Health Insurance refers to an insurance product under which the insurer reimburses the cost of the policyholder’s treatment in case of an illness or an accident in return for which the policyholder pays a premium. A health plan thus allows the insurance company to offer adequate medical cover for hospital charges, day-care treatments, critical illness among others The health plan has many advantages such as cashless hospitalization and check-ups throughout the year.
Medical insurance is the insurance product which provides protection against the expenses of medical treatment. In return they are required to pay a bit more, their medical expenses will be partially catered for. Doors bills, consultations with doctors, hospitalization, cost of medicines, cost of using an ambulance, surgery costs are all included.
Types of health insurance
Health insurance can be divided into two main categories: Health insurance can be divided into two main categories:
Mediclaim insurance
Bare basics of health insurance Mediclaim are hospitalisation plans of health insurance. They are provided no later than after persons have been hospitalized and with original tariffs of hospital treatment submitted. As a rule, these plans offer insurance for the entire family, but for a limited amount of money.
Critical illness insurance
Among the essential types of health insurance, critical illness insurance plans are to cover specific critical conditions that requires the change of lifestyle and/or long treatment. These plans deliver the payouts depending on the critical illness cover chosen, unlike the Mediclaim insurance which delivers coverage based on hospital expenses.
Thus the original hospital bills are not required whatsoever. As a result, this plan provides a replacement for income when the person is not able to work because of the illness.
Benefits of health insurance
Easy cash-free claims
Insurance policies on health protect the policyholder when their health is bad. Therefore they are in a position to avoid facing time consuming claims processes and paying upfront. This arrangement is that insurance organizations remit payments for services directly to the hospitals of their clients.
Actively respond to the continuously rising costs of the medical and the related care services.
More often, people cannot afford to pay the increasing medical costs out of their pockets. That is why due to health insurance they can get the necessary health care in case of need.
Products in health insurance include fee and costs of doctors, pre- and post- hospitalization, surgeries, the variety of medicines, tests and many others.
Coverage for critical illnesses
Another benefit of health insurance is the illnesses like cancer, kidney diseases as well as other critical illnesses which take a long time to treat.
Additional protection
Essentially, some of the other features which may be provided in addition to general health insurance policies are for newborn and maternity, regular health check-ups etc.
Tax saving
It also saves taxes as a form of investment in the health insurance products that are to be sold. Section 80 D provides the policy holder an allowance of upto ₹ 25000 for the policy holder as well as the family and upto ₹ 50000 where the age of the policy holder is 60 or more.
To gain more insight on which health insurance plan will be best for you and your loved ones, book a free consultation today with Policyinserv: the trusted financial advisor and buddy.
