What Is Health Insurance?
Health Insurance is medical coverage that helps you meet your medical expenses by offering financial assistance. Due to the high cost of hospitalization expenses, it is important to have a health insurance plan in place.
You can buy a health insurance plan for yourself and your family to avail the benefits & coverage. It helps you boost tax savings. Under section 80D of the Income Tax Act, 1961, you can claim tax benefits against your health insurance premium.
Why do you need a health insurance plan?
Changing lifestyles of Indians: Age has nothing to do with serious ailments, particularly due to sedentary lifestyles and lack of physical exercise. The younger you are when you buy a health insurance plan, the better the deals and the higher the discounts on the premiums.
Skyrocketing Medical Care Costs: Good quality medical treatment comes with a high price tag. Medical problems eat into a huge amount of savings accumulated towards important long-term financial objectives.
Preventive Care: The latest research shows that people with health insurance are found to be mentally and physically healthier.
Your Reach: Expensive healthcare procedures and medicines may be beyond your reach without the security of health insurance.
What are the different types of health insurance policies?
- Individual
- Family Floater
- Senior Citizen
- Corporate Policy
Terminologies to Know in a Health Insurance Policy
Sum Insured: The amount you can expect to receive from the insurer for hospitalization expenses. If bills are more than the sum assured, then you need to bear the amount above the sum assured on your own.
Co-payment: Co-Payment is a certain percentage of the insured's claim that the insured agrees to pay along with the insurance company. The insurer then pays the remaining claim amount.
Sub-Limits: Within the policy, you will find some sub-limits, i.e., the maximum you can get even if you aren't exhausting your overall coverage. Room rent is one component that carries its sub-limit, beyond which the insurer won't reimburse you.
Things to Consider Before Buying Health Insurance
- Check that you will be getting enough coverage for you and your family.
- Read out all the Terms and Conditions associated with the Health Policy and take an Informed Decision.
- Always check how efficient the company is in settling the claims.
- Always choose the company that has the highest hospital network.
- Check how active the company is in solving your queries.
