In this world, nothing is more important than your health and the health of your loved ones. So having stable health is particularly important. You will be strong by wealth too. However, there is no surety about uncertain events or diseases that can hit your health.
Therefore, it is very important to add a protection layer of health by purchasing a health insurance policy. It is also a safeguard for you. It is one type of financial toolkit which covers your all-medical emergencies.
What is Health Insurance?
In simple words, health insurance is a contract between an insurance company and a policyholder wherein the insurance company agrees to pay all, or some medical expenses incurred due to accidents, illness, or injury. The policyholder can avail of such a policy against annual or monthly premium payments for a specific time. Additionally, It gives you coverage against any critical disease if you have critical illness insurance.
Different Types of Medical Insurance Plans
There are certain types of health insurance plans in India. Here some policies have been discussed below –
- Single-Person Health Insurance
The single-person health insurance policy provides medical insurance to an individual. You can buy these insurance plans for different members of your family and ensure that they are financially secure against any health disease and uncertain events. If something happened to more than one of your family members at the same time, this insurance policy would be enough to secure them all due to the separate sum insured amount.
- Family Health Insurance
This insurance plan covers the entire family. You can cover all your family members, including spouses, children, parents, and other dependents, at a single premium. This plan covers almost the same as the individual insurance plan. Senior citizens with medical conditions are not eligible for this plan. Overall, this insurance plan is more cost-effective than buying a single health insurance policy for each family member.
- Senior Citizen Health Insurance
Senior citizen health insurance plans are specially designed for people above the age of 60 years. In your family, it is especially important to cover elderly people against critical illness. Usually, the insurance premium is costlier because of the extensive coverage benefits. However, senior citizens can avail of tax benefits on the premium under section 80D.
- Critical Illness Health Insurance
This health policy covers critical diseases such as kidney failure, cancer, stroke, paralysis, etc. In this type of illness cost of treatment is exceedingly high, and it required to visit multiple hospitals for a prolonged period. Therefore, the total insured amount is paid in a lump sum so that it can be used to cover all medical expenses.
- Group Health Insurance
This type of insurance policy is made to cover a group of people. Usually, group health insurance is provided by an employer to its employees. The insurance premium is paid by the company itself and has provisions which ensure the refill of the sum insured. Moreover, the policy will close as soon as you leave the company.
Benefits of Health Insurance
There are many benefits of having a health insurance policy. Some of the important benefits are listed below –
- Cover Hospitalisation Expenses
The health insurance plans can offer you to cover all your medical expenses and unexpected hospitalisation. It also offers planned hospitalisation procedures without tension about finances. Nowadays, medical care and consultation cost is rising fast, so it is advisable to purchase medical insurance as early as possible.
- Financial Protection Against Critical Disease:
Nowadays, most health insurance companies provide coverage against critical illnesses like cancer, kidney failure, stroke, etc. Moreover, the insurance company pays a lump sum amount to the policyholder to fulfil their financial obligations to fight against their critical illness.
- Cashless Mediclaim
Health insurance policies are important to protect yourself financially against uncalled medical emergencies. Many companies offer cashless claims facilities where the insurance company pays your all-medical bills at the hospital on your behalf. There is no requirement for cash flow from yourself.
- Tax Benefits
You can avail of tax benefits under section 80D of the Income Tax Act, 1961. The deduction value differs based on the age group. If your age is under 60 years, you can avail of a maximum deduction of Rs. 25,000. If your age is over 60 years, a maximum of Rs. 50,000 can be claimed.
Now you can understand the importance of health insurance. Compare all-health insurance plans and choose the best insurance plan for yourself and your family. Health insurance is an investment in your health and your family’s financial security.