Health Insurance is an insurance that pays for medical, surgical, and sometimes dental expenses to the policyholders during health emergencies. The insured person can take several benefits from this plan. As it offers coverage for various expenses like day-care expenses, serious illness expenses, and surgical expenses. So here we are going to talk about the importance, tax benefits, and types of health insurance.

Moreover, these days having medical coverage that assists you in meeting your medical expenditure is an important requirement for everyone. Even, the hospitalization and treatment charges are quite high. Due to this, one has to take a healthcare plan to avoid financial woes. Let’s move further to find more about it.

Health Insurance

Health Insurance acts as a savior when you are not able to pay your medical bills. With the help of it, one can claim the payments of his medical expenses. Some insurance companies offer financial assistance for your medical expenses, in case if you fall ill or meet an accident. All you need to purchase a healthcare plan to secure your health in the future.

This is right that whenever one is going to purchase any health insurance policy, he may have many doubts related to it. Firstly, a person will look for its need, importance, and benefits. Then after he will take a step to buy it. Also, “health is wealth”. So proper care of health should be everyone’s priority.

Need for Health Insurance

Suppose you don’t have enough money to spend on your healthcare. In such a case, only a health insurance plan can save you from taking loans or selling assets to get proper treatment. As nowadays the healthcare costs are increasing at a fast rate. Also, the medical trend rate of India is about to increase at double the inflation rate.

The medical trend rate is the increase in per-person cost due to medical inflation. The predicted medical trend rate will be 10% in India, while inflation will be at 5%~. If you have a health insurance cover, then you can effectively fight serious illnesses like cancer and other heart-related conditions.

Importance of Health Insurance

As medical care is so expensive. Therefore, to deal with it, a healthcare plan for yourself and your family is equally important. On the other side, the hospitalization and treatment charges are quite high that they can burn a hole in your pocket. Sometimes it is too difficult if the person who earns for the entire family is on a hospital bed. But one can easily avoid this financial chaos just by spending a little amount to buy an annual premium plan of health insurance. Now, you can realize the importance of health insurance.

Furthermore, whenever you are looking for health coverage, ensure that it is the right one with premium benefits. This is the real importance of health insurance. A right insurance policy includes doctor consultation fees, ambulance charges, hospitalization charges, costs of medical tests, and sometimes post-hospitalization recovery costs also. This will also reduce your stress in times of medical emergency.

Benefits of Health Insurance Coverage

Financial Help Provided Without Hospital Bills

There are Fixed benefit healthcare policies which pay the full amount on the treatment of the disease. Also, you do not require to show the actual proof of hospitalization and diagnosis, such as medical bills.

Cashless Medical Care

Once you are insured with health policy, you can have cashless treatments. Because few insurance companies that work by collaborating with different hospitals.

Treatment at the Hospital of your Choice

If you opt for a proper health cover, then you can get your treatment anywhere in India and the world. Once you have a fair amount of health plan, you do not require to compromise with treatment. Although, to get treated anywhere in the world as per your wish you need the health insurance claim money.

Transportation Expenses

Some insurance policies also pay your ambulance charges. There are some fixed benefit health plans which offer a lump sum payout upon treatment. These plans cover your transportation expenses even during the time of post-hospitalization.

High Cover at Minimum Cost

The fixed benefit health policy provides high coverage amount for a lower premium. This will also help you in the savings and makes you stress-free even if treated with a serious illness.

Before and After Hospitalization Cost Coverage

A right insurance policy also pays your pre and post-hospitalization bills up to 60 days. The period of this coverage may vary as per the insurance plan.

No Claim Bonus (NCB)

There is also a bonus element named “No Claim Bonus” (NCB). This is paid to the insured person when he does not file a claim for any treatment in the last year. The health coverage policy also offers options for health checkups. Even a free health checkup is also given by some insurers based on your previous NCBs.

Room Rent

The room expenses are also included in the policy depending on the premium being paid by the policyholder.

Tax Benefits Of Health Insurance

The fixed benefit health insurance covers provide tax benefits. This means that the premium paid on health coverage is tax-deductible under Section 80D of the Income Tax Act. For example, if you pay the premium, you can take advantage of deduction up to Rs, 25,000 from your taxable income on the health premiums paid. But this offer is available for those who are below 60 years. If you and your family members are all above 60 years, then the highest deduction can be of Rs. 50,000. You can also take the same tax benefit of health insurance if you pay the premiums for your parents.

