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Health Insurance Guide

Understanding your options for financial protection and security

What is Health Insurance?

Health insurance is a type of coverage that helps you manage the cost of medical expenses and healthcare services. When you have health insurance, the insurance company pays a part or the entire amount of your medical bills, depending on the terms of the policy. This financial protection ensures that you can access necessary medical treatments without having to bear the full financial burden. Health insurance plans can cover a range of healthcare services, including doctor visits, hospital stays, surgeries, medications, and preventive care, depending on the specific plan you choose.

Types Of Health Insurance

Individual Health Insurance

This policy provides medical coverage to a single person. It covers expenses such as hospitalization, surgery, doctor consultations, and prescribed medications. The sum insured is dedicated solely to the insured individual and is based on their age, health history, and coverage needs.

Family Floater Health Insurance

A family floater policy covers all family members under one plan and one sum insured. The total coverage can be used by any member as needed, making it cost-effective for families, especially when not all members require frequent medical attention.

Group Health Insurance

Usually provided by employers, this policy covers a group of people—typically employees of a company. It offers basic health coverage and sometimes includes dependents. While it’s affordable and requires no medical checks, it may offer limited benefits compared to individual plans.

Critical Illness Insurance

This plan provides a lump-sum payout if the insured is diagnosed with a serious illness like cancer, kidney failure, or heart disease. The payout can be used not just for treatment, but also for managing daily expenses, recovery, and income loss.

Senior Citizen Health Insurance

Tailored for individuals over 60 years, these plans address age-related health concerns and usually cover pre-existing illnesses, regular checkups, and treatments. Premiums are higher due to increased risk, and some policies may include co-payments.

Maternity Health Insurance

This plan covers maternity-related expenses, including pre- and post-natal care, delivery (normal or C-section), and newborn baby coverage. It often comes with a waiting period and is ideal for those planning a family in the near future.

Personal Accident Insurance=

This insurance provides coverage in case of accidents leading to death, permanent or partial disability, or injury. It helps manage medical bills and offers compensation based on the severity of the incident.

Disease-Specific Insurance

Focused on particular illnesses such as diabetes, cancer, or heart disease, these policies provide targeted coverage. They are designed to manage long-term treatment costs and may offer benefits like regular screenings and disease management tools.

Who Should Buy a Health Insurance Policy?

Key Terms in Life Insurance

Premium

The amount you pay periodically (monthly, quarterly, or annually) to keep your health insurance policy active.

Sum Insured

The maximum amount the insurer will pay for medical expenses in a policy year; it is the total coverage offered.

Policy Term

The duration for which the health insurance policy is valid and provides coverage, usually one year, renewable annually.

Co-Payment

A fixed percentage of the medical bill that the insured must pay out-of-pocket; the insurer covers the remaining amount.

Network Hospitals

Hospitals tied up with the insurer to offer cashless treatment, where the insurer directly settles the bill with the hospital.

Underwriting

The process of assessing an applicant's risk and determining policy eligibility and premiums.

Cashless Facility

A benefit where policyholders can get treated at network hospitals without paying upfront; the insurer pays the expenses directly.

Waiting Period

The time frame during which certain illnesses, treatments, or pre-existing diseases are not covered under the policy.

Daycare Procedure

Medical procedures or surgeries that don’t require 24-hour hospitalization and are still covered by the insurance.

Restoration Benefit

A feature that restores the full sum insured if it gets exhausted during the policy year due to claims.

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Frequently Asked Questions

What is Health insurance, and how does it work?
Who needs Health insurance?
What types of Health insurance are there?
How much Health insurance coverage do I need?
What is the difference between term and permanent Health insurance?
How are Health insurance premiums determined?
Can I change my Health insurance policy after purchasing it?
Is Health insurance taxable?
Can I have multiple Health insurance policies?