All you want to know about Health Insurance

All you want to know about Health Insurance
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Hello Folks , this article will discuss about all the facts you want to know about health insurance .

What is Health Insurance?

Health insurance is an insurance product that covers medical expenses incurred by an individual.It is an agreement between the insurer and the individual or group of people in which the insurer agrees to provide sufficient health coverage at a premium to the individual or group of people.

       All you want to know about Health Insurance

Why is Health Insurance important?

With the cost of medical expenses and hospitalisation skyrocketing, it has become important to get covered under Health Hnsurance.

It helps in meeting the sudden expenses of emergency hospitalization of self or any member of the family.

It protects from sudden, unexpected costs of hospitalization or other covered health events like critical illnesses, which otherwise may dent the household savings even leading to indebtedness.

Medical emergency can strike anyone without prior warning and with healthcare becoming increasingly expensive, it is very important to opt for medical coverage and buy policies which will cover the entire family too.

Sometimes high treatment expenses may be beyond the reach of many, so opting for Health Insurance is the best thing to do.

What are the different forms of Health Insurance available in India?

Basic Health Insurance is available for hospitalisation in India.

Due to liberalisation the insurance sector opened for private players and with increase in competition in the sector, a variety of products have been launched which offers range of services for individuals, families, group of people and senior citizens.

Health Insurance works in two ways in India: One is the cashless facility and the other is the reimbursement facility.

In the cashless facility, the entire bill is taken care of by the insurer at the time of hospitalization while in the reimbursed facility, the medical bills are to be taken care of by the individual first and the money is later reimbursed to the policy holder by the insurer after proper submission of bills and other documents.

       All you want to know about Health Insurance

What is cashless facility?

This facility is only available at the network hospitals mentioned in the list provided by your insurance company.

Insurance companies tie up with hospitals in different parts of the country and form a network of such hospitals which offer cashless hospitalisation benefits to the policy holder.

In case of emergency hospitalisation or planned hospitalisation, the policy holder has to approach one of the network hospitals.

At the time of hospitalisation, the policy holder is required to fill up pre-authorisation form for availing this facility and this form is submitted to the Third Party Administrator (TPA) as appointed by the insurance provider.

Once the TPA approves the form, the patient becomes eligible for availing the cashless facility.

Cashless facility cannot be availed at hospitals which are not part of the network of hospitals.

What kind of Health Insurance plans are available?

Health Insurance plans are available from a meagre Rs 5,000 to Rs 50 lakh (Rs 5 million) or more in certain critical illness plans in India.

On an average most providers offer health coverage plans between Rs 1 lakh to Rs 5 lakh as the sum insured.

The individual can buy plans for self or for the entire family which is termed ‘Family Floater plan’ wherein all the family members can avail mediclaim to the extent of sum insured.

The premium for a ‘Family Floater plan’ is high compared to individual plans.

Most insurance companies offer health insurance policies for the duration of one year, but there are policies which are issued for more than a year too. There are some plans which extend for a longer duration.

What is a ‘Family Floater’ insurance policy?

A family plan is one single policy that covers all the members of a particular family. It takes care of the family members’ hospitalisation expenses.

The policy has one single sum insured, and one single premium is paid for the policy.

The advantage of having a ‘Family Floater’ policy is that all members of the family are covered and there is no need to buy individual policies for each member of the family and there is no need to pay different amount of premiums for different policies.

A ‘Family Floater plan’ takes care of all the medical expenses during sudden illness, surgeries and accidents.

What does a health policy cover?

A health policy covers pre- and post-hospitalisation expenses.

In addition to hospitalisation, some specific policies offer number of additional benefits like maternity and newborn coverage, day care procedures for specific procedures, pre- and post-hospitalisation care, and other benefits.

A critical illness plan provides a fixed amount to the insured in case of diagnosis of a specified illness or on undergoing a specified procedure.

   All you want to know about Health Insurance

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