Health Insurance

Health insurance, also called Mediclaim, is a way to pay for advanced medical treatments that typically require you to be in hospital overnight. It also covers certain other day care procedures like cataract surgery, etc. that don't require you to be hospitalized but are expensive nevertheless. Thus, a health insurance policy covers your medical expenses and gives you financial relief.

Benefits of Health Insurance

• Medical Bills: Coverage for medical expenditures, including those incurred before and after hospitalization coverage for incurred medical expenses.
• Pre-existing Diseases: After a predetermined waiting period, you are given coverage for any pre-existing diseases.
• Tax Benefit: The premiums paid for Term Life Insurance are tax free under section 80(C), up to an amount of INR 150,000.
• Claim Reimbursement: Coverage for expenditures incurred for hospitalization brought on by a medical.
• Tax Rebate: The annual premium paid for health coverage are subject to tax exemption under section 80D of the Income Tax Act of 1961 between INR 25,000 to INR 75,000 are exempt from taxes.
• Tax benefits are subject to changes in tax laws.
• Other Benefits: OPD expenditures are now covered by a few insurance plans and the claim reimbursement is not dependent on hospitalization for a minimum of 24 hours. Standalone OPD plans are also available in the market.

Key Terms to consider while evaluating Health Insurance plans:

• Sum Insured Amount
• Policy premium to be receive the coverage benefits
• Sum Insured Amount
• List of network hospitals and Claim Settlement Ratio
• Sub-limits (if any) and Waiting Period (for PEDs)
• Co-payment clause