Health Insurance is gaining prominence with ever rising Medical Expenses and changes in life style leading to people being more prone to diseases. In the year 2016 it is expected that around 50% of the population in India will be covered by some form of Health Insurance. Government sponsored health insurance schemes is aimed at the poor trying to provide them the much needed coverage. The Central Government runs three prominent schemes, namely, Employees State Insurance Scheme, Central Government Health Scheme and Rashtriya Swasthya Bima Yojana.
In the Budget 2016, Finance Minister announced Health Insurance cover of Rs 1 lac per family under the National Health Protection Scheme (NHPS) for economically weaker section of the society. Senior Citizens above the age of 60 will get additional cover of Rs 30,000 under the scheme. Government has also announced National Dialysis Programme to address the high cost involved in the Renal Dialysis process. Atleast 2,000 new dialysis centres are expected to start under the scheme.
Need for Health Insurance
In recent years we have seen that the health aliments have not just escalated but are also more complex in nature. The medical expenses have also shot up over the years and when any individual is hospitalized you just cannot estimate the medical bill one will run into. Thus to afford the best medical care and avoid depletion of your finances it is always better to own a Health Insurance.
Health Insurance not only the hospitalization expenses but the diagnosis and medication expenses as well. A good Health Insurance plan will help you meet atleast 70%-80% of the total expenses incurred on the treatment.
Most of the Health Insurances Companies in India offer 5 lacs to 10 lacs coverage which in my opinion may just not be enough incase of critical illness. However, few companies have come with higher coverage but you also need to pay higher premium amount for the same (Health Cover upto Rs 1Cr). The idea of Health Insurance is to provide an individual with financial assistance so that one could avail the best medical treatment without losing your hard earned savings and investments.
Health Insurance can be basically classified in three categories:-
Accidental Insurance, and
Critical Illness Insurance
Now let’s briefly look at the types Insurance.
Medical Insurance (Mediclaim):- It is the General form of Medical Insurance which takes care of your medical expenses in case of hospitalization. The Insurance either reimburses the payment made by an individual or directly bears the hospitalization expenses upto the limit of sum insured. These are generally offered by Non Insurance Companies. The Insurance cover has a limit of 5 lacs or 10 lacs depending on the policies offered by the insurers. Mediclaim policies are available for Individuals or as a Group covering the family members. However, few insurance companies are offering cover upto 1 crore.
Accidental Insurance:- It covers an Individual or a family against accident or disability due to accident. Even minor accidental injury like fracture is covered in the policy. These policies are pretty affordable as they charge very low premium.
Critical Health Insurance:- This type of health insurance provides cover against major ailments. Insurer can be assured of receiving a pre determined amount in case he/she is diagnosed with a critical illness covered under the policy. These policies cover atleast 10-15 such critical illness. Cancer, Stroke and Kidney Failure are few of the illness covered under the scheme. Maximum Coverage in this type of policy is in the range of 20 lacs to 50 lacs but with rise in Medical expenses few of the Private Insurance Companies are offering cover in the range of 1 crore. However these policies attract steeper premium so one needs to compare and avail the best according to his/her needs.
All the Health Insurance policies also attract a Tax Exemption on the Investment under Section 80D. Premium paid on Health Insurance upto Rs 15,000/- for Self, Spouse and dependent children is eligible for exemption. Further exemption of Rs 15,000/- can be availed on Insurance paid for Dependent parents (If parents are above 80 years of age then exemption goes up to Rs 20,000/-).
MEDICLAIM (CASHLESS) INSURANCE
CRITICAL ILLNESS INSURANCE