What is Health Insurance?
In simple terms, when you buy health insurance, you get a financial cover up to a certain amount for the medical expenses you may incur in a year. It covers emergency and planned expenses for hospitalisation, day-care treatments, surgeries, pre and post-hospitalisation, ambulance charges. Hence, a right health insurance policy helps you ward off unnecessary financial burden when a medical situation or emergency arises. Moreover, it also offers tax savings under Section 80D of the Income Tax, 1961 on the premium amount you pay to the insurer.
How Health Insurance Works in India?
Here is how health insurance works in India:
- Coverage in Return of Premiums – A health insurance policy covers your planned and emergency medical expenses in exchange for a regular premium.
- Up to Sum Insured Limit – Your insurance company will cover your healthcare expenses for up to the sum insured limit of the mediclaim policy.
- Coverage Vary with Plan – Medical coverage varies from one health insurance plan to another. For instance, Plan A covers hospitalization and OPD expenses, while Plan B covers only hospitalization expenses.
- Upgrade Coverage with Add-ons – You can upgrade the coverage of your mediclaim policy by buying add-on covers, such as critical illness cover, consumables cover, hospital daily cash, etc., on the payment of additional premiums.
- Waiting Period Applies – An initial waiting period applies to all medical insurance plans, except for accidental injuries. However, pre-existing diseases are covered after a waiting period of up to 3 years.
- Premium is Not the Same for Everyone – Health insurance premiums vary from person to person due to several factors, such as age, medical history, city, sum insured, etc.
- No Coverage for Lapsed Policy – If you do not renew your mediclaim policy on time, your policy will lapse, and you cannot file a claim with your insurance company.
List of Best Health Insurance Plans in India
Check out the list of best health insurance plans in India offered by various insurance companies below:
Benefits of Buying Health Insurance at an Early Age
Here are some of the reasons why you should buy health insurance at an early age:
- Lower Premiums – Insurers charge a lower premium at a younger age, as you are less likely to have an pre-existing disease and file a health insurance claim.
- Easy to Serve Waiting Periods – It is easier to serve the waiting periods at an early age, as you are less prone to falling severely ill, resulting in a claim.
- No Pre-Policy Check-up Required – Most mediclaim policies may require you to undergo a pre-policy medical check-up if you are above 45 years, making you more prone to discovering a medical condition.
What is the Ideal Health Insurance Coverage?
Health insurance coverage should be tailored to individual medical needs and circumstances. An ideal health insurance plan is usually suggested to have a sum insured equal to at least half of your annual income. You must check if it is sufficient to meet your medical expenses.
Experts suggest buying a health cover of at least ₹10 lakhs to combat rising healthcare costs easily.
| Types of Plans |
Ideal Health Insurance Sum Insured |
| Tier-1 City |
Tier-2 City |
Tier-3 City |
| Individual Health Insurance Plan |
₹10 lakh & above |
₹5-10 lakh |
₹5 lakh |
| Family Floater Health Insurance Plan |
₹30 lakh & above |
₹20 lakh & above |
₹10 lakh & above |
| Senior Citizen Health Insurance Plan |
₹20 lakh & above |
₹15 lakh & above |
₹10 lakh & above |
Alternatively, you can also opt for a ₹1 crore health insurance policy that has become extremely affordable these days. A ₹1 crore health policy can come in handy for treating a disease that requires long-term care or for medical procedures taken abroad.
You can easily get a ₹1 crore health cover by paying an extra premium of approximately ₹1500.
You also have a more affordable option of purchasing a base health insurance policy with a low sum insured and buying a top-up cover with a high sum insured.
Current Health Scenario in India
Lifestyle diseases, like hypertension, diabetes, cancer, etc., are growing at an alarming rate in India. This surge is largely driven by poor lifestyle choices, environmental factors and genetics. What is more concerning is that these diseases are now affecting young adults above 30 years - previously seen mostly among people in their 50s and 60s. Unhealthy food habits, lack of exercise and high stress levels are some of the main reasons behind this early onset of lifestyle diseases in the country.
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