Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. It helps cover the cost of preventative care, treatments, and procedures, reducing the financial burden on the insured. Health insurance plans can be purchased through an employer or purchased individually, and the benefits and coverage offered can vary depending on the plan chosen.
A health insurance plan is a type of insurance that pays for the insured’s medical, dental, and surgical costs. The insurance acts as a means of compensation for the insured individual who has incurred costs as a result of any disease or accident.
Health insurance will protect you from financial harm by providing adequate coverage for unexpected medical expenses. The following costs are covered by the leading health insurance providers:
- Expenditure incurred during pre and post hospitalization
- Psychiatric support
- Annual health check-ups
- Maternity related expenditures
- Critical illnesses
Why do we need health insurance?
Health insurance is important as it helps cover the cost of medical treatments and procedures, reducing the financial burden in case of unexpected illnesses or accidents. It also ensures access to necessary healthcare services and can improve overall health outcomes.
Mental health issues on the rise:
Mental health problems are becoming more prevalent as a result of the confusion, stress, and negativity in the world. As a result of inadequate attention and treatment, mental health problems are becoming more prevalent and out of control. According to data from 2017, 224 million individuals worldwide have hypertension-related disorders.
Expensive healthcare facilities:
Healthcare facility costs are high due to industrial inflation, which has driven up the cost of treatments. As much as Rs. 3 lakhs might be spent on medical treatments for ailments like angioplasty and cardiac surgery. It is difficult to receive high-quality care at reputable medical facilities without suitable health insurance coverage.
Uncertain times, thanks to pandemics like Corona:
Uncertain times brought on by flu outbreaks like Corona Because of COVID, the world’s infrastructure is severely hampered. You can combat any such epidemic, at least financially, with health insurance.
Youths vulnerable to severe diseases like Cancer:
Children and teenagers are more susceptible to deadly illnesses like cancer. Be aware that such serious medical disorders might require expensive care.
Lifestyle issues:
Issues with lifestyle: Young people’s sedentary habits make them more likely to need hospitalization, which drives up costs.
You will be motivated to acquire health insurance by these health realities and statistics.
Types of Health Insurance?
Family floater health insurance – These plans make sure that each person covered by a single policy may access a single amount.
Individual health insurance – This type of insurance covers a single person’s medical expenses.
Health insurance for seniors – These insurance policies, which are created to cover the medical costs of the elderly, are available to persons over the age of 60.
Health insurance for maternity-related difficulties – Maternity insurance programs cover prenatal and postnatal medical costs.
Critical illness – These insurance plans cover the high medical costs brought on by a condition that poses a serious risk to one’s life.
Group health insurance – Businesses typically favor such programs for their employees.
Top-up health insurance — If the cost of your care has gone risen over time, you may want to add a top-up insurance policy to your current coverage.
How does Health Insurance help Tax Benefits?
We all put forth a lot of effort to make a livelihood, therefore it is not wrong to search for ways to reduce our taxes. Purchasing health insurance is a wise decision if you want to benefit from tax breaks. The insured or his or her parents may claim tax advantages on the yearly premium in accordance with Section 80D of the Income Tax. The breakdown of tax exemptions is as follows:
- Deductible medical expenses: Health insurance premiums and out-of-pocket medical expenses can be tax deductible if they exceed a certain percentage of your adjusted gross income.
- Health Savings Accounts (HSA): Contributions to an HSA account are tax-deductible, and withdrawals used for qualified medical expenses are tax-free.
- Flexible Spending Accounts (FSA): FSAs allow pre-tax dollars to be set aside for qualified medical expenses.
- Employer-sponsored coverage: Premiums paid by an employer for an employee’s health insurance are tax-free to the employee.
Note: Tax laws are subject to change, and it’s best to consult with a tax professional for the most up-to-date information.
| Eligibility | Exempted Limit |
| Self+Family (Spouse and Children) | Up to 25,000 INR |
| Self+ Family+Parents(Below 60 years) | Up to 25,000 + 25,000= 50,000 INR |
| Self+Family (Eldest member below 60 years)+Parents (Above 60 years) | Up to 25,000+ 50,000= 75,000 INR |
| Self+Family (Eldest member above 60 years)+Parents (Above 60 years) | Up to 50,000+ 50,000= 1,00,000 INR |
Are you scared off by the technical language?
