Different Types And Benefits Of Health Insurance

Health insurance is an extremely important asset to an individual’s life. With a rise in the number of health concerns and expensive treatment costs, it is important to insure one’s health and that of your family. This is where having insurance becomes crucial. It provides financial assistance and coverage against a lot of health concerns and hospitalisation charges. There are a lot of types of health insurance available in the market, each of which insures the person against specific health and medical issues. Let us try to understand the different types and benefits of health insurance.

Types of Health Insurance

• Individual Health Insurance

This type of insurance covers the illness and medical expenses of a single person. It includes hospitalisation, surgical, pre and post-medication expenditure till the issued limit of the insurance. The premium depends upon factors like the insurer’s age, medical history, etc.

• Family Health Insurance

This insurance covers the health and medical expenses of the entire family which includes spouse, kids, and elders. The sum insured is usually higher as compared to individual insurance since all family members are insured here. 

• Critical Illness Health Insurance

Critical illness health insurance provides a lump sum amount for life-threatening diseases. The insurer can seek medical care and financial support even without the need for a hospital stay. Hospitalisation, thus, is not a pre-requisite here as the diagnosis of the disease will allow you to avail of benefits. The amount to be paid for insurance is predetermined as it depends on the disease and its complexity as well. It provides cover for illnesses such as organ transplants, cancer, stroke, and multiple sclerosis.

• Senior Citizen Health Insurance

This health insurance is available for senior citizens who are 65 and above. It includes hospitalisation and medicine costs irrespective of whether the issue was due to a health concern or an accident. It also covers hospital and post-operation costs. The premium here is higher as senior citizens are more susceptible to illness due to old age.

• Maternity Health Insurance

This is a woman-specific health insurance. It includes pre-natal and post-natal cover. Another characteristic is that it covers delivery and ambulance costs for the insured. Some specific maternity insurance also provides baby cover, which includes expenses related to the new born baby, but only up to a certain period.

• Personal Accident Insurance

Accidents do not come with a warning. Thus, having personal accident insurance is important. It covers a physical loss that a person might have undergone whether it is in the form of death or disability due to an accident. This particular type of insurance will pay the policyholder in the case of an accident either by rail, air, drowning, or collision. For example, specific serious injuries such as loss of a certain body part like limbs, arms, eyes, etc after the accident are covered in the policy. In case of death due to an accident, the insured person’s nominee will be eligible for the sum assured.

Benefits of Having Health Insurance

• Daily Hospital Cash 

Some specific insurance allows the insured a daily hospital cash facility. This covers non-medical expenses like transportation or meals that were provided during the hospital stay. The cash benefit is determined at the time of purchasing the particular policy and is paid directly to the insurer.

• Hospitalisation Cover 

One of the major costs that any individual seeking treatment has to bear is that of hospitalisation. This is where health insurance comes in handy. It provides cover for hospital stays, room rent, doctor fees, medical procedures, surgery fees, nursing care, etc. It also ensures pre and post-hospitalisation as well as diagnostic tests and follow-ups. Some insurance policies also cover consultation with the doctor post-treatment. 

• Ambulance Cover

Health insurance allows the insurer to use the ambulance cover benefit. Ambulance cover allows the transportation of an injured person during times of emergency to a hospital facility or medical centre. The insurer can claim the amount depending on the sum incurred.

• Yearly Medical Checkups

Yearly medical checkups detect early risk factors associated with a particular disease. With health insurance, the insured is likely to avail of the yearly medical check-up option. This would allow them to get access to several benefits, such as early screening tests like blood tests, physical examinations, etc, to get a clear picture of their health. 

• Tax Benefits 

Buying health insurance will support the insurer in tax deductions as stated in section 80 D of the Income Tax Act. The bearer will get access to tax deductions of up to Rs. 25,000 yearly for their health insurance premiums. Senior citizens get an amount up to Rs 50,000. The amount as well as the tax benefit varies from policy to policy.

Summing Up 

As the cost of medical treatment and hospitalisation increases, having health insurance becomes a necessity. The type of insurance one chooses depends upon the individual as well as their needs and the complexity of their illness. Nonetheless, having health insurance is essential to secure the well-being of an individual.

FAQs

Is Undergoing a Health Check-up Compulsory Before Getting Health Insurance?

One may or may not always need to get a health check-up done before buying health insurance. It depends upon the type of health insurance they have purchased and the norms related to it.

What Kinds of Expenses are Not Covered by Health Insurance?

Health insurance doesn’t usually cover outpatient treatment, cosmetic surgeries, rehabilitation, respite care, etc.

How Much Health Insurance Coverage Do I Need?

Ideally, a cover of 5-10 lakhs is sufficient to manage major illness or treatment costs, and hospitalisation charges.