How does Health Insurance work?
Health insurance pools in money from the people belonging to the same risk group by way of premiums, and these collected premiums indemnifies or covers whole or part of the risk of a person/s incurring medical expenses in that group.
Health insurance policy will mainly cover hospitalization expenses provided you’re admitted in the hospital for a minimum of 24 hours. Also due to advancement in technology of medical procedures more and more treatments do not require you to be admitted for 24 hours and come under day care procedures, all or most of the day care procedures are now covered under the policy.
The basic medical expenses include pre and post hospitalization expenses, Hospital bed, Room rent, ICU Charges, Nursing fee, Consultant Doctor Fee, Cost of blood, Operation theatre charges, Scans, Procedures, Medications and injections are all covered under the policy. There might be waiting period on the pre existing diseases and maternity benefits or certain diseases that are specified under the policy. Also, non medicals, cosmetic treatments, and other exclusions stated in the policy are excluded from the policy.
Individual Health Insurance Policy:
Individual health insurance policies are those that you purchase for your own medical insurance needs, apart from the medical insurance sponsored by the government or your employer.
These policies are very popular amongst the youngsters and singles. These are the least expensive option to buy health insurance for oneself and also cover an individual during job loss or unemployment, as the cover provided by your employer ceases the moment you stop working for your company.
Family Floater Health Insurance Policy:
As the name suggests this insurance policy cover is for your family, it is a very cost effective product that covers an entire family in one policy. The cover is shared amongst the members and offers flexibility in terms of utilizing the overall insurance coverage among the family as a group.
You can also add or delete the person insured in the policy, If you are covered by your employer , its recommended that you also opt for a family floater policy, as it helps you take care of interim periods between job switches.
How to claim Health Insurance?
You can claim health insurance in 2 ways:
Cashless:
In a cashless insurance policy the insurance company directly pays the admissible claim amount to the network hospitals that are registered with the insurance company. The insured person has to get admitted in these network hospitals to claim the cashless facility, the insured person then has to pay only the charges that are not covered under the policy.
Reimbursement:
In case you get admitted in a non network hospital (Hospitals that are not registered with your insurance company), you will have to make the payments yourself and submit all the original bills along with the claim form to your insurance company for a reimbursement.
Tax Savings!
Besides helping you from possible trauma of bearing the medical expenses, health insurance also helps you to save additional tax U/s 80(D) of Income Tax Act, 1961.
The premiums paid towards health insurance plan are deductible under taxable income. Up to Rs. 25,000/- (For people below 60 years of age) and Rs. 50,000/-(for people above 60 years of age). Let’s look at few scenarios to understand the concept.
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Scenario 1:
If, you are below 60 years and your parents are also below 60 years, you can claim up to Rs. 50,000/- (25,000 + 25000)
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Scenario 2:
If, you are below 60 years of age and your parents are above 60 years, you can claim up to Rs.75,000/- (25,000 + 50,000)
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Scenario 3:
If, you are above 60 years of age and your parents are also above 60 years, you can claim up to Rs.1,00,000/- (50,000 + 50,000)
Note:
You can buy health Insurance of any company from us. Kindly call us to know more.
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