What is a health insurance and how to buy Health Insurance
What is health insurance?
Health insurance is an insurance policy that covers the medical costs incurred in an emergency. It is a contractual arrangement between the insurance company and an individual in which the former provides financial coverage for medical expenses on payment of premiums.
Who can opt for a health insurance plan?
A health insurance policy is available for resident Indian individuals aged 18 years and above. Minor children can also be covered as dependents under family floater health insurance plans. There are also senior citizen health insurance plans for the elderly. It's vital to keep in mind that inflation might cause health care costs to rise over time. Therefore, when selecting a health insurance plan, it is crucial to take inflation into account. To determine how much the expense of healthcare will probably rise in the future, use an inflation calculator. This will assist you in selecting a plan that would offer you sufficient coverage at an affordable price. So, there’s no particular age limit for health insurance plans as individuals of all ages can buy the policy. You can lookout for EMI options also, can calculate your EMI through emi calculator.
What coverages are available under this policy?
Health insurance policies offer a wide range of medical coverage which includes the following –
- Pre-and post-hospitalisation expenses
- Inpatient hospitalisation which includes room rent, doctor’s fees, operation costs, etc.
- Day-care treatments
- AYUSH treatments
- Organ donor expenses
- Maternity cover
- Ambulance costs
- Free health check-ups, etc.
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What are the exclusions and waiting periods under health insurance?
The common exclusions include the following –
- An initial waiting period of 30 days for illness-related hospitalisations
- 12-48 months waiting period for pre-existing illnesses
- A specified waiting period of usually 24 months for specified illnesses like tonsillectomy, joint replacement surgeries, cataract, etc.
- Dental and cosmetic treatments
- War, nuclear perils, and related claims
- Self-inflicted injuries or attempted suicide
- Congenital defects
- Treatments not advised by the doctor
- Experimental treatments, etc.
How to buy health insurance coverage?
Health insurance plans are available online and offline. You have to fill out the proposal form with your personal and medical details either online or offline. Provide all the required details in the form, submit supporting documents, such as proof of identity or income, and pay the premium. After you submit the form, it will be reviewed. If the insurance company approves the coverage, the policy would be issued.
What is an E-card?
An E-card is an electronic card that serves as a digital identification of insurance and proof of coverage. It is to be presented at the hospital to make your health insurance claim, as it contains essential information such as your name and the policy number.
How do I make a claim?
Health Insurance claims can be made in two ways:
1. Cashless claims: Cashless claims allow you to get treatment at one of the network hospitals of the insurance company without bearing the treatment costs. On admission to the network hospital, you can show your e-card or health card and get cashless treatments. You would have to fill out the pre-authorisation claim form for cashless approval.
2. Reimbursement claims: If you get treated at a non-network hospital, your claim will be settled on a reimbursement basis. In such cases, you have to pay for the medical expenses yourself when you are getting the treatment. After you are discharged, you can file a reimbursement claim for the expenses incurred. Just inform the insurer, upload relevant documents and bills, and get the reimbursement payment from the insurance company.
Important facts about health insurance plans
Health insurance plans are effective coverage options that come to your aid in a medical emergency. They give financial assistance and can help you with affordable medical costs and avail of quality treatments. However, given below are some points that you should remember when buying health insurance plans –
- In some cases, a pre-entrance health check-up might be needed before the coverage is allowed.
- Secure your family members under the family floater coverage option so that your loved ones can also get quality treatments in medical emergencies.
- You can get a deduction under Section 80D up to ₹25,000 if you are below 60 years and ₹50,000 if you are a senior citizen on the health insurance premium paid.
- The coverage tenure of most health plans is one year. You can renew the coverage lifelong as there’s no maximum coverage ceasing age.
- There are different types of discounts available in health insurance plans. Use these discounts to reduce the premium outgo.
- Health plans also offer a range of riders and add-ons for a comprehensive scope of protection. These add-ons are available at an additional premium and can help you customise the coverage per your needs.
So, understand the meaning of health insurance and how it works. Assess your coverage needs and buy a health plan for your family’s medical emergencies. Get financial assistance in medical eventualities to avoid financial strain and also to get high-quality medical treatments without worrying about their costs.