How to Choose the Right Insurance Coverage?

Well, this is tough to decide which plan is the best. As all insurance company offers a similar kind of insurance policy. Therefore, here are a few points that should consider while buying any policies:

  • Sum Guaranteed
  • Room Rental Capping
  • No Claim Bonus
  • Minimum Entry Age and Renewability Clause
  • Inclusion and Exclusion
  • Other Benefits

Eligibility Criteria

In India, people below 45 years of age are not needed to take any necessary medical checkups while getting a healthcare plan. They only need to disclose pre-existing conditions like hypertension or diabetes. It is often suggested that one should get a plan at an early age so that the premium would be less.

Documents Needed To Buy A Health Insurance

  • Passport Size Photographs
  • Age Proof such as Birth Certificate, Driving License, Passport, etc.
  • Proof Of Identity(PAN Card, Aadhar Card, Voter ID, Passport)
  • Address Proof (Electricity Bill, Ration Card, Driving License)
  • Some coverages need health check-ups especially the ones who are above 45 years.

Types Of Health Insurance

Once you are familiar with the importance and benefits of health insurance. Afterward, it’s high time to learn about the types of health insurance.

Individual Health Plan

This is the most important type of health insurance plan in India. This policy is only for individuals. It includes the medical costs if you get hospitalized. The premium of this plan is based on personal factors like age, medical history, etc.

Family Healthcare Policy

This type of health insurance plan provides a fixed sum assured for the family members under a single cover. The benefits of this plan can be avail by all family members or by anyone in the family.

If you ever get confused about which plan to choose between individual and family health insurance, then click here for better understanding.

Plans for Senior Citizens

This plan is made for the elderly people (above 60 years) providing healthcare for various serious illnesses during their old age.

Surgery and Serious Illness Health Plan

This policy is a good fit for those who need treatment against serious diseases like kidney failure, paralysis, cancer, heart attack, etc. The premiums paid on these policies are high.

Maternity Health Insurance

Under this plan, all the costs related to pre and postnatal care, child delivery expenses of newborn babies, including ambulance charges are covered.

Personal Accident Policy

This coverage includes hospitalization charges in case if the insured meet an accident.

Unit Linked Health Insurance

It is the best type of insurance plan to buy as it gives insurance and also helps in savings at the same time.

List of Healthcare Plans by Government of India

  • Central Government Health Scheme (CGHS)
  • Janashree Bima Yojana (JBY)
  • Rashtriya Swasthya Bima Yojana (RSBY)
  • Aam Aadmi Bima Yojana (AABY)
  • Universal Health Insurance Scheme (UHIS)
  • Employment State Insurance Scheme (ESIS)

For more details on these policies provided by the government, click here.

Claim Policy Of Health Insurance

The claim policy of health insurance is vital information that the policyholder should aware of it all the time. There are two kinds of claims which a person can select from when making a claim:

Cashless Claim Procedure

When the policyholder gives their insurance details to the respective hospital, he/she starts to get treatment. The hospital will further forward the medical bills to the appointed insurance company at the time of discharge. Afterward, the company will examine the bills and settle the payment due to the hospitals.

Reimbursement Claim Procedure

In this, the policyholder who is hospitalized has to pay the expenses to the hospital on discharge. After paying for the treatment, one can make this claim to the designated insurance company. The policyholder needs to give original medical bills. The company will inspect the claim and then take any approval decision. Once it is approved, the claim will be given to the insured person.

FAQs Regarding Everything About Health Insurance

What does a healthcare plan include?

It includes all the costs of hospitalization treatment and also covers the diagnosis of serious illness. Moreover, it covers ambulance charges and room rent.

What are the tax benefits of health coverage?

The health insurance plans offer tax deductions under Section 80D of the Income Tax Act, 1961. One can take tax benefits up to Rs. 50,000 for a year.

Why healthcare plans are so important?

These plans help in avoiding financial problems during health emergencies. It takes your financial burden. It covers all the expenses during pre and post-hospitalization.

Editor’s Note | Everything about Health Insurance

Buying health insurance during this pandemic situation is highly beneficial. As it will cover all the expenses that are needed to get proper treatment. The coronavirus is a serious disease so it is better to recover from it as soon as possible. Even the cost of the test for the Covid-19 is quite high. So as the other hospitalization expenses too. Therefore, the right health insurance policy is much required to deal with this pandemic for securing health.


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