injury. An individual can take out such policy with monthly or annual premium for a fixed period. During this time, If an insurer is involved in an accident Or is facing serious illness, However, the expenses incurred for the treatment are borne by the insurance company providing the insurance. More specifically, health insurance usually covers medical, surgical, prescription drugs, And sometimes the cost of dental treatment is borne by the insurers.
How does health insurance work?
Let’s take a look at how health insurance actually works. As with any insurance policy, Health insurance also helps you deal with the financial impact of an accident or emergency. The process begins when you apply to buy a plan. Your age, medical background, necessary insurance And the kind of plan you choose, Depending on that you will be paid the premium price.
In some cases, you may be asked to undergo some medical examination before the insurer makes a decision. To determine that, Whether they want to give you the cover you need. Once the terms are finalized, You are provided with a policy.
Each policy comes with a few waiting times. The initial waiting period is only a few weeks or one month. During this time, you will not be able to make any non-urgent claims.
If you are able to get treatment at a network hospital, You can tell the insurance company about the cost, And the company will contact the hospital directly for all payments. When you are discharged from the hospital, Then you only have to pay extra costs, Which is not covered and the amount of voluntary co-pay, if any.
Types of health insurance:
1. Personal health insurance: A personal health insurance policy, as its name implies, covers a person’s medical expenses. This cover can be used for you, your parents including children and children. Under this plan, each family member will receive a separate insurance. For example; If the sum insured of your plan is Rs. Then each family member can use up to Rs 10 lakh for that policy period, That means if you are buying a separate plan for three members, Then the total for three people will be 30 rupees. Millions.
2. Family Floater Health Insurance: Under this type of plan, A single insurance is available for all persons under one policy. This entire money can be distributed for the treatment of one person, respectively. In that case no further claim is covered in case of any other medical emergency.
Senior Citizens are not eligible under the Family Floater Plan, Because their medical needs are more complex.
3. Senior Citizen Health Insurance: tailored to all medical expenses of the elderly Only people over the age of 60 can get such a plan. Most senior citizen policies provide additional cover, Such as admission to a residential hospital and even some psychological benefits.
4. Complicated Illness Insurance: There are a number of lifestyle related diseases that are on the rise. Long-term coping and management of health problems such as cancer, stroke, kidney failure and cardiac disease can be very costly. This is exactly why critical illness insurance policies have been created. These are either purchased as riders Or an add-on with your regular health insurance plan Or can be purchased separately as their own plan.
5. Group Health Insurance: In addition to personal and family plans, Group health insurance plans for a large number of people can be purchased by a group manager. For example, an employer may purchase group insurance for all their employees Or the building secretary can buy such plans for all the occupants of the building. These plans are fairly affordable, However, these often only provide cover for primary health issues. Employers often buy these plans as additional benefits for employees.
6. Top-up health insurance: Most of the time, the cost of treatment that you estimate when taking health insurance cover, It may increase over time even though your insurance remains unchanged. In this case, instead of buying a separate insurance plan, You can buy a top-up for your existing cover. This top-up plan helps increase overall insurance coverage, Which you can use in any emergency.
Health insurance benefits:
It is very important to buy health insurance for various reasons. Let’s take a look at the most important benefits of a health insurance policy:
1. Helps to avoid rising medical costs: People purchase health insurance policies to protect their finances against rising medical costs. An accident or medical emergency can cost you more than a few thousand rupees. Through a medical insurance plan, You enjoy the cover for everything from ambulance charges to day care, So that it becomes easier to get the care you need for your recovery.
2. Cashless Medicine: Insurance companies usually have contracts with hospitals, Which is known as network hospital which provides cashless treatment to the insured in case of hospitalization. These hospitals reimburse the costs associated with the treatment received by the insurers. This means that you can get treatment in these hospitals without paying anything, And the insurance company will refund you even after you have claimed.
3. No Claim Bonus: Insurance companies offer Notice Claim Bonus (NCB) to policyholders, Those who make any claims during the policy year. The No Claim Bonus applies to both personal health insurance plans as well as family health insurance plans.
4. Complex Illness Cover: Many health insurance policies will cover serious illness at extra cost. In view of the increasing prevalence of life-threatening diseases today, This is another important factor. If you are diagnosed with a covered serious illness, However you will be paid a single payment. These problems are often very expensive to deal with and manage, So protection against serious illness is another important benefit of having health insurance.
5. Tax Savings: Under Section 80D of the Income Tax Act, 1961, Premiums paid for maintenance of health insurance policies are eligible for tax deduction. Your wife, your children And for a policy for parents under 60, Every year from your taxable income, You can claim a discount of up to INR 2500.