Planning to buy health insurance? Learn more about various types of health insurance & how to select the right coverage
Bajaj Allianz General Insurance
Health insurance should be an integral part of the very foundation of your financial planning -- the importance of this core principle has never been as evident as it has become over the last one year. It all started with a small virus of less than 140 nanometers[1] which wreaked havoc across the entire world infecting almost 110 million people and killing almost 2.5 million of them until recently[2]. Only in India, the COVID-19 virus infected almost 11 million people[3], second only to the US.
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Millions of people had to be hospitalised, isolated from their loved ones. The trauma of segregation was made worse by the huge cost of treatment, averaging around Rs 3-3.5 lakh for 14-day hospitalisation[4]. Of those who were hospitalised, less than four per cent had insurance, which meant that for the other 96 per cent the huge treatment cost had to be paid from their pockets[5]. Such a sudden expense is certainly a setback for most people. There is no doubt that the Coronavirus pandemic has brought about a realisation that a backup plan is of utmost importance and having health insurance is the very first step in that direction.
Why is health insurance important?
Health insurance plans with sufficient cover could be an answer to all kinds of unforeseen medical emergencies, not only in times of the Coronavirus, but also in general. Medical emergencies, by their very nature, are unpredictable and they could strike at any stage of your life. While you cannot predict how and when they would enter your lives, what you can do is prepare yourself by having a plan in place to ensure that your other goals are not compromised.
This is where a health insurance policy comes in. It provides you security by ensuring that you get the best medical care without any strain on your finances. It covers hospitalization expenses, day care procedures, domiciliary expenses, and ambulance charges, among others. Not only that, many such policies have the option of covering your entire family against medical emergencies and protecting them against critical illnesses as well. Moreover, health insurance also comes with tax benefits as the premium paid up to Rs 25,000 for buying health insurance for oneself and the family is exempt from income tax. For senior citizen parents, it can go up Rs 50,000.
Health insurance types
If the various benefits of having health insurance have convinced you to go for it, you must know what are the various types of health insurance plans that are available in the market and which one is right for you. Let’s find out!
Individual cover: An individual health insurance policy, as the name suggests, protects a single individual against medical emergencies. These plans are ideal for young professionals who are unmarried and are in their 20s. Since at this age, they would have lower health risks, they would have the advantage of locking in a big health cover at a small premium.
Family-floater plan: As opposed to an individual cover that protects a single person, a family-floater plan covers the expenses of the entire family which may arise due to any medical emergency. So effectively, you pay a single premium for a single policy, but get coverage for your whole family. Of course, the premium is higher than the individual cover of a single person, but much lower compared to a situation where you buy an individual plan for each family member. The sum assured under the plan can be used by any family member who needs it due to a medical emergency.
Critical illness cover: The two health insurance plans discussed so far cover the hospital expenses and pre-and-post-hospitalisation expenses wherever applicable. However, they do not compensate for the lost income one may incur due to a health emergency. A critical illness insurance, on the other hand, covers the policyholder against stated life-threatening diseases like cancer, stroke and heart-related ailments, and provides a lump-sum payment when one is diagnosed by any such ailment. This amount can pay for healthcare costs not covered by traditional health insurance, or can even be used for other purposes as the policyholder may deem fit. The most important factor that distinguishes this plan is that unlike an individual or a family floater plan where you get the claim based on your hospital bills, and that too subject to the restrictions and conditions of your medical policy, a critical illness plan pays you the entire sum assured irrespective of your medical expenses.
A critical illness cover is ideal for those with a family history of critical illnesses and those who are sole breadwinners of the family. It can be bought as a standalone policy or even as an add-on with your regular health insurance plan.
Top-up policy: A top-up policy provides you with additional protection beyond your individual or family health insurance policy. With rising costs of medical care, you may find yourself in a situation where you feel your main health insurance policy coverage may no longer be enough. In such a case, you can buy a top-up policy. While your main health policy would cover you until you exhaust your sum insured, the top-up cover would come into effect when you exceed that limit.
A top-up cover can also be bought as a standalone policy or as a rider. It is ideal for those who get some kind of health insurance cover from their employer, which is usually inadequate. This policy also makes sense for those who bought their health insurance policy a few years back, and which are no longer enough to cover the increase in medical costs due to inflation.
Where to get your health insurance?
No matter which type of health insurance policy you decide to buy, it is important that you choose an insurer which is reliable and has a good record of settling claims quickly and with ease. Bajaj Allianz General Insurance is a sound option that offers health insurance solutions of all kinds. Health Guard policy by Bajaj Allianz is one such one-stop solution that offers health insurance for your whole family along with maternity cover benefit as well as newborn baby health insurance. The company also offers individual plans to suit different needs including Ayurvedic and Homeopathic treatment, day care procedures charges, bariatric surgery, pre and post hospitalization charges, organ donor expenses and ambulance expenses. You could also customise these plans with different riders including those to cover critical illnesses.
Irrespective of which stage of life you are at, a health insurance plan can be the perfect companion for you in this journey. If you don’t have a health insurance policy, get yourself insured today, and live a safe and secure life without worrying about tomorrow. If you already have one, take stock of the situation and ensure that the coverage you have is adequate. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
Source:
[1] https://www.sciencedirect.com/topics/medicine-and-dentistry/coronaviridae
[2] https://www.worldometers.info/coronavirus/
[3] https://www.worldometers.info/coronavirus/country/india/
[4] https://www.hindustantimes.com/india-news/what-does-it-cost-to-treat-a-coronavirus-patient-here-s-a-break-up/story-qwOzwoaJKj39AAxb2U58oO.html
[5] https://timesofindia.indiatimes.com/business/india-business/less-than-4-of-covid-19-patients-in-india-have-insurance/articleshow/76195688.cms
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