The following terms will be used often when you consider purchasing health insurance coverage. We always uphold total openness, thus this list demystifies and clarifies the difficult words for you:
Bonus cumulative: Your insurer will automatically increase the covered amount if you do not need to file any claims for health insurance throughout the year. Remember that no additional premium will be assessed in this case. This growth is referred to as a cumulative bonus.
Sum insured: Your insurer’s maximum payout to you for a given year is known as the sum insured.
Daycare procedures: Daycare procedures are operations or short-term treatments that need a patient to be admitted to the hospital.
Pre-hospitalization costs: Pre-hospitalization costs are the medical expenditures you pay before being admitted to a hospital.
Deductible: Some health insurance plans require you to pay a portion of the premium before the insurer will begin to cover you. This particular sum is referred to as a deductible.
Portability: Let’s say you don’t like your current health insurance and want to move, but you don’t want to lose your waiting period. The entire switching process is referred to as portable.
Co-payment: This word means that you and your insurance will divide the costs. This implies that even if your insurer will pay a big sum, you will still have to make a little payment.
Waiting period: During this time, you must wait before utilizing any health insurance benefits.
Pre-existing disease: In this context, any ailment you had before to purchasing your insurance coverage is referred to as pre-existing.
FAQs about Health Insurance
Q: What is PPO?
PPO stands for “Preferred Provider Organization.” It is a type of health insurance plan that provides more flexibility in choosing healthcare providers than other types of plans, such as HMOs. With a PPO plan, you can see any doctor or specialist you want without a referral, but you may pay more for seeing out-of-network providers. PPOs typically have a network of preferred providers that offer services at discounted rates, and you can still receive coverage for out-of-network care, but at a higher cost. PPO plans also usually have higher premiums and deductibles compared to HMOs.
Q: What is deductible health insurance?
A deductible is a set amount that you must pay out of pocket before your health insurance begins covering the costs of your medical treatments and procedures.
For example, if you have a $1,000 deductible, you will be responsible for paying the first $1,000 of eligible medical expenses yourself. After you meet the deductible, your insurance will start covering a portion or all of the remaining costs, depending on your plan’s details.
The higher the deductible, the lower your monthly premium payment will be. However, you will be responsible for paying more out of pocket before your insurance kicks in. Deductible health insurance is a way for individuals to take on more financial responsibility for their healthcare costs in exchange for lower monthly premium payments.
Q: What does a mediclaim policy for family cover?
A mediclaim policy for a family typically covers medical expenses for all members of the insured family, including spouses, children, and dependent parents. The coverage can include hospitalization expenses for illnesses, accidents, surgeries, and other medical procedures. The specifics of what is covered vary among insurance providers and policy plans. Some common expenses covered by a mediclaim policy for a family may include:
- Hospital room and boarding expenses
- Medical expenses, such as doctor’s fees, diagnostic tests, and medicines
- Pre- and post-hospitalization expenses
- Daycare procedures
- Ambulance costs
- Organ transplantation expenses
- Domiciliary treatment expenses
It’s important to carefully review the policy’s terms and conditions to understand what is and isn’t covered.
Q: How to buy health insurance for parents?
To buy health insurance for parents, follow these steps:
- Determine coverage needs: Consider the current health status and age of your parents, as well as their medical history and future health risks. This will help you determine the amount of coverage and specific features you need in a health insurance policy.
- Research insurance options: Shop around and compare different health insurance policies from various insurance providers. Consider factors such as coverage limits, deductibles, a network of healthcare providers, and premium costs.
- Review policy details: Carefully read through the policy details, including the terms and conditions, exclusions, and claims process.
- Choose a policy: Select a policy that meets the needs of your parents and fits within your budget.
- Buy the policy: Complete the application process, provide the necessary information and pay the premium.
- Maintain the policy: Regularly review the policy to ensure it still meets your parents’ needs, and make changes as needed.
It is advisable to compare and review different insurance options to find the best policy for your parents. You may also want to consult with a licensed insurance agent or financial advisor for personalized assistance.
Also, read How to Claim Insurance for Car Accidents 2023!
