One of the leading causes of insolvency in India is medical inflation. People’s life savings are lost if they are diagnosed with acute diseases or are severely harmed in an accident. Purchasing the best health insurance in India is your best choice if you want to safeguard your money against medical bills.
What is Health Insurance?
It is a type of insurance policy that provides coverage for medical expenses, including hospitalisation, surgery, and other medical services. Private companies typically offer medical insurance policies, although some government programs also provide health insurance in India.
In exchange for paying a premium, which is the amount the insured person pays to the insurance company regularly, the insurance company agrees to cover some or all of the healthcare expenses that the insured person incurs. This coverage can be for a specific period, such as a year, or a particular medical condition or procedure.
How does Health Insurance Work?
The specific details of the best health insurance in India can vary depending on the insurer and the specific policy. Still, some key concepts are essential to understand how medical insurance works. They are explained below:
A deductible is an amount the insured person is responsible for paying before the insurance company starts covering medical expenses. For example, if an insurance policy has a ₹1,000 deductible, the insured person would need to pay the first ₹1,000 of medical costs out of their pocket before the health insurance companies would start paying.
A co-payment, or co-pay, is a fixed amount of money the insured person is responsible for paying for certain medical services. For example, an insurance policy might require a ₹500 co-pay for a visit to a primary care doctor or a ₹700 co-pay for a specialist visit. The insurance company would then cover the rest of the cost of the visit.
Coinsurance is similar to a co-payment, but instead of a fixed amount, it is a percentage of the total cost of a health-related service. For example, an insurance policy might require the insured person to pay 20% of the cost of hospitalisation, with the insurance company covering the remaining 80%.
The out-of-pocket maximum is the total amount the insured person is responsible for paying in a given year. Once the insured person reaches the out-of-pocket maximum, the insurance company will cover 100% of the annual medical expenses. This can be an essential protection for people with high medical expenses, as it ensures they won’t have to pay an unlimited amount out of their pockets.
Many best health insurance policies have a network of providers covered by the insurance company. This means that the insured can receive medical services from these providers at a lower cost than if they went to a provider not in the network. If the insured person goes to a provider, not in the network, they may be responsible for a higher portion of the cost.
Some insurance policies have waiting periods before certain services are covered. For example, a policy might require a waiting period of six months before it will cover a pre-existing condition. Waiting periods vary widely between policies, so it’s essential to read the policy carefully before signing up.
Benefits of Health Insurance
There are many benefits to having a health policy. Some of them are listed below:
- Financial Protection: Medical insurance helps protect individuals and families from the high cost of medical care. Without healthcare insurance, individuals may be responsible for paying all medical expenses out of pocket, which can be financially devastating.
- Access to Care: Such insurance policies provide individuals with access to medical care, including preventative care, which can help keep them healthy.
- Peace of Mind: The best health insurance can give individuals and families peace of mind, knowing they are protected if they become sick or injured.
- Lower Costs: Medical insurance can help lower the cost of medical care by negotiating lower prices with providers and spreading the financial risk of illness or injury among a large group of people.
A policy that covers healthcare is an essential type of insurance that helps individuals and families afford necessary medical care. Several types of best health insurance plans in India are available, each with unique features and benefits. Niva Bupa is one of the top insurers in India providing best-suited health plans according to the policy buyer’s requirements. Get in touch with them to know more about their various product offerings.