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Tuesday 16 April 2013

What is Health Insurance?


Health Insurance, often known as medical insurance is a form of insurance which provides coverage for the expenses incurred on medical therapy and hospitalization  It covers the individual and family against any financial constraints due to medical emergencies. In case there is sudden hospitalization or accident, medical insurance covers the price on medicines, oxygen, ambulance, blood, hospital room, various tests and almost all other costs involved. 
Thus, by insuring health, he helps to ensure that if he pays an accumulation health insurance premium every year with regards to the person age, then till a particular limit of medical expenses, he/ she would be taught in insurer and won't ought to wait from his very own pocket.

Basically, since medical expenses are increasing yearly, it is a hardship on a person to suddenly pay about Rs. 2,00,000 to Rs. 3,00,000 towards medical emergencies. Since medical emergencies can't be postponed or neglected, this unforeseen expense becomes inevitable if medical insurance is not availed. Thus if you are paying a nominal amount of premium of say Rs. 1,200 per annum, a 35 year old man can get covered till Rs. 1,00,000 of medical expenses each year. Thus, a rapid expense of Rs. 1,00,000 might seem extremely high for that individual however a nominal volume of Rs. 1,200 per annum, i.e. Rs. 100 each month may appear to be an affordable cost. This amount however, needs to be paid annually otherwise the top's ceases to exist.

Benefits of a Health Insurance

Family Floater Policies: Most health insurance plans supply the flexibility of hiding to 4 loved ones within the same plan using a slightly higher premium than somebody medical insurance policy. It offers the flexibility of choosing say four or five lakhs of cover for the complete family. If someone member in the household is hospitalized and uses about Rs. 2 lakhs for his treatment, then a rest 3 lakhs can be availed by others. It is rather unlikely which more than a few members would require hospitalisation within the same year. Which means the family floater serves the point whoever in the household falls ill.

Hospitalisation Cash Benefits: This benefit entitles the client to cash benefits for each completed day's hospitalisation, that helps him to deal with the raised financial burden incurred during the time of hospitalisation, including decrease of earnings away from work and also other expenses.

Cashless facility: You will find there's network of hospitals involved in each insurance provider which accepts the insured 2019s medical identity card (from the insurance company) for providing cashless facility for the insured. Hence either part or entire expenses are covered by the protection along with the individual doesnt must spend from his pocket.

Pre-hospitalisation and Post-hospitalisation benefits Some mediclaim policies provide for approximately 60 to 90 days of pre-hospitalisation and post-hospitalisation benefits, i.e. the price of lab tests, medicines, scans, etc. It's usually provided under maternity benefits and coverings that do not require hospitalisation.

Ambulance Charges Generally the ambulance charges are taken up with the policy and the covered person usually need to bear the burden the exact same.

Health examination Some medical health insurance policies have a very facility of free health check-up to the wellness of the people when there is no claim.

Cover for Pre-existing Diseases Some medical insurance policies possess a facility of covering pre-existing diseases after a few numerous years of continuously renewing a policy, i.e. if a person has diabetes, then after finishing three to four numerous years of continuous renewal with similar insurer (with respect to the plan offered and the age), any hospitalisation on account of diabetes may also be covered.

No-Claim Bonus Some medical insurance policies provide a no-claim bonus. If there has been no claim in the previous year, i.e. in the event the person covered have not availed any hospitalisation benefit, then this bonus is declared either by reduction of the premium or by improving the sum assured by a number in the existing premium.

Tax Advantages of choosing a Medical Health Insurance Policy Under Section 80D in the Taxation Act, taxation benefit emerges to the customer for your premium amount till at the most Rs. 15,000 for normal and Rs. 20,000 for senior-citizen respectively.

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