More About Health Insurance

Health insurance is a type of cover that pays for the policyholder’s medical bills. It is an agreement between an insurance company and an insured whereby the company will reimburse the insured for expenses incurred for treating bodily injury or illnesses. Health insurance generally provides coverage for hospital stays, medicines and medical treatments.

  • Majority of the young adults tend to live under the impression that they do not need health insurance. They brush off the idea, stating that they are healthy enough right now.
  • Unfortunately, this is one of the biggest mistakes they make. A report released by the World Health Organisation showed that 26% of Indians between the ages of 30 and 70 face the risk of death from any one of the four main non-communicable diseases - respiratory disease, cancer, diabetes and stroke.
  • Health cover serves as a great tool to protect you and your family financially in case of any medical emergency. With advancements in technology, treatments are proving to be quite costly.
  • Availing a health cover can take off this financial burden from your shoulders. Additionally, you are more likely to get routine check-ups if you have an insurance cover.

Individual Health Insurance

Under the individual health plan, the insurer will take care of an insured individual’s medical and surgical expenses. The insurer will reimburse the insured individual for expenses relating to hospitalization and medical treatments until the cover limit is reached. The plan covers different kinds of illnesses. The policyholder is given the freedom to set the terms of the policy. Its salient features include cashless hospitalization as well as the insurer taking care of the pre and post hospitalization expenses. Depending on the insurer, you may be eligible for a no claim bonus if you do not make any claims during the tenure of the policy.

Family Floater Plan

The family floater plan, as the name suggests, is a health plan designed to cover you and your family together. Your entire family will be protected under a single plan. Any member of your family can make a claim in case of hospitalization or surgical expenses. One of the benefits of this plan is that if one of the family members falls ill and has to be hospitalized, the un-well member can utilize the total sum insured for treatment. Family floater plans generally cover the individual, spouse and children. In recent times, however, some health insurers are extending the cover to include dependent parents, parents-in-law and siblings.

Group Health Insurance

A group health plan provides insurance coverage to a group of people. Group health covers are generally availed for eligible employees of a firm. Since the risk is spread out, group health plans tend to be cheaper than individual health plans. Many insurance providers offer cashless facility at network hospitals and cover pre and post-hospitalization charges for a certain period. Some group health policies even provide maternity benefits. Insurance firms may also agree to provide coverage for pre-existing diseases provided that the policyholders agree to pay the extra premium. Unlike individual health plans, you do not get any benefits for not making any claims throughout the policy tenure.

Factors Affecting Premium Cost on your Health Insurance

Planning to buy a health insurance but not sure about how much insurance companies are going to charge you?

Age

It is cheaper to take out an insurance cover while you’re still young. The longer you wait, the more it will cost.

Body Mass Index

If you have a healthy BMI, you can get a policy the low rate.

Geographic Location

Where you live has an impact on your premiums. People who live in the same region tend have similarities in their risk profile.

Choice Of Profession

What you do for a living has a bearing on how much you pay. Premiums cost less if you have an office job.

Tobacco Use

You may have to shell out a bit more if you are a tobacco user.

Common Terms Used In
Health Insurance

Are you planning to buy a health insurance plan? Before proceeding ahead you need to first ask yourself whether you are thorough with the vital insurance concepts. At the time of making a purchase, many people seem to be unaware of what certain terms in the insurance agreement mean. Proper research prior to buying a plan is necessary if you want to make a well-informed decision.