Health Insurance

The cost of an insured person's medical and surgical bills are paid for by their health insurance policy. Either the insured person pays the costs out of pocket and is then repaid or the insurance company pays the costs directly and then reimburses the insured person. This is subject to the terms of the insurance coverage.

what does it mean to have health insurance?

An individual can protect themselves financially against the costs of medical care and surgical procedures by purchasing health insurance. It either makes direct payments to the care provider of the insured individual or reimburses the individual for the expenses incurred as a result of an illness or injury.

different categories of health insurance

Every person is one of a kind and has their own particular requirements to fulfill. It is impossible for a single health insurance policy to adequately meet the requirements of every single person's unique situation. Specifically in this area, there is a wide range of options to choose from when it comes to health insurance policies. Let's have a look at what each one of these things is:

1. private health insurance for each person

You have the option of purchasing a health insurance coverage on an individual basis to cover not only yourself but also your spouse, children, and even your parents. These insurance often cover any and all types of medical bills, such as hospitalization, childcare operations, hospital room rent, as well as other types of medical costs. Each participant of an individual health insurance plan has their own sum covered amount. This is the case with individual plans. Let's say you've decided to protect yourself, your spouse, and both of your parents by purchasing an individual plan with a sum insured of 8 lakhs Indian rupees (INR). You will each have the ability to submit a claim for up to 8 lakhs every policy year for the maximum amount covered by your health insurance.

2. health insurance that covers the entire family

With a family floater plan, you can insure everyone in your household under a single plan, and the total sum covered will be split among all of the policyholders. Because the total amount insured is split across multiple participants in a group plan, the premiums for these policies are often lower than those for individual plans. Let's imagine you and your spouse decide to invest in a family floater plan that has an amount insured of eight lakhs of Indian rupees (INR). You are only allowed to make claims for up to 8 lakhs of Indian rupees in a single policy year. Your claims could be worth 2 lakhs of Indian rupees, but your spouse's claims could be worth 6 lakhs of Indian rupees, or vice versa. In most cases, family floater plans are the best option for small nuclear families in their early 20s.

3. health insurance for retired and senior citizens

These health plans have been developed with elderly adults' particular medical requirements and needs in mind from the very beginning of the design process. Domiciliary hospitalization and even some psychiatric benefits are included in most senior citizens' supplementary coverage options, which may be found in most policies. Because those who are older are more prone to have health problems, these policies may demand that their prospective customers undergo a comprehensive medical examination first and may be more expensive than standard insurance policies.

4. critical illness insurance

Many diseases that are linked to people's choices in how they live their lives are on the rise. Problems with one's health that require long-term treatment and management, such as cancer, stroke, kidney failure, and cardiovascular illnesses, can be exceedingly costly. The development of critical illness insurance was spurred directly by this need in the marketplace. You have the option of purchasing them as a rider or add-on to your primary health insurance plan, or you can acquire them on their own as a stand-alone insurance policy. The payouts for claims under these plans are typically made in the form of a single lump sum payment upon the diagnosis of a critical disease. Coverage under these policies is provided for particularly specific issues.

5. insurance for groups of people

Plans for group health insurance can be acquired for a large number of people at once, in contrast to individual and family floater policies, which are only available to a single person. For instance, a company can buy group insurance for all of its employees, or a building secretary can buy a similar plan for all of the tenants of the building. Both of these options are available. These plans are relatively inexpensive, but they typically only cover the most fundamental types of medical problems. These plans are frequently purchased by employers as an added bonus for their staff members.

advantages of having health insurance

Getting covered by a health insurance plan is essential for a variety of reasons. Take a look at some of the most significant advantages that come with having our health insurance policies:

1. assists in containing ever-increasing medical expenses

People buy health insurance coverage in order to protect their finances against the consistently growing cost of medical care. You could wind up spending more than a few thousand rupees due to something unexpected like an accident or a medical emergency. It will be much simpler for you to receive the treatment you require for your recovery if you have a medical insurance plan because it will cover everything from the costs of an ambulance ride to the procedures included in daycare.

2. critical illness cover

A significant number of medical insurance plans additionally provide, for an additional premium, protection in the event of severe illness. This is yet another essential form of protection to have, particularly in light of the growing prevalence of diseases that are directly attributable to lifestyle choices. In the event that you are diagnosed with one of the serious illnesses that are covered by the policy, you will be eligible for a one-time payment. As a result of the high costs associated with addressing and managing these illnesses, critical illness coverage is another important advantage that comes with having health insurance.

3. easy claims that don't require cash

Every health insurance company will have relationships with a certain number of network hospitals that will allow you to make claims without having to pay cash. The entirety of the procedure of obtaining urgent medical attention is streamlined as a result of this. At a hospital that is part of a network, you are not required to make any kind of payment for any of the approved procedures. We will take care of the medical costs for all claims that are genuine, and you will not be required to pay anything for them. The only things you will be responsible for paying are the statutory deductibles and any non-covered charges.

4. additional safety measures

If you are already covered by a group health insurance plan, you may be wondering why it is necessary for you to get your own individual health insurance policy. Individual health insurance plans, on the other hand, typically offer more comprehensive coverage than group health insurance plans. In addition, if you leave the organization at any point, you run the danger of losing the cover, which could put you and your finances in jeopardy.

5. tax savings

In accordance with Section 80D of the Income Tax Act of 1961, taxpayers are permitted to claim a tax deduction for any premiums that they pay toward the maintenance of their health insurance plans. You can deduct up to INR 25,000 per year from your taxable income for the cost of an insurance policy that covers you, your spouse, your children, and your parents as long as they are younger than 60 years old. You are eligible for an additional deduction of 50,000 Indian Rupees (INR) if you have additionally purchased a policy for a parent who is over the age of 60 during the tax year in question.