Health Insurance is a type of insurance that covers the medical expenses of the insured due to an illness or accident in exchange for a premium amount. It enables the insurance company to provide medical coverage for hospitalization expenses, day care procedures, critical illnesses, etc. A health plan also offers multiple benefits, including cashless hospitalization and free medical check-ups.
Health insurance is an insurance plan which offers coverage for medical costs. By paying a premium, a part of their medical bills is covered. Expenses related to doctor’s consultations, hospitalisation, medicines, ambulance use, and surgery are all covered.
Types of health insurance
Health insurance can be divided into two main categories:
Mediclaim insurance
A common health insurance plan, Mediclaim refers to hospitalisation plans. They offer coverage after insured individuals are hospitalized and original hospital bills are submitted. Generally, these plans provide coverage for the whole family but only up to a specific limit.
Critical illness insurance
Critical illness insurance plans provide coverage for critical conditions, which necessitate making lifestyle changes and/or extended treatment. These plans provide payouts based on the critical illness cover chosen, as opposed to Mediclaim insurance’s coverage provided on the basis of hospital expenses.
Hence, no original hospital bills are needed. Consequently, this plan substitutes one’s income when their illness renders them unable to work.
Benefits of health insurance
Easy cash-free claims
Health insurance policies prioritize the policyholder’s well-being when their health suffers. Hence, they are able to prevent facing time-consuming claims processes and paying upfront. Insurance companies pay hospitals directly on behalf of their customers.
Keep up with increasing medical costs
Not everyone can pay the rising medical expenses on their own. Hence, health insurance allows them to receive adequate health care when needed. Health insurance plans cover fees and costs of doctors, pre- and post-hospitalization, surgery, medicines, tests, and more.
Coverage for critical illnesses
Health insurance also covers illnesses such as cancer, kidney conditions, and other critical illnesses, which necessitate long-term care.
Additional protection
Health insurance policies can also include added features for newborn and maternity cover, health check-ups, etc.
Tax saving
Investing in health insurance also helps save taxes. Under section 80D, policyholders can avail up to ₹ 25,000 in deductions for themselves and their family and up to ₹ 50,000 when the insured individual’s age is 60 or over.
To gain more insight on which health insurance plan will be best for you and your loved ones, book a free consultation today with DailyFinserv: your financial advisor and friend.
