An overview of health policies

An overview of health policies

August 16, 2019 3:31 pm,

Health Policies? Is there a need? Let’s explore.

Are you concerned about skyrocketing medical expenses? Increase in different illnesses starting from life-style related illness to other rarer illness is making you worry about you and your family’s health expenses?

We all aware that Medical emergencies come as a surprise. We try very hard to maintain good health, but We know very little when it comes to health policies. Not any more! This article let you know the complete details of health policies in a simple way.  

Let us understand health Policies in detail.

Why do I need health insurance?

We all are aware of the fact that medical expenses are the most unexpected expenses. Imagine someone who undergoes a major surgery and who has no health insurance. Who will pay the huge medical bills? If the same person had taken health insurance, then it would have been a  smooth ride. Isn’t it or not? This is where health insurance plays a major role.

Health Insurance is a must for every individual and it should not be considered as wasteful expenditure. When it comes to investment, health insurance and term insurance is a must to safeguard our family’s future.

Is Health insurance affordable?

Health insurance is very much affordable and can be a great support in the time of crisis on the health front.

Having understood the need for health insurance, let us see the Health Policy details.

All most all Insurance companies offer a varied range of health Insurance policies. In this article, we have taken one such policy from HDFClife “ HDFCLife Easy Health Plan”

Why do I need this plan?

  • Health costs have been growing faster in the last decade.
  • This policy provides high cover at an affordable price.
  • Get protected from well-defined benefits.

Critical illness insurance provides a lump-sum payment in case the policyholder is diagnosed with health-related conditions of a serious nature like Heart attack, cancer, Paralysis, Major organ transplant etc.

Let us see how this plan works.

This is just an example. We have calculated the benefits for a person aged about 36 years old.

Sum assured: 5 lakhs

The total premium you need to pay for 5 lakhs sum assured would be= 73,486

Plan option: Includes all  3 benefit options shown below

You can buy this plan with 3 benefit options:

  • Daily hospital cash benefit
  • Surgical benefit
  • Critical illness benefit

Policy Term: 5 years

Premium frequency: Single or one-time payment

Premium paying term: 1 year

Age: 36

So, in the above example, a person aged 36 years can get all the 3 benefits by just paying a premium amount of 73,486. The policy term is for 5 years. So, in case of any medical emergency during the policy period, you can avail the benefits listed above.

Let us know more about health insurance policies.

The health insurance plans are for an individual plan or for a group plan.

  • Individual plan – this is for an individual or family and has the plan that can be customized to the individual needs.
  • Group plan – this is for a group of people, typically through an employer where the plan is provided as per the needs of a larger group.

Most of the insurance providers cover treatment both under:

  • Domiciliary treatment: Covers for a minor illness treated as an out-patient
  • Hospitalization treatment: Covers for an illness that requires hospitalization for treatment

Health insurance plans have several benefits that they provide. Some of them are:

  • Easy and cashless hospitalization: This provides the facility where the insured can avail hospitalization for treatment by merely providing the policy details to the affiliated hospitals without having to pay anything.
  • Cash Claim option: In the event that there are no affiliated hospitals in a specific region, the insurance provider also provides the option of paying for the treatment first and claiming the same.
  • Flexibility in choosing the type of treatment: The insurance providers also provide coverage for treatment under different alternative treatment systems, such as Ayurveda, Unani, Naturopathy and Yoga.
  • Coverage for critical illness – Here, the insurer provides an option with specific riders for critical illness. So, this could include treatment for cancer, stroke, transplant needs for kidney failure, liver failure and similar life-threatening diseases.

Tax Benefits

  • Tax Benefit – Health insurance also provides tax benefit under section 80D of the Income Tax act. The benefit is given to the extent of Rs. 25,000 for self, spouse, dependent children and parents or parents-in-law on the taxable income.  For super senior citizens, the tax benefit is to the extent of Rs. 30,000.

There is a famous saying “Health is Wealth” that refers to the importance of health! So, health is the greatest wealth in this world. But the cost of medication and treatment has been going sky high. Hence, the only respites that anyone can manage the treatment of such situations are by having adequate coverage in the form of health insurance. Health insurance is a must for every individual and family to stay safe.

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