Health Insurance
The health insurance policy is also popularly known as Mediclaim Policy covers cost of medical treatments.
It involves expenditure incurred on unforeseen diseases, accidents, Critical Illness, etc and covers services like Hospitalization, Day-care, Domiciliary treatment, operation charges, Ambulance charges, etc.
TYPE OF HEALTH INSURANCE POLICIES
Individual Plan
In this plan, an individual is covered. This plan is suited for unmarried individuals.
Family Floater Plan
In this plan, the entire family is covered. The family consists of husband, wife, and two children. Total sum assured will be available to the family collectively or individually.
Family Floater with Parents
In this plan, the parents of either of the spouse are also covered along with the family.
Health Insurance Benefits
Protection
It protects the medical expenses towards Hospitalization, Day-care, Domiciliary treatments, Surgical treatments, etc.
Cashless Treatment
Insurance Companies provide cashless treatments through their network hospitals. The claim is settled between hospital and insurance companies. Hospitals take pre-authorization of expenses from the insurance companies. Policyholders need not worry about the expenditure aspect.
Critical Illness
Insurance companies are also protecting against critical illness by charging an extra premium. They cover life-threatening diseases like Cancer, Kidney failure, Strokes, etc.
Disability
Insurance policies also cover the disability clause. A certain amount of sum assured is paid in case of total or partial disability.
Tax Benefits
Premium paid towards the health policy is eligible for Tax deductions under section 80D of Income Tax Act. In the case of an individual and his family, premium upto Rs.25,000 is allowed whereas in case of Senior Citizen, an amount of Rs.50,000 is allowed as deduction. A deduction of Rs.5,000 is also allowed towards preventive health check-up
Buying Decision Basics
Amount of coverage or sum assured is to be selected basing the income and need for the coverage for the self and family.
Step 2: Need
Health Insurance plan is needed to protect from the exorbitant medical expenses to be incurred on unforeseen diseases or accidents.
Step 3: Waiting Period
Minimum waiting period for pre-existing illness to be checked. It is also different in different companies. Normally it is 24-36 months.
Step 4: Renewal
Maximum age for renewal of the policy to be checked. It differs from company to company. Normally, renewal for life long is assured.
Step 5: Claim Settlement Ratio
Claim settlement ratio is to be verified. A higher claim settlement ratio indicates the intention of the company to settle the claims.
Step 6: Claim Settlement Ratio
Premium on the policy also differs from company to company. It is advisable to check the premium charged by the other insurance companies. This can be done by visiting their respective websites.
Step 7: Sub-Limits
Sub-limits of various expenses concerning Room Rent, Major or Minor Operation Charges , the cap on certain diseases like Hernia, Cataracts etc. Sub-Limits on all these expenses also different for each company.