Health Insurance : Your Health, Your Choice

 

Health Insurance refers to a type of General Insurance, which provides the financial assistance to the policyholders when they are admitted to hospitals for treatment. Additionally, some plans also cover the cost of treatment undertaken at home, prior to a hospitalization or after discharge from the same.

Health insurance or Medical insurance is a type of Insurance that covers the whole or a part of the risk of a person incurring the Medical expenses. According to the Health Insurance Association of America, Health Insurance is defined as "A coverage that provides for the payments of benefits as a result of sickness or injury. It includes Insurance for losses from the accident, medical expense, disability, or accidental death.

With the rising medical inflation in India, buying Health Insurance has become a necessity.

Types of Health Insurance policies :

There are Eight main types of Health Insurance :

 Individual Health Insurance - These are healthcare plans that offer medical cover to just one policyholder.

 Family Floater Insurance - These policies allow you to avail health insurance for your entire family without needing to buy separate plans for each member. Generally, husband, wife and two of their children are allowed health cover under one such Family Floater Policy.

Critical Illness Cover - These are specialized health plans that provide extensive financial assistance when the policyholder is diagnosed with specific or chronic illnesses. These plans provide a lump-sum payout after such a diagnosis, unlike typical health insurance policies.

Senior Citizen Health Insurance - As the name suggests, these policies specifically cater to individuals aged 60 years and beyond.

Group Health Insurance - Such policies are generally offered to employees of an Organization or Company. They are designed in such a way that older beneficiaries can be removed, and fresh beneficiaries can be added, as per the company’s employee retention capability.

Maternity Health Insurance - These policies cover medical expenses during pre-natal, post-natal and delivery stages. It covers both the mother as well as her newborn.

Personal Accidental Insurance - These medical insurance policies only cover financial liability from injuries, disability or death arising due to accidents.

Preventive Healthcare Plans - Such policies cover the cost of treatment concerned with preventing a severe disease or condition.

Benefits of Health Insurance :

·         Medical Cover - The primary benefit of such Insurance is that it offers financial coverage against the medical expenditure.

·         Cashless Claim - If you seek treatment at one of the hospitals that have tie-ups with your Insurance provider, you can avail cashless claim benefit. This feature ensures that all medical bills are directly settled between your insurer and the hospital.

·         Tax Benefits - Those who pay Health Insurance premiums can enjoy Income Tax benefits. Under Section 80D of the Income Tax Act one can avail a tax benefit of up to Rs.1 Lakh on the premium payment of their Health Insurance policies.