Everything you need to know about Health Insurance in India

Medical expenses are skyrocketing and so is the number of Diseases. We are coming across new diseases like Nipah Virus disease, Zika virus disease, and Ebola.  The number of people diagnosed with cancer and infectious disease is on the rise. India tops the world list with respect to lifestyle diseases like Diabetes, Cardiovascular disease. Heart diseases have killed more people in India than any other non-communicable disease and Mental Health Illnesses have been on a rise. High time we start investing in a health insurance policy, in case if you have not done it already.

Here I will share with you Everything you need to know about Health Insurance in India so that you can make a decision quickly and plan policy for your family.

What is Health Insurance?

Health insurance is a product that covers all your medical expenses. It is very much similar to an automobile or car insurance. If you take car insurance, then even if something happens to your car, you will get the money to get it fixed. Similarly, health insurance covers you if you get sick or injured.

Why should one opt for Health Insurance?

• Mostly a middle-income family won’t be ready to face the expenses thrown at them because of sudden or emergency hospitalization. Hence it is ideal for one to park some money foreseeing such a situation in future
• Again, medical expenses are skyrocketing. A cesarean operation which used to cost a couple of thousands earlier now hits at least 150000 INR  in ultra-modern hospitals
• It will prevent one from disrupting one’s own household savings or even leading to indebtedness
• Some disease treatment would be so costly that a common man won’t be able to afford it

What are the Benefits of taking Health Insurance?

1. Cashless Treatment:

You can avail of cashless treatments when you are covered under a health insurance policy. So you will get all medical treatment and you would not have to pay the hospital bill from your own pocket.

2. Transportation Expenses:

In case you hold a health insurance policy, the plan will cover the costs incurred on using an ambulance to transport you from your home to the hospital or vice-versa.

3. Medical Check-ups:

Free health check-ups are offered with most health insurance policies

4. Avail no claim bonus:

In case you do not make any claims over the course of an entire policy year, you will be rewarded

5. Tax Benefits:

Having a health insurance policy can offer tax benefits under Section 80D of the Income Tax Act

6. Coverage Of Pre- And Post-Hospitalization Expenses:

Health insurance provider covers certain days of pre- and post-hospitalization expenses. The number of days you get coverage depends on the health insurance policy you buy.

What are the different types of Health Insurance plans available in India?

Individual Health Insurance: Individual health plans are for individual policyholders. The premium would depend on previous medical conditions, age, location, etc.

Family Floater Health Insurance: This suits a family comprising of parents and 2 children. This is slightly more pricey than Individual plan, but then it would come cheaper than the amount you will have to pay in case you take different policies for each family member.

Senior Citizen Health Insurance: This is for people above 60 years. One will have to undergo a medical check-up before purchasing this plan.

Critical Illness Health Insurance: Critical illness like Cancer, heart attack, organ transplant, kidney failure, etc. get covered under this.

Maternity Health Insurance: This plan suits women who are expecting a child.

Best Health Insurance Plans in India

Difference between Health Insurance and Term Insurance

Term plans offer optimum life cover upon the death of the life insured and do not provide any maturity benefit. Health insurance provides insurance cover against medical and surgical expenses during the policy period. They will also reimburse the policyholder for expenses incurred from accidental injuries

Which are the top Health Insurance Schemes Offered by the Indian Government?

Rashtriya Swasthiya Bima Yojana: Provide health insurance to those who are Below Poverty Line. One can receive upto Rs.30,000.

Central Government Health Scheme: This scheme provides medical insurance to Central Government employees and their dependents

Employment State Insurance Scheme: An organisation or a factory with 10 or more employees can opt for Employment State Insurance Scheme for their employees. Employees who earn less than Rs.21,000 per month will have to pay 1.75% of their wages towards the scheme, while the employer will contribute 4.75%.

I have provided here basic information one needs to know about health insurance. To know more about Health insurance policy do visit below links.

1. Health Insurance by https://www.bankbazaar.com/

2. The Importance of Health Insurance by https://cleartax.in/s/health-insurance