Health Insurance

Health Insurance

Health Insurance is a type of insurance that covers your medical expenses. A health insurance policy is a contract between an insurer and an individual/group in which the insurer agrees to provide the specified health insurance cover at a particular premium subject to terms and conditions specified in the policy.

Types of Health Insurance:

• Indemnity Plan: Indemnity based insurance plan covers the hospitalization expenses along with having subtypes like Individual Insurance, Family Floater Insurance, Senior Citizen Insurance and Group Medical Insurance. For example Arogya Sanjeevni, Corona Kavach and various other insurance company specific products.
• Fixed Benefit Plan: Under this plan, a fixed amount is paid for pre-decided diseases like critical illness, cancer, heart diseases, etc. Fixed Benefit Plan also has its subtypes like Preventive Insurance, Critical illness, Personal Accident. Some of its products are Personal Accident, Corona Rakshak, Hospi Care. Etc.

Benefits of Health Insurance:

• Coverage against medical expenses: Health insurance plans protects you from high medical costs. It covers various expenses like domiciliary expenses, hospitalization expenses, day care procedures, and ambulance charges, etc. In case of an emergency, you can rest assured of the medical expenses and focus on your health without any financial pressure.
• Coverage against critical illnesses: Various Insurance Companies offer critical illness insurance, either as a standalone plan or as a rider. Such insurance policies offer coverage against life-threatening diseases such as bone marrow transplant, kidney failure, stroke, and loss of limbs, among others. Upon diagnosis of any of the critical illness from the predetermined list of your policy, you are entitled to receive a lump sum amount. This amount may be used to meet your illness-related treatment costs, daily expenses, and any other financial obligations.
• Cashless Claim Benefit:Under cashless claim benefit, one does not need to make any out-of-pocket payments. The hospitalization expenses are settled between your insurer and the hospital. One must get admitted to the hospital that comes under your insurance company’s panel in order to avail this benefit. You would need to fill up a pre-authorization form and display your health insurance card to enjoy the cashless facility.
• Tax Benefit: Health care plans provide tax benefits. Premiums paid towards your health care policy are eligible for tax deductions under Section 80D of the Income Tax Act, 1961.

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