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Medical Insurance and Its Benefits

About 30% of the Indian population had no health insurance in 2021. A significant number that goes well beyond 40 crore in a highly populated country like India. 

Good health, being the bedrock of all happiness, should never be risked. But medical conditions are not obliged to ring the doorbell every time they enter our lives. This often leads to tremendous physical and emotional stress all at once. Thankfully, medical insurance offers a ray of hope by easing our tensions, up to a certain extent. They are the crucial safety net that we need to cope with unpredictable healthcare costs. You can also access quality medical facilities to overcome your health complications. It even ensures timely preventive care for the future and so much more. All of these combine to foster a smoother and faster road to recovery.  

So, let us dig deeper and learn to maximize the various medical insurance benefits for our own good. 

Medical Insurance - Overview

Medical insurance, aka health insurance, is a monetary tool. It covers the medical expenses of an insured person during a health crisis. The situation may include treatments for critical illnesses and planned hospitalizations. As well as unplanned occurrences like accidents. The biggest benefit of having medical insurance is financial security. It comes with a lot of relief, as you do not have to empty your lifelong savings to get adequate treatment.

The list of features of medical insurance is pretty extensive. And the more we know, the better it is for us to navigate through the healthcare path. But before we dive into the boons, we must enlighten ourselves on the varied medical schemes. This is because the type of policy you opt for is the main component of the puzzle. It dictates the kind of benefits you and your family can enjoy from the investment.

Here is a peek into the common medical insurance plans in India. 

Medical Insurance Policy Types

  1. Medical Insurance Individual Plans - In this, each member of the policy has a fixed insured amount. 

  2. Family Floater Medical Insurance- This will cover the entire family. However, each member has to share the insured amount. 

  3. Senior Citizen Medical Insurance- This is exclusively designed to meet the medical needs of a senior individual. Hence, it includes several additional coverages. 

  4. Critical Illness Insurance - Such schemes are ideal to combat long-term diseases. Especially the ones with expensive treatments like cancer, heart disease, etc.

  5. Group Medical Insurance- These are usually purchased for a large group of individuals. For example, an employer can buy such a plan for all their employees.

How to Choose a Good Medical Insurance Policy?

There is no single best medical insurance policy in India. Each scheme has its own set of highlights. So check the medical insurance policy details thoroughly. Then go for the plan that best serves your needs. 

That being said, any good health insurance policy will have the following.  

  • Coverage against a wide array of critical medical conditions. 

  • Offer flexibility to decide what coverage you want.

  • No rise in premiums amidst a policy term irrespective of your health situation.

  • Long policy term which will provide coverage in your old age too.

  • A broad hospital network that ensures quick and easy access to varied health cures.

Medical Insurance Benefits

Having proper medical insurance can open the doors to whole new possibilities.

Depending on the medical insurance policy type, you can expect the following benefits:

  1. Monetary safety

The medical costs are skyrocketing with each passing year. And India is no stranger to that. In such a scenario, a good health insurance plan can help you pass a stressful and unexpected financial test. You can avoid excessively high expenses without compromising on the quality of treatment.

  1. Hospital bills

The coverage of hospitalization expenses is one of the key medical insurance benefits. It includes a wide range of costs like:

  • Accidental hospitalization

  • Intensive Care Unit (ICU) 

  • Disease-related hospitalization

  • Organ donor 

  • Home treatment under medical supervision

  • Before and after hospitalization

  1. Tax saving benefits

Medical insurance and tax benefits go hand in hand. With a proper plan, you can claim deductions up to Rs. 1 lakh as per Section 80D of the Income Tax Act, 1961. 

  1. Free health checkups

Some medical insurance policy types also include complimentary checkups. But the exact terms vary from one plan to another. 

  1. Easy cashless claims

The medical insurance plans in India provide cashless hospitalization. You do not have to struggle with lengthy claim processes; instead, focus on your well-being. The insurance firm is there to handle the bill settlement with the hospital on your behalf. 

  1. Day Care Costs

The field of medicine has undergone remarkable improvements in the past few years. Hence, many medical processes that were time-consuming earlier no longer require lengthy hospitalizations. Patients may be released in 24 hours or even on the same day. If you take a good insurance plan, it will cover such treatments. 

  1. High coverage at low costs for young people

Having a health insurance policy has almost become a necessity. So, instead of waiting for age to catch you up, it is best to start early. It can amplify the benefits by helping you enjoy:

  • High coverage at low premiums 

  • Longer policy tenure

  • Minimal/ no waiting period

  1. Additional advantages

Medical insurance and its benefits include other important takeaways too. They may include:

  • Maternity and newborn baby coverage

  • Ambulance costs

  • No Claim Bonus (NCB is given by the insurance company for consecutive claim-free years)

  • Daily hospital allowance

  • Preventive healthcare expenses

  • Alternate treatment costs

Apart from the basic health insurance perks, you can also avail the rider benefits. This will strengthen your coverage with many extra boons for certain conditions. You can customize from the various rider options on extra premium charges as per your needs. 

Final Thoughts

The medical insurance benefits in India are multifaceted. They are the perfect financial solution for several health concerns. At the same time, they are also the means to gain that peace of mind that you get only when life seems more manageable. 

To enjoy the most profits, we suggest you take up a medical insurance plans comparison strategy. This will help you analyze the features better and then decide which medical policy is worth your money. A good policy will always have sufficient benefits to justify the premium you have to pay. As for the insurance providers, consider their track record for settling yearly claims. A high claim settlement ratio is a big green flag and makes the provider more reliable.


The Author : Dr. Sunil Khattri 

+91 9811618704

Dr. Sunil Khattri MBBS, MS(General Surgery), LLB, is a Medical doctor and is a practicing Advocate in the Supreme Court of India and National Consumer Disputes Redressal Commission, New Delhi.

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