Have you heard the sayings "Better safe than sorry" and “Prevention is better than cure"? These sayings hold timeless wisdom that applies to your health too. Unexpected medical emergencies can happen anytime. They can sometimes result in high medical bills. This is where
health insurance comes in.
Having health insurance is similar to wearing a helmet while riding a two-wheeler or buckling up before starting your car engine. How? Because a reliable health insurance plan is like having an extra level of protection against medical uncertainties.
Now, let's invest a few minutes to understand what is health insurance or medical insurance. Don't worry. There won't be any heavy jargon or complicated theories in this blog – we will explain how you can protect yourself (and your wallet) from unexpected medical bills in simple words. So, let's begin.
What is Medical Insurance?
Health Insurance, also known as medical insurance, is a contract between an individual (you) and an insurance company. Under this contract, the insurer agrees to cover all or some portion of the medical expenses incurred by you in exchange for a regular premium. These medical expenses usually include hospitalisation, medicine costs, doctor consultation fees, surgical procedures and much more as per the health insurance policy's terms and conditions.
Now that you've understood the meaning of health insurance, it is also important to know about the different types of health insurance plans available in the market.
What are the Different Types of Health Insurance?
Just knowing the definition of health insurance is not enough. You also need to that there are many types of health insurance plans in India. You can think of health insurance as a restaurant menu with multiple dishes, with each plan offering something different. Here's a brief overview of the different types of health insurance policies available in the market to help you pick the one that suits your needs the best.
Individual Plans
This type of health insurance plan offers coverage to an individual (a single person) against unforeseen medical expenses, including pre-and-post hospitalisation expenses, health check-ups, doctor fees and more. The premium for individual health insurance plans is based on multiple factors such as the insured's age and health condition.
Family Floater Plans
This health insurance plan covers your family members (spouse and children) under a single policy. You can also include your parents and in-laws (father-in-law and mother-in-law) under a family floater plan. The coverage is provided for various medical expenses, including hospitalisation bills, surgical expenses, doctor consultation fees and more.
Senior Citizen Plans
This policy provides financial coverage to people aged 60 years and above. The premium for a
senior citizen health insurance can be comparatively higher than other health insurance plans because of the high risk associated with older citizens. This plan covers a range of medical expenditures, including surgery bills, doctor fees and hospitalisation costs.
Critical Illness Plans
This plan provides insurance coverage for listed critical illnesses, including heart attack, coma and kidney failure. A
critical illness insurance policy offers a lump sum amount to help cover treatment costs, lost income and other medical-related expenses. It is advisable for people with a family history of critical illnesses to have this plan.
Top-Up Plans
This plan can be used to protect you during medical emergencies after you've exhausted the sum insured on your primary health insurance plan. In simple terms, you can think of
super top-up plans as a financial back-up that comes into effect when your medical bills exceed the coverage offered by your basic health insurance plan.
How Does Health Insurance Work?
Now that we know there are multiple types of health insurance plans available in the market, it's time to understand how exactly health insurance works. Health insurance works on the principle of risk pooling. Basically, the insurer pools premiums from a large number of people who want to protect themselves against a range of common risks (in this case, medical uncertainties).
Let's understand this with an example: Imagine you and your friends decide to put some money into a safety fund every month. This money can be used whenever someone from your group is in need. Simply put, everyone contributes a little to help anyone who needs it. Health insurance works the same way - here, the insurance company plays the role of the safety fund.
The insurer collects premiums from different people (the insureds) on a regular basis, i.e., monthly, quarterly or annually. The insurance company, then, uses the accumulated amount or the pooled money to help the insureds pay for hospitalisation, doctor consultations, surgeries and more as per their health insurance policy's terms and conditions.
What are the Benefits of Health Insurance?
Having health insurance is like having a guardian angel – always there to help you during difficult times. It's like having a strong safety net to protect you against sudden medical emergencies. The best thing about health insurance is that it's never too late to invest in it – it is beneficial for people of all ages. How? Let's look at some of the top benefits of health insurance:
Financial Protection
Medical costs are rising. Any unexpected healthcare expenses can burn a huge hole in your pocket. Health insurance can help you deal with these expenses without depleting your savings, protecting you in your time of need.
Access to Quality Care
Health insurance enables you to get access to timely, quality care without worrying about healthcare affordability. With coverages for hospitalisation, doctor fees, diagnostic tests and more, you have to focus only on getting better.
Hassle-free Claim Settlement
Insurers collaborate with many hospitals to offer their members the benefit of 'cashless claims'. This enables you to enjoy hassle-free claim settlements as the insurer directly settles the bill with the network hospital.
Tax Savings
You can claim tax deductions of up to ₹1 lakh on your medical insurance premiums as per Section 80D of the Income Tax Act, 1961. Please note that these deductions are based on the insured's age.
How to Select a Great Health Insurance Plan?
Choosing the right health insurance for you and/or your loved ones is more strenuous than it seems. This task becomes more difficult when you look at the number of plans available in the market. However, you can easily navigate through these difficulties if you thoroughly evaluate your needs and circumstances. You should also consider the following points to help you select a great health insurance plan:
Coverage
You need to think about different medical services you might need in the future. It can range from coverages for hospitalisation, doctor fees, surgical procedures and more. Select the plan that ticks all the coverage requirement criteria.
Sum Insured
Sum insured is the maximum amount the insurance company agrees to pay for your medical costs. You need to consider the medical history and potential treatment costs of yourself and your family members while selecting the sum insured.
Network Hospitals
Always remember to select an insurer having a large number of network hospitals. Why? Because you can avail the benefit of 'cashless claims' if you get treated at a network hospital. This allows you to focus on getting well soon.
Add-ons
You can check different add-ons available with different policies. Health insurance add-ons usually come in the form of extra coverage or benefits. Note that your final premium amount will increase with every add-on opted.
Insurer's Reputation
Choose an insurance company with a high claim settlement ratio as they have a proven record of providing great services. You should also check the insurer's customer reviews to figure out if they offer a smooth claim settlement process.
Why Do You Need Health Insurance Now?
Are you still wondering whether you need health insurance or not? The answer to this question is simple - Life is full of uncertainties; medical emergencies can arise anytime and health insurance can help you deal with them effortlessly. Let's find out why having health insurance has become a necessity in today's world:
Rising Healthcare Costs
Medical or healthcare costs are increasing at an alarming rate. A simple surgery or hospitalisation can sometimes lead to huge financial stress. Health insurance helps to mitigate some or all of this financial burden through its comprehensive coverage.
Changing Lifestyles
Today's fast-paced lifestyle has taken a toll on everyone's physical and mental well-being. Factors ranging from junk food and uneven daily routine to lack of exercise and stress play a vital role in shaping our health trajectory.
Financial Well-being
Unforeseen medical conditions and subsequent medical expenses can put a significant dent in your savings. You can protect yourself during such situations through your health insurance coverage, safeguarding your bank balance.
Access to Quality Treatment
Health insurance helps to overcome the financial barriers to accessing quality healthcare, enabling you to get the timely and necessary treatment without worrying about medical expenses.
Peace of Mind
You should never forget the idiom 'health is wealth'. With the right health insurance policy, you can protect yourself and your family members against sudden medical emergencies without worrying about the cost of healthcare.
Conclusion
To summarise, health insurance acts as a secure pathway to avail quality and timely medical care without worrying about immediate payments. It not only offers coverage for a variety of medical services but also offers a wide choice of network hospitals to promote better health outcomes. So, what are you waiting for? Buy health insurance today and start your journey towards a healthier and happier life.
