Thanks to high pollution levels and unhealthy lifestyle habits, there has been a notable increase in health issues among people of all ages. Moreover, healthcare costs are skyrocketing, and even a minor medical procedure can burn a hole in your pocket. This is when having adequate health insurance can ease your worries.
So, what is the meaning of health insurance and how can it help you during medical emergencies? Let’s find out in this article.
Definition of health insurance
Health insurance is an important insurance product that covers the hospital bills of the insured. If you are admitted to the hospital for an illness or injury, the insurer will cover a major part of your medical bills. This will reduce your out-of-pocket expenses and save you from financial setbacks.
A comprehensive health insurance policy offers wide coverage to policyholders against the following:
- Hospital bills
- Pre- and post-hospitalisation expenses
- Daycare procedures
- Domiciliary hospitalisation or home healthcare
- Road ambulance bills
- AYUSH treatments
- Organ donor expenses
- Pre-existing diseases
In addition to these, you can extend the coverage of your healthcare plan with important add-on covers, such as maternity coverage, critical illness cover, convalescence benefit, and hospital daily cash.
When it comes to health insurance claims, you can choose between cashless and reimbursement.
- Cashless claims: If you choose a network hospital of the insurer for a medical procedure, you can opt for cashless treatment. In this case, the insurer will settle your medical bills directly with the hospital.
- Reimbursement claim: In a reimbursement claim, you must settle the hospital bills from your pocket at the time of discharge and then file a claim with the insurance provider. The insurer will verify your bills and receipts and reimburse you for the amount in your bank account.
How to choose a good health insurance plan?
If you are looking to buy a health insurance policy, here’s how you can choose a good one —
- Sum insured: Choose a sum insured based on your age, current health, medical history, lifestyle, and city of residence. For example, if you are young and healthy, you can choose a basic sum insured of INR 5-7 lakh. On the other hand, if you are above 50 and have pre-existing conditions and unhealthy lifestyle habits, you may need a higher sum insured of about INR 10-15 lakh to cover your medical bills.
- Policy inclusions and exclusions: Select a healthcare policy with important inclusions. It is always wise to buy a policy with more inclusions and fewer exclusions.
- Network hospitals: Choose an insurance provider with good network hospitals in the vicinity. If there is a medical emergency, you can quickly reach the nearest hospital for cashless treatment.
- Add-on covers: Add-ons help enhance the coverage of a health insurance policy. Therefore, choose a plan with important add-on covers, such as critical illness cover and hospital daily cash, for better financial security.
- Policy document: Go through the fine print of the policy document to understand the limits, sub-limits, clauses, etc. For instance, some insurance policies have a room rent limit of INR 2000 to INR 4000 per day. Pre- and post-hospitalisation coverage can also vary from insurer to insurer. You must also check the waiting period and the co-pay clause.
Also Read - What Does Health Insurance Cover?
Conclusion
To sum up, health insurance undoubtedly is an important investment for individuals and families looking to secure their health and finances. Therefore, it is important to invest early in life and choose a plan wisely for maximum benefits. With insurance companies in India offering a range of health plans, make sure you do good research and zero in on a policy that best matches your healthcare requirements and pocket.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.