A Complete Guide to Buying Health Insurance Policy in India


Health care can be financially draining, whether for yourself or for the family who depend on it. With the additional inflation margins that persist in drug and hospital costs alongside the increase in various lifestyle-related illnesses; you have to find the best health insurance policy and its ideal version of a health insurance plan that can mitigate the possibilities of having to forgo treatment due to high costs or to pay with future savings.

A health insurance policy is an insurance instrument that covers medical costs incurred during prolonged hospitalization, as well as post-discharge costs. Health insurance in India is a general policy which has many variations[1] offered by insurers according to age groups and family structure. You can choose between an individual health plan, a family plan, senior citizen coverage, with customizable endorsements and additional options such as covid coverage and more.

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Regular health check-ups and regular medical consultations should be a recurring activity in everyone’s life. It is necessary to have clarity about one’s health, and for this purpose a solid health insurance can be a good support in case of medical expenses which can be financially stressful for the person.

Finding the best health insurance policy that covers and completely covers all foreseeable situations is a policy that can be filled with trial and error. Therefore, there are some things that one knows before buying health insurance plans.

There are mainly two types of health insurance in India:

  1. Compensation schemes: These types of plans typically include health insurance, individual coverage, family floating plans, senior citizen coverage, and unit related health plans. They are accompanied by the insurance of coverage of hospital costs and an insured sum.
  2. Defined benefit plan: These plans are intended for situations where the insured requests a lump sum indemnity from the supplier in the event of an accident or diagnosis of illness. Critical illness insurance plans, personal accident plans and hospital indemnity plans fall under defined benefit plans.

The importance of choosing a health insurance policy is well established for most people, but there are some additional benefits to being insured. Let’s look at the benefits of health insurance in India:

  1. Blanket:

A health insurance policy can provide comprehensive, end-to-end coverage against hospital costs, ambulance costs, including pre and post-operative care. Depending on the needs of the policyholder, he may claim an insured sum in the event that his income becomes irregular in the event of an accident of the policyholder.

  1. Fiscal advantages:

The premiums paid for a term insurance plan and the sum of payment thus received from it at the time of maturity are exempt from tax under sections 80C and 10 (10D) of the Income Tax Act. 1961 income.

For health insurance in India, the premiums paid are deductible from the net taxable income earned by the policyholder in accordance with Section 80D of the Income Tax Act 1961.

  1. Flexibility:

The best health insurance policy can be expected to provide enough room for an insured to tailor their plan to suit their circumstances, such as reduced premiums after a specified period or extended tenure to qualify for benefits. ‘insurance until retirement and beyond.

  1. Sum insured:

The sum insured under a health insurance policy is capped at Rs 6 crore per year. The lump sum provides financially sound and extensive coverage for the policyholder.

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  1. Critical illness:

One of the most important features of a health insurance policy is its critical illness benefit which covers over 30 serious illnesses such as cancer, kidney disease, stroke and more.

  1. Complaints:

For health insurance plans, one can avail claims according to their reason. For standard claims, coverage may be provided until their sum insured is not exhausted. For situations such as disability or critical illness, the policyholder may receive cancer insurance benefits or a lump sum payment from the insurance provider. Please note that claims made for the above reasons are one-time payments only.

  1. Additions:

Additional critical illness, maternity, accident and accidental disability riders can be added to an existing health insurance policy.

Before opting for health insurance in India, one should be aware of the following things and features to consider before purchasing:

  1. Complaints process:

Before investing in an insurance policy, one should independently review the credentials of various insurance providers regarding their track record and the timeliness of claims payment. From a mix, choose the plan and the provider who have a straightforward complaints process and good customer service.

  1. Adequate coverage:The payments or reimbursements that an insured may receive from insurers should be sufficient to cover costly treatments and even aftercare for the insured. Hence, one should opt for plans that have a minimum sum of 10 insured lakes, as medical expenses have inflation margins which increase exponentially.
  2. Hospitals:When focusing on a health insurance policy, one should opt for an insurance provider that has a solid list of reputable hospitals in their policy list.
  3. Pre / post hospital costs:Select a policy that provides extensive coverage not only for hospitalizations, but also for tests, medical consultations and medications.

The process of choosing a font can be a tedious and difficult process, but with the abundance of options and customizations available today, one can streamline the process by using different metrics and online resources to make the best choice. possible adapted to their needs for financial security. future.


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