Health Insurance Policies and their Benefits

 An insurance is something in which a person pays the certain amount of money to the company and the company provides the protection against the damage of insured things. Insurance covers not only life but include general things too. Life insurance, Health insurance, general insurance, etc. are types of insurance offered by companies. today we will discuss the health insurance.

Health Insurance Plan

Health Insurance

Health insurance policy covers the medical expenses of a person like hospitalization, medicine, surgery etc. in case of illness or accidental injuries. Now a days our health is at very risk against the critical illness and the medical expenses are very high that you can not predict. Health insurance policy allows the treatment without any financial problem. There are many insurance health plan, which covers individual person, family, dependent parents and children. Health insurance is a cost effective way to counter the expensive medical expenses.

Health Plans

In market, there are many health insurance policies provided by insurance companies. Any person can take the policy according to the need. Here we are giving the details about some health plans:

Individual Insurance Coverage

Individual insurance plans covers  each individuals of the family covered in the plan. It includes the expenses for injury, hospitalization, doctors fee, illness, room rent etc. For example- if any person takes a plan of 2 lakh insurance and suppose his wife and one child is covered than each member will have an insured sum of 2 lakh. In this policy the premium amount is much higher.

Group Insurance

Group health insurance policies are mainly for enterprises. As an owner of the company you can take the policy to cover the health of your employees and their families too. Its premium is very low as compared to the individual insurance coverage. 

This type of policies helps in covering the expenses of hospital admission of employees. It is beneficial for the company to take these policies as ultimately it will boost employee productivity. In it injuries, critical illness, hospitalization, and maternity covered.

One important point to add on here is  in group insurance policies employees are covered only till the time they gonna work in that particular company.  

Family Floater plan

Family Floater policy is one of the other type of health insurance policy available for those who want to cover their whole family. In it the insured sum floats among all the members of  a family.

Its  premium is comparatively lower than individual health plan, that is why family floater plan is considered more beneficial. This policy covers you, your partner, children and parents too.  

It is generally recommended that members above 60 years of age should not be included in family floater plan as they are more prone to health problems which  ultimately impact the premium of policy.

Critical Illness Plan

We are increasingly under high of falling to life style diseases.  As per the reports of various global organization, due to unbalanced life style one out of four Indians is at risk of suffering from non communicable critical diseases before the age of 70. 

Following a healthy diet and doing regular exercise can prevent us to be away from such critical diseases but sometimes due to hereditary history, the chance of developing any life threatening critical disease increases. Unlike minor health issues, the treatment of critical illness cases could be financial drain on a family. 

As all  plans discussed above are not covering critical type of illness. In the diagnoses and treatment of these critical illness medical expenses are so much high that everyone can not afford. Even some times middle class family have to take loan. So it is very beneficial for such type of middle class family to take critical illness insurance plan, whose previous generations are more vulnerable to critical illness.  Here is the list of major disease covered in this plan:

  • Cancer
  • Organ Replacement
  • Heart attack
  • Kidney failure
  • Paralysis
  • Bypass surgery 
  • Stroke
  • Brain hamerage and many more

Top-up Health Insurance

Just imagine you are riding to somewhere in your car and one of the tyre got punctured and you don't have the stepney . To overcome the risk of  facing this problem an idea of adding a spare tyre came into the mind of Thomas Morris Devis in 1904.

If same thing happens in case of  your health insurance, i.e. if you have exhausted your regular health plan in paying hospital bills. The top up health plans plays a similar role of stepney. For example, if you are hospitalized, the insurer will pay up to some insured amount and after that threshold amount  a top up health insurance will play the major role. 
This policy is mainly for those who have already taken a health insurance policy with lowered sum, so to increase the insurance coverage top-up health insurance is useful. When your medical insurance claim beyond a threshold limit then top-up plan will be used.  For example- if you have 10 lakh of top-up plan and also have a primary health policy of 3 lakh. Then if medical claim of more than three lakh of then extra amount will be covered by top-up plan.

Advantages of Health Insurance

Today's time due to the various factors like lifestyle, pollution, and modernization we are vulnerable to many disease and does not know when they will come. As due to very high medical expenses to arrange the money at illness time is very difficult. So by giving some amount as a premium to the insurance company we can treat our illness without any financial tension. Here are following 6 major advantages of health insurance:

1. Cashless Treatment:

Insurance companies generally tie up with various global hospital networks where  you can complete all your payment just by showing your health insurance card. That global hospital will do all the settlement directly with insurance company on your behalf. And you will  not need to pay anything from your pocket.

One thing to point out here that you should make sure that whatever companies insurance policy you are about to take, the tied up global hospitals of insurance company should be available in your area.

2. Pre and Post Hospitalization coverage:

In Pre hospitalization coverage the insurance company covers all the expenses of treatment before getting admitted in the hospital.

And Post hospitalization coverage covers the expenses after getting discharged from the hospital. Pre and Post hospitalization both covers generally 60 days, this number of days may vary on the basis of your insurance policy and plan.

3. Organ Donor Expenses: 

Generally the cost of Kidney Transplantation is approx 3- 5 lakh, so due to the insurance policy you would have taken will help you to cover up these expenses.

4. No Claim Bonus:

No claim bonus is one the best benefit a policyholder can enjoy on his health insurance plan, it is a bonus money in the health insurance which get added in the sum insured for every claim free year. This no claim bonus will also help in lowering down your next premium.

5. Free Medical Check ups:

After watching your previous no claim bonus, various insurance companies will provide you free medical check up in their network hospitals.

6. Tax Benefits:

Under section 80D of income tax act 1961, you can take tax deductions in the year end because of your health insurance policy. By lowering down your tax, government is just trying to motivate your for taking care of you and your family health by taking health insurance plans.


Previous Post Next Post