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Understanding Health Insurance Policies

Posted On : 02 March 2023, 1 Years Ago. Health-Insurance

According to a National Health Accounts study, the total out-of-pocket expenditure on health care in 2016-17 was 58.7%. India has a low penetration of health insurance policy due to lack of education regarding the topic.

 

Healthcare insurance is a type of insurance which covers the expenditure incurred on hospitalisation, doctor’s fees and various other medical expenses. It provides a certain amount of coverage on various diseases depending upon the plan an individual buys.

 

Importance of Buying a Health Insurance Policy:

According to the National Family Health Survey-5, half of the Indian households don’t seek public health care facilities, which results in a heavy credit burden for private treatments. Having a health insurance policy can reduce this burden to a considerable amount and offer following benefits:

 

  • Cashless Treatment - Medical emergencies are hard to predict which calls for the best health insurance policy to cover your loved ones. It helps you sail through heavy bills of hospitals by giving cashless treatment.
  • Medical Checkups - Nowadays there are various policies which also cover the cost of regular body checkups for the given time frame.
  • Tax Benefit - The premium paid on health insurance policy is tax deductible under Section 80D of Income Tax Act.
  • Pre and Post Hospitalisation Cost Coverage - The policy also covers the expenses before and after hospitalisation up to 60 days which safeguards you from out-of-pocket expenses.

 

There are several health insurance companies, claiming their products as the best health insurance policy in the market but one has to make a smart choice when buying the health insurance policy for family or themselves.

 

Major Types of Healthcare Insurance 

Ever wondered which is the best health insurance policy in India? The answer to this question depends upon the needs of the individual and the types of insurance offered by various health insurance companies. Some of them are listed below:

 

Mediclaim Plan

This is the most basic plan which covers your family from hospitalisation expenses to a certain limit mentioned in the policy document.

 

Critical Illness Plan 

This plan covers certain life-threatening diseases. This includes critical illnesses which require prolonged treatment. The insurance covers the cost of treatment and medication and even works as a substitute for income for the time the person does not resume the work.

 

Group Medical Insurance Policy

This type of insurance provides coverage to specific groups of people such as employees or members of any organisation. This usually includes accidental hospitalisation, COVID insurance, critical illness cover etc.

 

Maternity Medical Insurance 

This is another common policy which covers the pre and postnatal care expenses. This also covers the delivery cost of the child including expenses after the birth up to a certain time period.

 

Unit Linked Health Plan

There are various health insurance companies providing this type of plan which is a combination of insurance and saving. This helps in building a corpus to meet the expenses which are not even covered in the policy. 

 

Family Healthcare Insurance Plan

This is considered as the most common and among the best health insurance policy which covers all the members of the family by paying a fixed amount of premium per annum. It covers various diseases covering all the members.

 

Personal Accident Plan

This policy covers the hospitalisation expenses in case of accidents and the premium depends on the amount of cover taken. It is specifically designed to cover an individual against injuries, disability or even death.

 

As there are a variety of policies available, buyers have to policies before buying a health insurance policy for family or for themselves. A well informed decision can save lots of money and stress a person goes through on rough days.

Secure your health with comprehensive insurance plans from Nivabupa

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