How Medical Insurance Works?
Medical Insurance: Benefits, Working Principles, and Key Considerations
Medical insurance safeguards the policyholder from unforeseen healthcare expenses, ensuring zero financial burden and optimal treatment facilities. Several insurance companies are approaching the market with multiple policy plans extending medical insurance coverage and benefits as per one's needs. Purchasing a policy is easy, but one must have a profound knowledge of the function of medical insurance and the factors to consider while buying one.
Here's a brief overview of essential medical insurance fundamentals to help you further!
What is the Working Principle of Medical Insurance?
When an individual purchases medical insurance, the insurer analyses the following factors:
●Policyholder’s age
●Medical history
●Gender
●Policy type
●Pre-existing health status, etc.
Depending on these variables, the insurer decides the sum assured and the premium amount for the medical insurance policy. As the policyholder initiates the payment for the first premium, the plan becomes active.
Any missed payments can lead to penalties or loss of insurance benefits. So, the policyholder should continue paying the premium amount on time. During healthcare needs, the insured can claim cashless treatment from the insurance company’s network hospitals or reimburse the expenses incurred in treatment.
What are the Benefits of Medical Insurance?
Medical insurance policies are beneficial in many ways. Here are some of them:
●It helps cope with the increasing medical costs in India by financially covering the policyholder against any health-related expenses.
●Policyholders can claim tax benefits under section 80D of the IT Act against the payment of medical insurance premiums.
●It offers cashless treatment from the network hospitals, where the insurance company directly covers all medical expenses.
●Some medical insurance providers like Star Health Insurance provide critical illness coverage for diseases like cancer, heart disease, etc.
●Preventive healthcare expenses, such as wellness visits, health screening, vaccination, etc., that help address any medical issues at an early stage are covered under this insurance policy.
What is the Need for a Medical Insurance Policy?
The recent pandemic has underscored the critical importance of prioritizing health. Various environmental factors posed health risks before the outbreak, making understanding health insurance essential.
Additionally, medical emergencies can arise unexpectedly, leading to significant financial stress due to soaring healthcare costs. A medical insurance plan safeguards against these expenses, ensuring families are financially secure during crises.
Thus, individuals can protect themselves and their loved ones from overwhelming medical bills by investing in a suitable policy.
Things to Consider While Buying Medical Insurance
Here are some of the factors that one should consider while purchasing a medical insurance policy:
●Sum Insured Amount
To choose an appropriate sum insured amount, one must consider factors like policy duration, tax benefits, existing coverage from other plans, and specific ailments covered by the policy.
●Assess your Healthcare Needs
Evaluating personal healthcare requirements is crucial before choosing a health insurance plan. This includes considering pre-existing conditions and genetic predispositions to certain illnesses, along with age-related concerns and lifestyle habits.
●Settling on a Premium
The premium reflects the amount paid regularly to maintain coverage and is influenced by factors such as age, type of coverage selected, income level, and existing health conditions. Choosing a premium that aligns with your financial capacity while ensuring adequate coverage is essential.
Once you have evaluated these aspects and purchased a health insurance policy, you are prepared for any medical emergencies or planned hospitalizations within the policy period. However, choosing a reliable health insurer is a must to get comprehensive coverage.
Star Health provides cashless hospitalization in over 14,000 network hospitals around India. Also, their policies cover in-patient hospitalization, pre- and post-hospitalization, daycare procedures and more, ensuring minimal out-of-pocket expenses for your healthcare needs.
Call now and let us handle your medical expenses!
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This FAQ page contains information for general purpose only and has no medical or legal advice. For any personalized advice, do refer company's policy documents or consult a licensed health insurance agent. T & C apply.