What is health Insurance?
Health Insurance (popularly known as Medi-claim Policy) offers protection from unexpected
medical emergencies, providing a financial support. Health Insurance therefore,
can be a source of support as it takes care of the financial burden your family
may have to go through. It will help you tackle such situations with ease by providing
you with timely and adequate medical care. This policy covers the individual & ones
family from medical expenses during sudden illness, surgeries (acquired in respect
of any disease, which has arisen during the policy period.), accidents including
room charges, doctor's fees, medicines, tests etc. that may arise in future. You
could save on your Health Insurance Premium by comparing plans offered by different
What is the importance of Health Insurance?
A health insurance is a protection for your health in which you make a certain amount
of payment to the health insurance company and in return, the health insurance company
provides you an assurance to reimburse the medical expenses incurred by you on certain
categories of ailments. The extent of health insurance coverage also includes the
protection against hospitalization requirement resulting from an accident causing
severe injury. This protection provided by a health insurance company is in the
form of reimbursement of the expenses incurred by you under specified situations.
Here, the health insurance company which provides the health insurance is known
as the insurer, the amount paid to the insurer is called the premium and the individual
who pays the premium is known as the policy holder or the insured., Since you can
now compare the product features, benefits and prices of policies from different
companies on a single platform, it will enable you to know the perfect plan which
would best suits your needs. Moreover, buying a policy online can save you a lot
of time and money.
Tax benefits of Health Insurance
Buying an insurance policy not only provides you a secured future but also saves
you a good amount of taxes. The tax benefits of an insurance policy are even acknowledged
by the Indian government and therefore, in order to promote insurance, the government
provides tax rebate to the policyholders. All medical insurance policies are entitled
for the Income Tax Exemption under section 80D.
Buy Health Insurance at an Early Age to avail Maximum Benefits
As we all know that healthcare costs have been on a continuous high, it becomes
increasingly important for one to get a Health Insurance at an early age itself.
Gone are the days when people used to buy insurance policies just to save on taxes,
rather nowadays, with all the information and insurance policies itself being readily
available, clients have now realized that it is an absolute necessity to insure
their health. policy.
Please tell me, how often can I switch my health insurance companies?
Generally, it isn't advisable to frequently switch the insurance companies, but
still, you can do this as many times you want.
How much money a person should spend in the health insurance?
Well, that varies in accordance to your financial position and resources available
with you. Some people decide considering their budget, however, if money is not
a constraint for you then contemplate your requirements and spend accordingly.
Is there any similarity between the health insurance and the life insurance?
No, both the insurances are completely different from each other. Both of them are
based on different policies and are coupled with different consequences.
What actually happens when a claim is filed by an insured?
The amount of the coverage is reduced from the amount that has been claimed by you.
The sum assured written on your policy is actually the total sum payable during
What all documents you require to buy a health insurance?
Universally, it depends on the company what all they want from you. Though, following
documents you do require while applying for a health insurance policy:- i.) Personal
form of the insurance company is to be dully filled by you. ii.) Medical Examination
is required is you are above the specified age group iii.) Photographs of the applicant
iv.) Photo ID proofs of the applicant v.) A cheque by the proposer
How many claims are allowed in a year?
Factually, there is no limit as such.
Do I get tax exemption on my health insurance premium?
All medical insurance policies are eligible for the Income Tax Exemption under section
80D. The general exemption available to each taxpayer is Rs.15,000 for self, spouse
and children. An additional exemption for parents is Rs. 15,000. In case of a senior
citizen, one can claim an additional exemption of Rs.5,000 on top of it.
What is the minimum and maximum duration of a policy?
Most of the companies offer 1 year as minimum duration. However, some insurance
entities also offer 2 years (minimum duration) as well.
In case if I have to renew my policy for the second year, do I have to pay the premium
Yes, you are bound to pay the premium every year because the policy is issued on
the per year basis. If you take policies for 2 years, they also issue health insurance
policies for 2 years.
Will the agents help us in settling the claims in the future?
Certainly, an agent will assist you throughout the process of claim settlement;
however, you need to take the final call and decide whether you want to get it from
an authorized agent or directly from the company. Remember, an agent's predominant
earning is coming from the company and he might be getting a tad of commission from
you but still he will always support his company. Theoretically, an agent is intended
to fully assist you in the claim settlement process but eventually, it all depends
on the time the claim takes to be lodged. So don't get underestimated, believe on
your agent. Those who crave for a wider choice can also approach an Insurance Brokerage
Is it possible for me to buy more than one Health Insurance Policy?
Yes, you are entitled to buy more than two insurance policies. Still, you have to
keep it in mind that the claim shouldn't be duplicated to both the companies. Usually,
the amount is shared by both the companies in the ratio in which the sum is insured.
For instance, if the Company "X" have insured you for Rs. 5 lakh and the Company
"Y" did the same for Rs. 7 lakh, then the ratio will be 5: 7. Let us suppose that
you are insured by Company "X" for Rs. 5 lakh and Company "Y" have insured you under
a Top-Up policy for Rs. 7 lakh. In this case, you will first receive the initial
amount of Rs. 5 lakh from the Company "X" and rest of the amount will be paid by
the Company "Y." Generally, top up policies are less expensive than the normal policies.
However, for better advice you can always contact an Insurance Brokerage Firm.
Will it be fine if I opt for the home treatment and get it reimbursed under the
It is feasible under special conditions. If there is an epidemic and no beds are
available in the hospitals. In the technical language, this type of treatment is
known as domiciliary treatment.
Who is supposed to be receiving the claim amount if the insured person dies during
Nominee will receive the entire claim amount after the death of the policyholder.
I'm a disabled person. What are the options available for my health coverage?
Well, it completely depends on the kind of disability you have. Suppose, if you
have poor eyesight and you fall ill because of other the diseases, the company might
consider your eye-disease as a pre-existing disease and may not cover this, however,
it will cover the other ailments and other accidental happenings.
There is a possibility; I might be laid off soon. So it will be better if I see
my doctor before my policy lapse?
Well, you need to consult an insurance broker, not a doctor. You might have to purchase
a new health insurance policy before you leave your company. This will be beneficial
for you because the day you will say good bye to your current employer, the cooling
off period of your policy will also be over.