Guide for Health Insurance and Types of Health Insurance
a month ago
4 min read

Guide for Health Insurance and Types of Health Insurance

The significance of healthcare insurance cannot be overstated. It serves as a shield against the unpredictable nature of medical emergencies, providing not only financial stability but also peace of mind. Ultimately, investing in the right health plan is an investment in both physical well-being and financial resilience.

The following article will guide you through the advantages and types of healthcare insurance. You will also gain insights into the main factors you must study while buying best health insurance plans. Let's get started.

Benefits of Medical Insurance

The following pointers highlight the importance of health insurance as a crucial tool for protecting one's health and financial well-being.

Financial Security

Healthcare insurance helps mitigate the financial burden associated with expensive medical treatments, hospitalisation, surgeries, prescriptions, diagnostic tests, and other healthcare expenses. It ensures that you are not financially drained due to unforeseen healthcare costs.

Convenience

Many health policies offer the benefit of cashless treatment wherein the insured can avail of medical services without making upfront payments. The insurance provider directly settles the medical bill with the network hospital. This process makes it convenient for the policyholder to avail medical treatment. 

Quality Healthcare

Health policy also provides access to a network of top healthcare providers. This allows policyholders to avail themselves of quality healthcare services without bearing the entire cost. Moreover, healthcare insurance encourages regular health check-ups and preventive care, promoting early detection of potential health issues.

Tax Benefits

Policyholders can avail of tax deductions on the premium paid for themselves, their spouse, children, and parents under section 80D of the Income Tax Act. This deduction reduces the policy's overall cost burden and incentivises individuals to invest in healthcare insurance for themselves and their families.

Types of Medical Insurance

Medical insurers have come up with various policies to meet the diverse needs of policy buyers. They can be categorised into four groups as follows. The best mediclaim policy for you among these will depend on your health requirements and budget constraints.

Individual Policy

Individual health policies are designed to provide coverage for a single person. They are tailored to the specific needs of the individual and can be customised based on factors such as age, health condition, and risk factors.

Family Insurance Plans

Family health plans are designed to cover the medical expenses of the entire family under a single policy. These plans often include coverage for the policyholder, their spouse, and dependent children.

Senior Citizen Plans

Senior citizen health plans are specifically tailored to meet the healthcare needs of elderly individuals. These plans often include coverage for age-related health issues, chronic illnesses, and pre-existing conditions common among the elderly. The premiums for senior citizen plans may be relatively higher due to the increased health risks associated with age.

Critical Illness Insurance

Critical illness insurance covers specific life-threatening illnesses that may require prolonged medical treatment, such as cancer, heart attack, stroke, etc. This type of insurance typically pays out a lump sum amount upon diagnosis of a specified critical illness.

Points to Consider While Buying Medical Insurance

Considering the following points before buying health policies can help you make an informed decision that aligns with your healthcare requirements and financial capabilities. 

Coverage

Every policy has a list of inclusions and exclusions. Studying that list and ensuring it covers the diseases you or your family are most susceptible to is essential. If not, you can consider buying additional riders. Additionally, you must analyse the sum insured and go for the one with a higher limit. This will allow you to cover more medical expenses and receive comprehensive coverage.

Cost

Medical insurance requires you to make regular premium payments. You must compare the premium costs of different policies and select the one that falls within your budget. At the same time, you must strike a balance between the premium cost and the coverage offered. 

Claim Settlement

A higher claim settlement ratio and a smooth, hassle-free claim settlement process are indicative of a reliable insurance provider. This becomes crucial when a medical emergency strikes, and you are in need of funds. Thus, you must choose an insurer that settles claims promptly and resolves any issues on time. 

Network

The network of hospitals that have tied up with the insurance company is an important consideration. A wider network ensures you can access quality healthcare services at various healthcare facilities. Additionally, it's essential to check whether the network includes hospitals that are easily accessible to you.

Policy Term

The policy term refers to the period for which the health policy remains valid. It determines how long the policy will cover you without needing renewal. Some policies offer long-term coverage, while others require annual renewal. Assess your long-term healthcare needs and preferences to choose a policy with a suitable policy term.

To Sum Up

Understanding the above details will help you make the right decision and proactively manage your healthcare costs. It's also advisable to read the policy document thoroughly. If you face any doubts, you must clarify the same with the insurance provider to avoid future disagreements.

Niva Bupa is a reputable health insurance provider that puts policy buyer needs at the forefront and adopts a customer-centric approach. Their diverse array of plans, wide network of hospitals, seamless claim process, and 24/7 available customer support make it a reliable option. Contact them for more details and customise your coverage.