With healthcare prices in India on the rise, health insurance is a crucial component of financial planning. It provides people with financial security against medical costs incurred as a result of a injury, sickness, or disability. It is a contract that is entered between the insured and the insurer, under which the insurer covers the insured’s medical costs.
The COVID-19 epidemic has also brought attention to the value of health insurance because the costs of hospitalisation and treatment can be very expensive. So, with a health insurance policy in place, people and their families can feel secure.
How Does Health Insurance Work?
A contract for health insurance is made between a person (the insured) and an insurance provider (the insurer). The insurer receives a premium from the person, and in exchange, pays the insured person’s medical costs that have been spent as a result of an illness or injury. Depending on the terms of the policy, health insurance may pay for pre- and post-hospitalization costs, ambulance fees, and other medical expenses.
Health Insurance Policy Types
Health insurance policies come in a variety of types in India. These are the most typical sorts of policies:
- Individual health insurance: As the name suggests, only one person is covered by this coverage. A family floater policy often has a higher premium than an individual policy.
- Family Floater Health Insurance: This plan offers comprehensive coverage for the whole family under a single plan. Any family member covered by the policy is eligible to use the sum assured. The cost for a
- Group health insurance: This is a benefit that employers provide to their staff members. Typically, the employer is must the insurance premium.
- Senior Health Insurance: This plan has been created especially for older people. Due to the increased healthcare risks that come with ageing, the premium for this coverage is typically more than for a standard policy.
Make sure you compare health insurance before buying one.
Health Insurance’s Advantages
There are various advantages to having health insurance, including:
- Financial Protection: Health insurance protects consumers financially from unplanned medical costs, easing the financial load on the insured and their families.
- Tax Advantages: Section 80D of the Income Tax Act allows for tax deductions for health insurance premiums paid.
- Cashless Hospitalisation: Many health insurance plans provide this benefit, allowing the insured to get medical care without having to pay up front.
- Peace of Mind: Knowing that one’s family and one’s self are covered in the event of a medical emergency gives people with health insurance peace of mind.
Finally, health insurance in India is a crucial aspect of financial preparation. Having health insurance can give people and their families peace of mind in light of the COVID-19 pandemic and rising healthcare expenditures.
A health insurance calculator is a convenient tool you may utilise online to check the amount of coverage required based on your needs.
Claims are subject to terms and conditions set forth under general insurance policy’.
Standard T&C Apply
Tax benefits are subject to change in prevalent tax laws.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.