Health Insurance is not compulsory in India. But, owning a health insurance policy is a good practise to inculcate for every individual. A good health insurance plan can offer you coverage and manage your finances too in times of skyrocketing medical expenses. A health plan guarantees peace of mind and certifies that you and your loved ones receive best treatment in a hospital of your choice.
Health Insurance gets you rightly covered through cashless treatment in case you fall ill. It gets you covered against numerous listed ailments, tests or hospitalization charges that you cannot always manage in times of rising medical expenses. In fact the need for a health insurance policy can prove fruitful as per IRDA, since the premium you pay can offer you a tax advantage under section 80D of Income Tax Act of 1961.
There are numerous insurance companies in India that offer customised Health Insurance to fit your treatment needs. Every company may vary in coverage option. At All Risk Cover we understand your search criteria and help you find the right fit health plan. We believe in making the complex search simpler and quick. With us, you can just Compare. Choose & Buy the best Health Insurance that suits your health needs instantly.
Health insurance is your protection against unforeseen medical expenses. Depending on the type of medical insurance you have, you are entitled to various health insurance benefits. These include:
Cashless Treatment: Several health insurance companies offer cashless claim facility. Here, you or your dependents covered in the policy, can get admitted to a network hospital (a hospital that is a part of the insurance company’s network). You should intimate the Third-Party Administrator (TPA) desk at the time of admission to initiate the cashless process. The advantage this facility offers is that you need not worry about settling the hospitalization expenses and file for reimbursement later. It must be noted, however, that health plans have sub-limits. If the expenses go beyond the sub-limit earmarked, you will have to bear the additional amount. Also, it is important to note that cashless claim is not available if you get admitted to a hospital that is not part of the insurer’s hospital network.
Pre and Post Hospitalisation: Based on your health insurance policy-type, you can avail pre and post hospitalisation expenses. Here, the insurer offers coverage for expenses related to your treatment for a period ranging from 30 to 60 days. Needless to mention, the expenses should be related to the ailment for which the person is hospitalised.
Health Check-up: Depending on your policy-type and your relationship with your insurer (i.e. you have promptly paid your premiums and haven’t claimed insurance frequently) your health insurance provider might extend free medical check-up for you and your family.
Ambulance Charges: If you wish for the insurer to bear your ambulance charges, then you can avail this facility as an add-on to your policy cover.
Tax Benefits: The health insurance premium you pay towards insurance cover for yourself and your dependents is eligible for tax exemption under section 80D of the Income Tax Act. The exemption allowed is up to Rs. 25,000 per year for people who are 60 years and below and Rs. 30,000 per year for people who are above 60 years of age. If you are paying health insurance premium for your dependent parents (who are senior citizens) as well, then you will be eligible for tax exemption up to Rs. 55,000 per year.
Additional Benefits: Health Insurance companies offer coverage for certain types of diseases or treatments. From time-to-time, health insurers make additions to the coverage offered to make their offering more attractive. For instance, Deviated Nasal Septum (DNS) is a rare condition where a person has a deviated nasal cavity. This can be corrected with a minor surgery. Not all health insurance companies cover this as it is a pre-existing condition (developed at the time of birth).
Depending on your individual health coverage requirements, there are different types of health insurance plans:
Individual Health Insurance Plans: As the name suggests, this is an individual health insurance policy. It provides health insurance coverage for several illnesses as specified in the policy. Benefits include cashless hospitalisation, etc. One can avail additional benefits by choosing add-ons.
Family Floater Plans: Typically, a family floater plan consists of self, spouse and two children. This plan offers health insurance cover to you and your family under a single plan. The amount covered is for a duration of one year from the date of commencement of policy. You can claim insurance for hospitalisation expenses for one or more family members. There is no restriction on the number of claims made provided the amount covered is not exhausted during the insurance period.
Senior Citizens Plans: These are health insurance plans designed to offer health insurance to people who are 60 years of age.
Cancer care: Cancer is a life-threatening illness. The cost of treatment is prohibitively high and can cause financial distress to the family. Many insurers provide health insurance coverage against this dreaded disease.
Critical Illness Cover: One can avail a critical illness cover either as a standalone plan or as an add-on to an existing health insurance plan. This is because several insurance companies do not cover certain types of illnesses as part of a regular health insurance policy. Critical illness plans provide insurance coverage for medical conditions such as dialysis, etc.
Maternity Plans: This plan covers child delivery (both normal and caesarean-section), pre and post-natal care for the mother (while extending insurance for the new-born as well) up to the validity of the insurance policy.
Health insurance is not mandatory in India. However, given the escalating cost of treatment, it is advisable to own a medical insurance cover – for self if you are an individual and for family if you have dependents.
Age at Entry (for adults): 18 – 65 Years
Age at Entry (for children): 90 days to 18 years
It may be noted that the health insurance provider might require health check-up prior to policy issuance if you are aged 35 years and above. Insurance companies do not generally cover cost of treatment for pre-existing diseases. It is advantageous if you decide to purchase a health insurance plan early in life – where the chances of you having some disease is lower.
You will notice that health insurance premium varies from one insurer to the other. There are several factors that determine a health insurance cover’s premium. These include:
The age of the proposer: Insurers charge a lower premium when the proposer is younger. This is because, the risk of illness generally increases with age. Insurers charge a higher premium from people in older age brackets to offset this risk.
Geography: Since cost of treatment is higher in metros and tier I cities, the premium is higher in these locations as opposed to the premium charged to a proposer who resides in a tier II city or town.
Extent of Cover: The sum insured is a large factor that determines your health insurance premium. If you are looking for a higher coverage, the premium increases accordingly.
Add-ons: If you choose add-ons to extend the facilities available in a regular health plan, the premium amount increases accordingly.
Claim-Settlement: Insurers with a higher claim-settlement ratio will charge a higher premium for the same.
Pre-Existing Disease: If you have a pre-existing disease (i.e. a health condition even before you subscribed to a health insurance plan) your premium outgo will be higher to cover expenses arising from such a condition.
Here are a few simple tips to lower your health insurance premium:
Individual Plan Vs. Family Floater: While individual health plans are cheaper if you are single, it is better to opt for a family-floater plan if you have dependents. It covers self, spouse and two children for a yearly premium.
Get Insured Early: The best way to save on health insurance premium is to subscribe for one at a young age. This will reduce your premium amount substantially. Also, you can avail tax benefits from Section 80D of the Income Tax Act.
Purchase Online: Several insurance companies provide a discounted rate to customers that purchase insurance policies online. When you buy a policy offline, operational overheads are loaded onto the policy. Thus, making the premium more expensive.