Whether its a life and health insurance policy or insurance for your house, an old car you want to insure or a new car. These days there are few avenues on the web space where you can go and make yourself familiar with the health insurance. You can buy a money back policy, whole life policy, Unit linked plan (ULIP) or term insurance depending upon your need of the hour.
It must be noted that most people in India has not warmed up with the idea of health insurance. Most people have heard about it and some of them vaguely know it as well. So what is Health insurance?
Health insurance is an insurance to mitigate the risk of sustaining medical expenses. The insurance company estimates the entire risk of expenses which may be incurred on health care, on the basis of such data; the insurer designs his finance structure around it. This structure is translated in monetary terms, as we know them as, payroll tax or monthly premiums. The premiums are deposited in the pool of the insurance company to make sure that there are enough funds to pay for all the benefits which have been agreed upon and specified in the insurance policy.
There are various types of
health insurance plans available today such as workers compensation, family floater, individual plans, and group health plan. These types of insurance means that you and your family are always covered for medical expenses that might occur within the policy period. The expenses are paid by the insurance company on the condition that your prescribed premiums are paid on time.
Many of the health insurance providers these days extend the cover to pre and post-hospitalization for 30 days and 60 days respectively. The major benefit of buying a health insurance policy is the cost of medicine, doctor fees and expenses pertaining to hospitalization are paid for by the insurance company. Double digit inflation coupled with ever-rising cost of medical expenses has become cause of major concern for ordinary urban folks reeling under post-recession. Safeguarding oneself along with the family, from the colossal burden of medical treatment has been a major draw towards such insurance products.
The dual benefit of mitigating risk along with tax exemptions has provided the people with added incentive to buy such policies. While filing for income tax returns, up to Rs 15,000 is exempted, if paid by way of premiums on
health insurance policy. Just like in the case of any normal
life insurance, the premium on the policy is directly proportional to the increase in the age of the insured. The younger the insured, the lesser will be the premium. Expenses are even paid when the insured is been treated at his home or if they are not in the condition to be moved to a medical facility, this is known as Domiciliary hospitalization.
