Life is unpredictable and you should be ready for everything. Do not leave anything to chance. A comprehensive health insurance policy can protect your family and finances by bearing your medical costs.
What is health insurance?
Health insurance is designed to cover the insured person’s medical costs in the case of hospitalization and/or critical illnesses.
Why do you need health insurance?
Escalating medical costs and a high rate of medical inflation have made health insurance a necessity in India. The rate of medical inflation in India is 15%. Yet, the quality of government-funded healthcare in India is abysmal. And if it’s a medical emergency, arranging funds overnight can be a tall task. Health insurance provides a way out. But the onus is on you to take out health insurance on time. A comprehensive health insurance plan gives you access to top-quality healthcare. Besides, you will have peace of mind knowing that someone will take care of your medical bills when you are ill. Moreover, you enjoy financial security as well as tax benefits. Many health insurance policies even give added benefits. These include free doctors’ consultations, free preventive health check-ups, and the like.
What kind of health insurance plans should you invest in?
There are two types of medical insurance policies: indemnity and benefit.
Indemnity health insurance: Indemnity plans cover your hospitalization costs. These plans reimburse your hospitalization costs up to the sum-insured amount you choose when you take the policy. Suppose you have a hospitalization bill of Rs 2 lakh and your sum insured is Rs 4 lakh. The insurance company will pay you Rs. 2 lakh. The rest will remain for future claims. If you are admitted to a hospital that is part of the insurer’s network, you will have to pay nothing out of your pocket. You can enjoy cashless hospitalization.
Benefit health insurance: A benefit health insurance plan can cover expenses that the indemnity health plan does not. Benefit health insurance policies pay the insured individual a lump sum if they are diagnosed with a disease covered under the plan. A common type is the critical illness plan. Aegon Life, for instance, has a critical illness plan called the iCancer Plan.
A critical illness like cancer has a debilitating effect on your physical and mental health as well as your finances. With the right health insurance plan, such as iCancer Plan, allow your finances to be one less thing to worry about. This plan covers the costs of medical treatment if, you are diagnosed with cancer.
- Coverage for different types of cancer: This plan covers a wide array of cancers. So, you may be covered even if your cancer is not a very common type.
- Flexibility in premium payment: You can pay the premiums on a monthly or annual basis, according to your convenience.
- Buy it online: You may not be in the frame of mind to meet an insurance agent. This plan has you covered in that respect as well. It is an online plan. So, you can buy it from the comfort of your home.
- Premium waiver: Once the insurer approves a claim for a major stage of cancer, you pay no premium.
- Lump-sum payout at any stage of cancer: The insurer will pay you a lump sum depending on the stage of cancer. The benefit increases to match the rising expenses when the severity goes up. Here are the details:
- Receive 25% of sum assured if diagnosed with minor-stage cancer
- Receive 100% of sum assured if diagnosed with major-stage cancer
- Receive 150% of sum assured if diagnosed with critical-stage cancer
- Tax benefit: You can claim tax benefits on the premiums under Section 80D of the Income Tax Act.