What is Health Insurance?
Health insurance, also called as Mediclaim, is way to pay for advance medical treatments that typically require you to be in-hospital overnight. It also covers certain other day procedures like cataract surgery, etc. that don't require you to be hospitalized but are expensive nevertheless.
How does insurance work?
You pay a small premium every year to the insurance company, in return for which you get a large cover, typically 30-100 times the premium you paid. The insurance company collects many such small premiums from a large number of customers to create a pool from which they pay your claim in case you are hospitalized. Insurance companies are able to offer you a cover several times the premium you paid simply because not everyone in the pool falls sick in the same year!
What is Health Insurance?
Health insurance, also called as Mediclaim, is way to pay for advance medical treatments that typically require you to be in-hospital overnight. It also covers certain other day procedures like cataract surgery, etc. that don't require you to be hospitalized but are expensive nevertheless.
How does insurance work?
You pay a small premium every year to the insurance company, in return for which you get a large cover, typically 30-100 times the premium you paid. The insurance company collects many such small premiums from a large number of customers to create a pool from which they pay your claim in case you are hospitalized. Insurance companies are able to offer you a cover several times the premium you paid simply because not everyone in the pool falls sick in the same year!
What does health insurance not cover?
Health insurance will not cover treatments for HIV/AIDS, drug/alcohol abuse, self-inflicted injuries, and cosmetic surgery. It is also not for routine doctors’ visits, medicines or tests unless specifically included in the plan as add-ons. Similarly, maternity is not covered, unless explicitly mentioned as an add-on.
Some specified conditions such as hernia, varicose veins and fibroids, etc. are covered only after you have spent some time in the policy, typically 1-3 years. Its best to disclose your medical history truthfully before you buy a policy to ensure your claim expectations are met. Discuss this with our expert to figure out your best options - we will maintain strict confidentiality.
How much insurance should I buy?
Advances in medicine have improved outcomes, but costs keep rising too. You wouldn't want to compromise on advanced treatment options, right? Hence, we recommend at least 10 lakhs of cover for a family so that you are adequately covered. Family floater plans are smart cost-effective way to cover an entire family for a large sum, versus buying individual policies.
I have employer insurance, should I still buy?
Employer cover is often too less and/or does not cover all the family members. Does your employer policy have at-least 5 lakhs of cover?
Even If you have employer cover, it still makes sense to buy your own insurance because:
a. You lose the cover when you retire or leave the job, and
b. It can become difficult to get health insurance at that time if you are suffering from conditions like diabetes or blood pressure, the risk for which increases steeply with age.