There has never been a better time to purchase health insurance, given India’s skyrocketing healthcare costs.
Below, we’ve outlined the three basic categories of health insurance plans and their advantages to help you make an easier selection. Read, assess, and decide!
1. Mediclaim’s indemnity-based health insurance
These insurance cover hospitalisation costs (up to a particular percentage of the stipulated sum assured). You can protect yourself and your entire family under one insurance, and you can renew these plans annually. As you get older, the premium for these policies rises, thus becoming more expensive.
2. Health insurance plans with a set benefit
In the event that specific illnesses, surgeries, or hospitalisations take place, these packages offer a definite, pre-defined reward. These policies are typically sold separately from the Mediclaim policy as critical illness covers, hospital cash policies or personal accident covers.
3. Money-Back health insurance plans (unit-linked health plans)
These items, also known as ULIPs, are among the most sophisticated health insurance policies in India because they combine investments and health coverage. The benefit of such plans is that in addition to providing health coverage for the duration of the policy, your investment also generates returns based on the performance of the fund.
Benefits
In India, a number of businesses provide health insurance policies, and their services provide various benefits. Your choice of product (benefit) should be based on your health, lifestyle, anticipated healthcare needs, family medical history (hereditary disorders), financial situation, preferred hospitals, and geography (higher medical expenditures in metro areas), among other factors.
When purchasing family health insurance, you should keep the following common advantages in mind:
1. Hospitalisation benefit with no cash
At hospitals in their network, many insurances provide cashless hospitalisation. To ensure that you may receive treatment without paying cash, it is, therefore, advisable to find out if the top hospitals in your area are included in your insurer’s network.
2. Cash benefit from a hospital
Some insurers provide a hospital cash benefit that, regardless of the actual cost incurred, pays a certain amount every day in the event that the insured is hospitalised. Typically, this benefit is paid for a total of 60 days per year.
3. Benefit from intensive care unit
In the event that the insured person is admitted to the ICU, this provision provides him with a set sum of money each day. Typically, the amount due is twice the daily hospitalisation benefit.
4. Tax advantages
According to Section 80D of the Income Tax Act, health insurance premiums are not taxable. Deductions up to Rs. 25,000 and Rs. 30,000 (for elderly citizens) are available based on Budget 2015 provisions. You may be eligible to get a cumulative bonus in the form of additional coverage that is added to your current health insurance coverage if there are no claims in a given year. * **
A health insurance premium calculator is an easy and convenient tool you may use online to determine the amount of coverage required based on your needs.
* Standard T&C Apply
** Tax benefit is 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.