Health Insurance Guide For Beginners

About Health Insurance Guide to Beginners

Buying health insurance can sometimes be quite a difficult task. Given the number of insurance companies and policies that are available in the market today, it has become increasingly tough to pick the right one. However, knowing what plan you want based on your needs makes it easier for you to buy a health policy.

In this article, we will tell you everything you need to know about health policies. Whether you’re someone buying a policy for the first time or looking to renew your plan, here’s an elaborate health insurance guide to help you understand all about it.

Why Do You Need Health Insurance?

Health insurance is critical in today’s time especially due to our sedentary and fast-paced lifestyle, improper diet, and pollution increasing at an alarming rate. With rising healthcare costs, you wouldn’t want your medical expenses to burn through your savings.

Thus, it is essential to opt for health insurance at an early age so as to enjoy affordable premiums and early completion of waiting periods. Some of the reasons that make health insurance a must-have are:

• Health plans help you avail the cashless facility during times such as medical emergencies, sudden hospitalisation, etc.

• Enables you to protect your hard-earned savings from soaring medical costs

• Allows you to put your health first and get the best treatment with insurance

Inclusions of Health Insurance Plans

You can go through the below pointers to understand the aspects covered under health insurance:

• Pre and post-hospitalisation expenses

• In-patient hospitalisation

• Daycare treatment

• Alternative treatment such as AYUSH

• Ambulance cover

• Organ donor cover

• Sum insured restoration benefit

Exclusions of Health Insurance Plans

The below-mentioned factors aren’t covered by your insurance provider:

• Cosmetic treatment

• OPD expenses unless the policy includes Out-Patient Treatment

• HIV/AIDS

• Self-inflicted injuries

• Any health-related ailments in the first 30 to 90 days of policy inception

• Pre-existing diseases

Basic Health Insurance Terms That You Must Know

Let’s understand some common health insurance terms that you should know while opting for a plan:

• Premium Amount

It is the amount of money you need to pay to purchase a health insurance policy. Every year, you also need to pay the premium amount to renew the plan and continue the coverage.

• Out-of-Pocket Expenses

These are expenses that are not covered under your health insurance policy. Therefore, you need to bear the cost from your own pocket.

• Deductible

It is the amount that you need to pay for health care services before your health insurance company starts covering the cost. For example, consider that the medical expenses to be paid are ₹2,500 and your deductible is ₹500. So, you must pay ₹500 from your own pocket before your insurance company pays the balance amount of ₹2,000.

• Copay

Copay is the fixed and predetermined amount that you pay to avail health care services under your policy.

• Network Hospital

Insurance providers tie up with numerous hospitals across the country to offer cashless facility to policyholders. This chain of hospitals associated with the insurer is called a network hospital.

• Waiting Period

The waiting period in health insurance is a duration during which you cannot claim the benefits of your policy. This period can differ from one insurer to another.

• Pre-Existing Disease

Any ailment that you have before purchasing health insurance is termed as a pre-existing disease. Coverage for such illnesses usually come with a waiting period of 3 to 4 years depending on the insurer and the ailment.

• Sub-Limits

Health insurance plans come with a sub-limit that outlines the amount the insurer shall pay for certain treatments. Thus, it is essential to check if your policy has any such sub-limits or terms and conditions.

Types of Health Insurance Policies

There are broadly two types of health insurance plans available, indemnity and defined benefit plans.

1. Indemnity Plan

Indemnity insurance plans are health policies that pay for hospitalisation expenses of the policyholder up to the sum insured. Some common types of plans are:

• Individual health plan

• Family floater plan

• Senior citizen health insurance

• Unit-Linked Health Plan

• Mediclaim

2. Definite Benefit Plan

Such plans provide coverage to the policyholder for a pre-determined benefit. Definite benefit plans include:

• Hospital daily cash benefit

• Critical illness plan

• Personal accident plan

   

  Read More: Difference Between Copay, Deductible and Coinsurance

Bottom Line

With this, you must now be aware of everything there is to health insurance which will help you pick the right plan. If you find yourself confused about which policy to opt for, make sure to talk to an insurance agent to clarify your doubts.

It’s also crucial to understand the inclusions, exclusions, terms and conditions mentioned in your policy. You can choose to buy a health insurance plan online once you’ve got all your queries answered and clarified. To get the best health insurance policy, head over to Finserv MARKETS now and browse through our plans.

Best Health Insurance Plans Available at Finserv MARKETS