Health Insurance – The Basics

According the survey of ‘OutlookIndia’ says that

A report, Health Insurance – Understanding Consumer Context, published by Max Bupa Health Insurance, a joint venture between India’s Max Group and UK’s Bupa
(a health and care company) shows how health insurance is bought in India and what worries buyers:

• A majority of respondents said their knowledge of health insurance was poor.
• Transparency and trustworthiness are primary qualities sought in a health insurer.
• A majority of participants said the claims process is a key measure of product satisfaction.
• Among insured participants, personal experience and word of mouth are the most important triggers for buying health insurance.
• More than half the buyers sought insurance that covered the entire family.

So understand the basics are must for us to get our health insured. Some of the basics are given below and i will cover all the concept of health insurance in my next articles.

What is health Insurance?

A health insurance policy will provide a cover to you and your family against sudden medical contingency or bodily injury.

Why health insurance?

• Every human being is exposed to various health hazards.
• Medical emergency can strike anyone without pre-warning.
• Inadequate facilities in government hospitals
• Private hospitals are too expensive
• Medicines have become quiet expensive
• Diagnostic charges are beyond common man’s reach
• Specialists come at a price
• Tax benefit under section 80 D of the Income Tax Act

What are the benefits of buying health insurance at a young age?

• Health insurance premium tends to increase with age — more the age, higher the premium.
• You can be covered for medical conditions that may be diagnosed over the years provided there is no break in the policy.
• In addition, each `no claim’ year would fetch you a discount on your premium or an increase in your sum insured amount at no extra cost. The treatment in case of ‘no-claim’ bonus varies from company to company.
• Lastly, income tax benefit under Section 80 D of the Income Tax Act.

How is premium determined?

Premium depends on several factors viz.

• Your age
• Amount of coverage required
• Number of family members covered
• Other additional benefits
• Your health condition
• Your income \ earning

What are the types of Health Insurance?

Group insurance:
Group medical insurance offers insurance cover to a group with a common trait – it may be employees of a company, members of a club or an association or members of a co-operative society etc. Many employers now provide medical insurance as a perquisite to their employees.

Individual insurance:
Individual insurance caters to the specific needs of an individual. Premium for an individual insurance is higher than group insurance.

Floater:
A floater is a unique plan wherein the value of sum insured opted can be used by all the members of the family or by a single-family member. Basically, the sum insured amount floats over all the members covered. For example: if the policy is bought for 3 lacs, then either all three members of the family can use Rs 1 lac each or one member can use the entire cover of 3 lacs.

Top Health Insurance companies in India

• ICICI Lombard Insurance
• Star Health Insurance

See Also: 12 things you must know before buy a health insurance

The basics of health insurance are must for those who are going to get their first health insurance or who are planning to get health insurance. I am sure you have got the idea from the above guidelines of health insurance. I will cover all aspect of health insurance in my next articles like how to get claim? How to get cheap insurance plan in India? and even more. If you have questions or comment just ask.

Related posts:

1. 12 Things You Must Know Before Buy Health Insurance
2. Deduction u/s 80D Mediclaim (Medical Insurance Premia)
3. Insure Your Health And Save Tax Too!
4. Service Tax on Health Check and Treatment Withdrawn
5. All You Want to Know About Life Insurance