There is absolutely no telling when a medical emergency will take place and drain your savings. Moreover, with the drastic increase in the prices of medicines, doctor’s fees, and treatment procedures, health insurance is becoming a necessity for the entire population.
Purchasing a health insurance plan acts as a safety shield by offering financial protection against medical costs. Apart from giving you monetary support, it provides you with access to a host of healthcare facilities so that you and your loved ones can get the best treatment when required.
This guide will help you understand best health insurance in detail, including its types, advantages, and more, enabling you to make an informed decision.
Table of Contents
What is Health Insurance?
Health insurance provides coverage for the medical costs resulting from sickness, injury, or accidents, either by facilitating cashless treatment or reimbursement. The policy assists in paying for doctor visits, hospitalizations, surgeries, prescription drugs and more.
Depending on the plan, other services such as maternity, preventive care, and mental health services may also be covered. The insurer provides financial security by paying for medical expenses on regular premium payments, thus ensuring that you do not have to bear out-of-pocket costs in case of unforeseen health incidents.
How Does Health Insurance Work?
Health insurance functions as a contract between the insurer and the policyholder. In the event of medical bills, the insurer pays the expenses, either through cashless care or reimbursement.
In a cashless mode, the bill is settled by the insurance company with the healthcare provider. Alternatively, in reimbursement, the policyholder pays for the medical bills first and then claims compensation from the insurer. The coverage depends on the sum insured, and the insurer supports by paying for eligible medical treatment as long as the premiums are paid.
What are the Types of Health Insurance?
Here is a detailed breakdown of the different types of health insurance plans:
1. Individual Health Insurance Plans
This is the most prevalent form of health insurance policy, which offers protection for a person’s medical costs. Premiums are based on individual parameters like age, health history, and lifestyle. It provides financial coverage in the event of hospitalization and pays for expenses such as surgeries, physician visits, and medication.
2. Family Floater Insurance Plans
As the name suggests, family floater plans have all members of a family insured under a single policy. The sum insured is split between the members, thus costing less compared to purchasing separate policies for individual members. It provides ease of access and a guarantee of security to all family members in any case of a medical crisis.
3. Senior Citizen Insurance Plans
These policies are tailored for individuals over the age of 60 and address the specific health requirements of elderly citizens. As elderly people are more prone to illness, these policies provide protection against age-related diseases, even without pre-medical checks.
4. Critical Illness Insurance Plans
Major life-threatening diseases such as cancer, heart ailments, kidney diseases, and stroke are covered by critical illness policies. A lump sum amount is paid upon diagnosis, and the money is spent on the expenses of treatment.
Additionally, policyholders can utilize the funds for other non-medical expenses, thus gaining financial support in case of income loss during the course of treatment.
5. Maternity Insurance Plans
These are customized for women and include pregnancy-related costs, such as prenatal and postnatal treatment, delivery, and ambulance fees. Newborn baby costs are also covered by some plans. As there may be a waiting period, it is advisable to buy this coverage in advance, ideally after marriage.
6. Unit Linked Health Plans (ULHPs)
ULIPs provide both health coverage and investment benefits. Under such policies, your premium is split, with a part being invested and the remaining being used to cover your healthcare expenses. As a result, this policy not only serves as a cover but also helps you earn good returns.
7. Mediclaim
Mediclaim policies are simple health insurance plans that take care of hospitalization costs incurred as a result of medical emergencies. It pays for in-patient treatments, surgeries, and other hospitalization expenses, ensuring financial protection during times of need.
8. Group Health Insurance
Usually offered by employers, group health insurance covers employees and, occasionally, their families. It provides extensive coverage at a reasonable price and is more cost effective than purchasing separate policies for all employees.
9. Hospital Daily Cash Insurance
This kind of insurance pays a fixed amount of cash per day for every day of hospitalization. In contrast to regular health insurance, which pays for medical bills, hospital daily cash assists with non-medical expenses like room rent, transportation, and food while in the hospital.
10. Top-Up Health Insurance
Top-up plans are designed to supplement existing health insurance coverage. These plans activate once the maximum claim amount of a basic policy is exhausted, offering additional coverage at a lower cost. It is a great way to enhance your coverage without increasing premiums significantly.
11. Disease-specific Health Insurance Plans (e.g., Corona Kavach)
Disease-specific policies cover specific health risks, such as COVID-19, by offering coverage for their treatment and associated costs upon diagnosis. For example, Corona Kavach covers healthcare expenditures resulting from COVID-19, providing specific protection in times of health emergencies.
Benefits of Health Insurance
Mentioned below are some of the common advantages of health insurance:
- Provides substantial coverage.
- Offers tax benefits.
- Covers pre- and post-hospitalization expenses.
- Covers daycare procedures.
- Includes coverage for annual check-ups.
- Provides cashless treatment.
- Ensures peace of mind.
Health insurance is a crucial tool to safeguard you and your loved ones from unexpected medical expenses. Whether you are an individual, a family member, or an employee of a company that offers group coverage, the right health insurance policy covers you for the required care without causing financial hardship.
Star Health is known for its varied coverage of medical needs, with flexible and personalized policies for your specific requirements. With 850+ branch offices in India and more than 14,000 network hospitals, we offer cashless claims, allowing easy access to quality healthcare at the time of need.
Call us now for a customized quote!