Simply put, health insurance is a comprehensive insurance plan that covers all your medical expenses. But, merely buying a health insurance wouldn’t be of much use unless you know about the nitty gritty of the plan you have chosen. In this article, let’s attempt to decode health insurance and its various aspects.
Health insurance is a guaranteed compensation that the insurance company agrees to pay if the insured needs hospitalisation due to any disease or accident. The insured gets cashless treatment if hospitalised in one of the hospitals which have a tie-up with the insurance company.
If the hospital is not among the tie-up list, the insurance company reimburses the expenses that have incurred for hospitalisation. Other than these benefits, having a health insurance policy also helps in a tax deduction.
What Is the Importance of Health Insurance?
We cannot predict any health ailments, and with the rising cost of medical expenses, it is of utmost importance to have health insurance for the family and yourself. Having health insurance would help to recover all your medical expenses without having to dig in your savings or your investments.
What are the inclusions of a Health Insurance Policy?
- A health insurance policy covers all the in-patient hospitalisation charges. It includes the room rent charges, doctors and nurses fee, OT charges, the entire cost of medicine, oxygen, blood etc.
- It also covers pre and post-hospitalisation charges which include the medical costs incurred before hospitalisation and after discharge.
- A certain amount of ambulance cost incurred while taking the insured to the hospital is also covered.
- It also covers day-care treatments, which is when you do not require hospitalisation for 24 hours.
- The health insurance plans also cover the expenses incurred during organ harvesting from the donor and organ transplantation.
- It also covers non-allopathic treatment or AYUSH treatment (Ayurveda, Unani, Siddha, Homeopathy)
- At times due to unavailability of hospital beds or if the insured is not in the condition for going to the hospital, the treatment takes place at home. Such treatments are known as Domiciliary treatments, and health insurance plans cover such treatments.
While the above features are common in a health insurance policy, there are few other notable inclusions in some popular Health Insurance plans.
- Some health insurance plans include maternity coverage, that is the expenses incurred during childbirth
- New-born baby coverage which is also a part of maternity coverage
Here are some typical exclusions of the health insurance plans.
- Pre-existing illness: At the time of buying the policy if the policyholder has any pre-existing health ailments, then such illness is not covered under the policy. If the insurer agrees to cover the disease, the waiting period would be 2-4 years depending upon the risk of the illness.
- Waiting clause: It does not include any medical illness occurred between 30- 90 days of buying the policy
- Self-infected disease
- Injuries occurred due to alcohol or drug abuse
- Cosmetic treatments
- Dental treatments
- Any accidents caused due to war, riots or any related perils
Health insurance policy is a must to beat the rising cost of expenses in the medical sector. One must also ensure to read the inclusions and the exclusions carefully before finalising on the best plan.
News Source: Times of India