Health Insurance Plans
What is a Health Insurance Plan?
Health insurance is a fast growing insurance sector in the Indian economy, with at least 25% of people having some form of health insurance coverage. The basic idea behind investing in a health insurance plan is to hedge against future financial stress in case of a medical emergency. Essentially, a person buys health insurance because they believe in planning for a future where they could be afflicted by disease or be in the need of hospitalization. In these cases, a health insurance policy kicks in to cover the medical expenses, treatment costs, patient care and other possible expenses. Your health insurance policy can cover just one person or a number of people in your family, and will give you maximum cover up to the sum assured for all the terms that were in the insurance contract.
What are the benefits of buying a Health Insurance Plan?
Health insurance policies offer a wide range of benefits under the terms of the contract.
1. No – Claims Bonus:
Most insurers give the policyholder a no-claims bonus in the form of premium reductions. This done when the policyholder has not made any claims against the policy for 2-3 years.
2. Cashless treatment:
Insurers have agreements with many hospitals in their network which makes the treatment and reimbursement process very smooth. The entire process is done through the insurance ID and no cash transactions and reimbursements are needed.
3. Medical Check-ups:
Many policies offer free medical check-ups at regular intervals so you can keep track of your health and welfare, and the health and welfare of your family.
4. Tax Exemptions:
For an number of Health Insurance plans, the premiums invested in the plan can be claimed for tax exemption under section 80D of the IT code.
5. Lifetime renewability:
Most Insurance policies these days carry a lifelong renewability clause, which means that you and your family continue to enjoy the benefits of the health insurance throughout your life. You do not need to worry about policy expiration.
Many insurers offer the option to port from one insurer to another. However, in many cases there may be penalties or hidden charges involved, so be careful to select the policy that is most beneficial for you.
What are the different types of Health Insurance Plans?
There are the following types of Health Insurance Plans that you can opt for, based on your needs and requirements.
1. Individual Health Insurance:
These policies only cover the expenses for the policyholder. The benefits include cashless transactions, pre and post hospitalization expenses, portability, renewability and other benefits of a standard policy. The premium amount is calculated based on the age of the insured.
2. Family Floater Health Insurance:
This is an extension of the individual health policy and carries all the benefits of an individual health plan. Under a family floater plan, the members covered under the policy are entitled to claim the benefits of the policy as many times as needed up to the maximum sum assured.
3. Critical Illness Plans:
These policies are specifically designed to cover illnesses or diseases that are life threatening and carry very high treatment or operating costs. The premiums for these policies are quite high and the insurer usually gives a lump sum amount as part of the coverage.
4. Senior Citizen Plans:
These plans are designed specifically to cover senior citizens, usually defined as individuals over 60 or 65 years of age. They cater to the special needs of seniors under different options.
5. Maternity Insurance:
These policies can be availed separately or as add-ons to family or individual health policies. They are targeted to young couples and provide benefits such as pre and post-natal care, delivery costs and also cover the newborn till the term of the policy.
6. Personal Accident Cover:
These plans cover the riders which are usually attached to regular health insurance for accident coverage. They cover all types of accidents and their ambulance charges, hospitalization and treatment costs.
Why choose a Health Insurance Plan?
Health Insurance plans offer a wide range of benefits and cover against all types of future risks. These are essential to ensure that you or your family are relieved of financial stress in a critical situation such as a medical emergency. Family floater plans help you protect a number of family members for about the same premiums as an individual policy. Other policies offer the chance to protect yourself against other specific issues or diseases. Planning for your future makes it essential to plan for a life where your health costs are taken care of.
How to choose a Health Insurance Plan?
Consider the following factors while choosing a health insurance plan :
1. Assess your needs:
Understand your future and assess any needs that may arise. If you’re planning to start a family, more dependents are there for you to take care of. If you plan to support your parents and if there is a future possibility of an increase in medical expenses.
2. Co-payment options:
A co-payment clause is a great way to reduce your premium costs. In an 80-20 clause, you will pay 20% of the costs while the insurer will pay 80%.
3. Claims settlement ratio:
Research the insurers available online to see how many claims they have settled versus the claims they received. This will give a fair indication of the reputation of the company and the probability of your claim being honoured.
When is the right time to buy a Health Insurance Plan?
It may seem like a strange paradox, but health insurance is best bought early on in life when you’re hale and hearty. The earlier you buy a health insurance plan, the more benefits you get out of it later on in terms of no-claims bonus, premium discounts and policy upgrades. Further, there is another practical reason as well. Most insurance policies have riders against certain types of diseases or a waiting period before the policy will cover a pre-existing diseases. If you buy health insurance early on, you can waive all of these riders and make sure that your health insurance policy works for you. Buying health insurance is also a factor of age, which can raise your premiums quite a bit if you’re buying insurance late in life.
For a genuine and transparent advice on your Health Insurance Plans, call our advisors on 9948 661 204 and get a Free Consultation for the first time. Alternatively, submit our enquiry form and one of our Financial Advisors will get back to you at your convenience.
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