Importance of Health Insurance
* What is a Health Insurance Policy?
A Health Insurance Policy is an agreement between the insurance company and customer by which the insurance company promises to provide any medical expenses that may arise during the period of the policy. The insurance company generally ties-up with some hospitals to provide free medical services to the insured.
* Why should we take a Health Insurance Policy?
There are many important reasons which support buying a health insurance policy. They are:
1. The rise in the number of diseases: There is a drastic rise in the number of diseases as our lifestyle has changed phenomenally compared to life we lived in the previous centuries. So, the incidence of illness also has increased due to our new habits like sedentary work, intake of adulterated food, large intake of fatty foods etc. Hence, taking a health insurance policy will safeguard our finances.
2. Huge medical costs: The medical or hospital expenses have risen excessively due to rise in technological innovations and diagnosis techniques. All this spending may exert pressure on our finances. That’s why, a nice medical insurance policy will come in handy in any unfortunate incidents.
3. Coverage of many expenses: A decent health insurance policy will provide for pre-hospitalisation, post-hospitalization, and out-patient expenses. It also meets the health check-up expenditures of policyholders.
4. Income-tax savings: All the premium paid against a health insurance is deductible under 80D of Indian Income Tax Act.
5. Other Benefits: Some policies cover ambulance charges, day care facilities and Ayush etc. Some others provide regular heath check-ups and vaccinations.
* What are the key components of a typical Family Health Insurance Policy?
# Hospitalization cover
During hospitalization of insured person, room, boarding and nursing expenses Surgeon, Anaesthetist, Medical Practitioner, Consultants, Specialist Fees, Oxygen, Operation Theatre, Diagnostics, Cost of pacemaker and many more are covered under the policy.
# Pre- and Post-Hospitalization Coverage
Pre-hospitalization costs are covered up to 60 days earlier to admission in the hospital. And post-hospitalization costs incurred up to 90 days after the discharge from the hospital.
#Ambulance charges cover
Policyholders can get ambulance charges for emergency transportation to hospital. Insured can also avail air ambulance charges up to 10% of the basic sum insured during the entire policy period.
# Cost of Health Checkup
This health insurance plan offers health check-up expenses up to 1% of Sum Insured for a maximum of Rs.5,000 every three years for those with Sum Insured of Rs.3 lakh and over.
# Domiciliary hospitalization
Under the Family Health Insurance Plan, you can avail treatment at your residence for a period beyond three days. However, there are certain terms and conditions associated to this plan.
# Policy Organ Donor Expenses
If you are the receiver, then the expenses for organ transplantation will be paid up to 10% of the sum insured or Rs.1 lakh, whichever is less.
# Coverage for New Born Baby
According to the plan, a newborn after the age of 16 days can avail the policy coverage. It offers newborn coverage up to 10% of sum insured for a maximum of Rs.50,000.
# Domestic Medical Evacuation
According to the policy, the company will refund the expenses incurred towards transportation of the patient from the treating hospital to another hospital.
# Automatic Restoration of Sum Insured
The plan is considered as a special feature of insurance. For sum insured Three lakhs and above, there is 100% automatic restoration of the sum insured if the original is fatigued.
# Second Medical Opinion
The policyholder can get a second medical opinion from a doctor in the company’s network of Medical Practitioners.
# Recharge Benefit
When the Sum Insured is exceeded, it offers additional cover up to a certain limit.
