Health insurance plans provide insurance coverage to the policyholder against any health-related expenses. Health insurance is a contract between the insurance company (insurer) and the insurance policyholder (insured) in which the insurer promises to pay a definite amount to the insured in case of any medical emergencies like accidents or illness, in return for the payment of a specified premium.
Is Health Insurance Important?
Buying a health insurance policy is important because medical care is expensive, especially in the private sector. Health insurance provides a variety of benefits such as:
- Through health insurance policies, we can get a sufficient amount to meet our treatment or medical expenses. We don’t need to take the money out of our savings. If you are aged 45 or above, you have to undergo a health check-up to get health insurance.
- Most of the health insurance companies have an association with leading hospitals to provide cashless treatment to the policyholder.
- Depending upon the insurance plans, health insurance also covers pre-hospitalization and post-hospitalization expenses such as
- Health check-up (even free check-up can be had); Diagnosis/ laboratory expenses
- Ambulance charges
- Hospital room charges
- Maternity expenses
- Vaccination expenses
- Family health insurance takes care of the medical needs of a family.
- Health insurance policies also provide No Claim Bonus (NCB) in case the policyholder does not claim for treatment in the previous year.
- Health insurance policyholders can also get tax deductions under section 80D of the Income Tax Act, 1961.
Hence, we can say that health insurance has become a big necessity in today’s life.
Types
Health Insurance may be broadly divided into the following plans or policies:
1.Individual Health Insurance
It covers the health-related expenses of an individual who has taken health insurance.
2.Family Health Insurance (Family Floater Plans)
Family Health Insurance covers all the family members of the policyholder under a single plan.
3.Critical Illness Insurance
This health insurance plan is meant for those individuals who suffer from critical diseases or illnesses such as Cancer, Paralysis, Kidney Failure, and for those who need surgery and expensive medical treatments. So, the premium to be paid will be higher.
4.Senior Citizens Health Insurance Plans
Health insurance plans that are exclusively meant for senior citizens (generally 60 and above years of age)
5.Group Health Insurance
Health insurance offered by the company (employer) to its employees and family (including their spouse, children, or parents). However, most of the employees opt for a mediclaim policy in which the premium is paid by the employer.
6.Maternity Health Insurance
Health insurance for expecting women that offers insurance coverage for the entire maternity-related expenses (delivery expenses, pre and postnatal care expenses, and so on).
7.Unit Linked Health Plans (ULHP)
ULHP are health insurance plans that provide the benefit of both insurance and savings. Through these plans, we can also meet other expenses that are not covered under health insurance plans. E.g.: ICICI Prudential Health Saver Plan
8.Personal Accident Plan
Health Insurance plans that help an individual to meet hospitalization expenses upon an accident.
Major Health Insurance providers in India
Here are some of the prominent health insurance providers in India:
- HDFC ERGO (previously Apollo Munich) Health Insurance
- Star Health & Allied Health Insurance
- Max Bupa Health Insurance
- SBI General Insurance
- Bajaj Allianz Health Insurance
- ICICI Lombard
Mahatma Gandhi had once said, “It is health that is the real wealth and not pieces of gold and silver.” With the change in lifestyle and escalation of complex diseases (such as the Coronavirus or Covid-19, Cancer, Cardiac diseases, etc.), to ensure good health, it becomes imperative that we choose suitable health insurance policies.
