Understand the Basics of Health Insurance

understand the basic of health insurance

Health insurance policy comes for person between ages of five to 80 years. Child between three months to five years is also insured but under the condition which parents should be covered. The mediclaim policy includes hospitalization expenses for diseases, illness and accidental injury during the term period.

Many people don’t have any idea about critical illness cover and hence, don’t know how to use it in a proper way. The critical illness rider is an add-on benefit offered by both life and general insurance.

It insures policyholders in case they are diagnosed with some serious diseases and the requirement for this is because of expenses incurred in the medical treatment of such illnesses are very expensive.

In fact, insurance advisors suggest customers to buy more than one health covers, but in case there is a contribution clause in a plan that mentions if buyers have bought policies from different insurers, all the insurance companies in India will share the payout in the sum assured. Therefore, customers should mention if they already hold a health insurance policy while purchasing other insurance.

Below are some health insurance types:

  • Cashless mediclaim pays to the network hospital directly as and when the policyholder is hospitalized.
  • Under family floater plan, the family is insured under single policy and share the healthcare plan.
  • Group health cover is for people who are bounded by the nature of job and can go for this plan.
  • Individual health insurance is for one person and only policyholders can avail the policy benefits.
  • Critical health insurance offers coverage only for certain diseases which are mentioned in the plan.
  • When policyholder is traveling out of his geographical boundary of the health insurance, then he can opt for travel health insurance.
  • Maternity Insurance is very rare because it is already covered in a health insurance plan. It covers female during the complications of pregnancy and child birth.
  • Senior citizen health insurance is for a person when he or she enters 60 years of age, but it is good to buy this policy as early as possible.
  • Hospitalization coverage only pays for the hospital room rent and does not include any expenses of medical treatments.

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