Health Insurance
Health insurance is described as a security
cover which secures the insured person's expenses in case of any health related
problem such as disease, accident, etc. It is basically a contract certifying a
deal between the consumer (insured) and the insuring company, wherein the company
agrees to pay all the expenses that are related to one's hospitalization. These
include hospitals bills, surgeon/doctor's fees, medical tests, medicines and other
medical related expenses.
Benefits of Health Insurance
Health Insurances secure the insured from the future uncertain illness and hospitalization.
All You need to pay the small premium regularly.
With medical costs rising, Health Insurance provide the back-up to all sudden and
uncertain medical emergencies.
It also reduces the financial risk in case of expensive medical care and post illness
care.
Types of Health Insurance:
General Health Insurance plan
The general health insurance plan includes the hospital room charges, doctor/surgeon's
fees, medical tests, medicines and other related expenses. The procedure is quite
simple. Different coverages are mentioned for different covers and the insured can
take benefits from them accordingly.
Specific Health Insurance plan
A specific health insurance plan includes cover for more critical diseases such
as heart problems, organ failures and transplant etc. Mostly, insuring companies
pay more emphasis on these illness but few companies also cover cancer and diabetes.
Generally, Specific health insurance plans offer cash on hospitalization and medicines
bills. They also reimburse the expenses on other surgical treatments.
Critical Illness plan
Under a critical illness insurance plan, the insured receives a lump sum amount
within a few days of diagnosing and other medical formalities. The money is given
on the basis of rough estimate and the plan activates only after that. Some insuring
companies have a waiting period of 30 days before claiming the insurance, wherein
the insured person or his relatives/friends would provide the encessary documents
such as bills, etc.
Alternatively, some insurers offer alternative option of receiving claims. Here,
reimbursements are given in installments over a period of 5 years (a choice needs
to be made at the time of making the claim by the insured person) These plans provide
cover for longer period, between 10 to 30 years. Typically, once an insurance claim
has been made, no more premiums have to be paid and the plan ceases. However, some
insurers provide the insured with a choice of continuing the plan for the remaining
critical illnesses for a lower insured sum and revised premium rates.
Accidental Plan
These plans provide help in case of accidental emergencies, and include the features
of a general health insurance plan. However, the medical covers are given according
to the severity of the accident(major and minor).
When to Apply for Health Plans:
Any Individual upto the age of 70 years can take a health insurance policy. For
buying the same, you need to undergo a Medical checkup after 45 years of age, but
in some companies, this age is extended to 55 years. The earlier you buy an insurance
policy, the better will it be in the long run.
Companies offering lower premium rates at a younger age in comparison to old aged
people. Insurers companies assume rate of interest in health insurance premium is
directly proportional to the insured age. As we grow older, the body becomes more
prone to diseases as compared to young age. Moreover if claims are not made in any
particular year, it is likely that the insurer might increase the cover provided
or/and reduce the cost of premium.
The importance of health insurance can’t be ignored in today’s world of expensive
medical care & looking at its benefits at a younger age, one must insure himself/herself
against any medical injury/illness earliest as possible as life given only a single
time.
Health Insurance Coverage:
Health Insurance Coverage includes the terms and conditions related to the expiry
and renewal of the contract between the insured and the insurers. Health Insurance
coverage has got the following covers:
Hospitalization cover: It covers for the hospitalization expenses
if the insured is hospitalized for more than 24 hours.
Pre and Post Hospitalization Expenses: It includes the reimbursement
of expenses in hospitals, medicines bills and other surgical treatments.
Pre existing diseases: Expenses related to pre existing diseases
in the insured at the time of insurance. These are covered after two, three or four
continuous renewals depending upon company to company. Day care medical expenses
:are also covered where insured is requiring less than 24 hours of hospitalization.
Types of Health Insurance :
Different companies give different Health insurance plans to their customers to
enjoy the maximum benefits. These plans include:
- Family Floater Plan: The plan made for the entire family
to take benefits off. The plan covers the health insurance of entire family under
one premium and cover. The Floater Plan will cover the entire family, but it has
a limit to the age for children.
- Critical Care Plan:
Critical Insurance policy covers you for major illnesses and offers a lump-sum benefit
on diagnosis of critical illness such as life-threatening cancer, Bypass Surgery,
stroke, heart attack, kidney failure and paralysis, organ transplant etc. Different
Insurance companies provide different Critical Insurance policies and coverage;
some provide insurance cover against 4 major critical ailments, while some cover
up to 10 ailments.
- Pre and Post Hospitalization cover:
Normally Health Insurance Policy covers for medical expenses incurred 30 days prior
and 60 days after hospitalization. In some companies this cover can extend to 60
days prior and 90 days Post Hospitalization.
- Pre-existing illnesses:
Insurance Companies don’t cover you for the diseases which
existed at the inception of the plan but some companies cover you after two, three
or four continuous renewals depending upon company to company.
- Personal
Accident cover: It is a benefit cover or add on cover where
insurer provides compensation if the person has met with an accident and has sustained
a bodily injury. In case of death and Permanent total Disablement (PTD), additional
compensation will be paid.
Factors to be kept in mind while deciding on your health insurance cover :
Age: The earliest you go for health insurance, the more benefits
you draw. The early years of your life might require a simple health policy to cover
the expenses, since the possibility of the occurrence of critical diseases is lower
at this age. Therefore, a higher cover is not required. As you grow old, you should
keep on increasing your sum assured/cover. In case of old age, when you could be
more prone to some of the critical diseases, you can also get the Critical Care
Rider added to your health policy; because this is the time when you need to guard
yourself from a major financial setback.
Marital Status: If the insured is married, he/she can enjoy more
beneficial health insurance plans by getting a medical insurance of the spouse against
any medical emergency. In this case, the insured can go for a Family Floater Plan
wherein you and your spouse will be covered under one policy (one premium). When
you have children in future, you can also have them covered under the same policy.
Family Background: If you have a family history of some diseases
like diabetes, the n you should avail the critical care plan which will cover you
against all the major illnesses you might be prone to due to hereditary reasons.
Income & expenses: Go for a higher health insurance cover if
you think that the cost of your family’s medical treatment would be higher. Further,
if you wish to take a high quality room during hospitalization, then also you must
opt for a higher sum assured health cover.