Buying Health Insurance? Make Sure You Know These Before Making a Purchase

Health Insurance pertains to a specific type of insurance instrument that offers financial protection by essentially covering your medical expenses. A medical insurance policy is basically a legal contract between an insurance company and an individual or group that is buying the policy. As per this contract, the insurance provider agrees to provide specified health cover in exchange of a particular “premium” subject to various terms & conditions specified in the policy.

The most common form of health insurance plans in India offers coverage for the expenses incurred on hospitalization.  However, a range of products is available today which offer a variety of health covers, on the basis of the needs and choices of a policy buyer.

A health insurance company offers its facilities in 2 forms as mentioned below:

• The insurer makes a direct payment to the hospital. This is also known as the cashless health insurance facility.
• The insurer reimburses the expenses incurred by the insured/policy buyer on treatment associated with illness or disburses a fixed benefit when an illness occurs.

A health insurance policy comes with plans with Sum Insured ranging from  ₹ 5000 (in case of micro-insurance policies) to up to  ₹ 50 lakhs or even more in case of specific critical illness covers. However, most health covers provide between  ₹ 1 lakh to  ₹ 5 lakh Sum Insured.

Most non-life general insurance companies offer their health insurance policies for a duration of one year. However, there are some policies that are issued for two, three, four, or even five years duration too.

Different Types of Health Covers Available Today

Hospitalization Policy Covers

This type of health insurance covers fully or partly, the actual cost of the treatment for hospitalization during the policy term. It comes with a wider form of coverage which is applicable for various hospitalization expenses. The expenses covered include the costs incurred before and after hospitalization for some specified period, also known as pre and post-hospitalizing. This type of health insurance policy is generally available on an individual Sum Insured basis. However, these policies are also available on a family floater basis where the Sum Insured is shared across the family members.

Hospital Daily Cash Benefit Policy

This type of health insurance coverage provides a fixed daily Sum Insured for each day of hospitalization. In the case of ICU admissions or in case of specified illnesses or injuries, some insurers offer coverage for a higher daily benefit.

Critical Illness Benefit Policy

Critical Illness Specific health insurance covers provide with a Fixed Lump Sum amount to the insured in case of diagnosis of a specified illness or while undergoing a specified medical procedure. This amount is immensely helpful in terms of mitigating various direct and indirect financial consequences occurring out if a critical illness. In general, once this Lump Sum is paid, the plan ceases to remain in force. However, there are also other types of products that provide Lump Sum payment on undergoing a specified surgery (Surgical Cash Benefit), and other covers catering to the medical needs of senior citizens.

To enjoy the benefits of a health insurance policy, you will have too oft for a plan and pay the premium and renew the policy every year to enjoy the continuous benefits. You can click here to find the best health insurance policy as per your needs for the best price.