1 July 2020 | 4 min read

10 Things About Health Insurance That Everyone Must Know 


Gone are the days when health insurance was taken for granted. Life is full of uncertainties, and medical emergencies are one of them. With the increasing cost of healthcare in India, buying a health insurance policy is almost inevitable. Don’t worry, and it’s not as bad as it sounds thanks to the tax-saving benefits that you get when you buy insurance cover.  

There are different types of plans, such as individual health insurance, family health insurance, critical illness insurance, etc. But with so many options available, it can get confusing to find an insurance policy that would work just right for you. That’s why, to make it easier for you, here’s a quick rundown of the ten things that you must know about health insurance. 

Modern Lifestyle

Juggling our professional and personal lives can be pretty stressful, which can sometimes lead to medical conditions such as diabetes, cholesterol, blood pressure, etc. That’s why having an insurance in place is essential for everyone. As people are now more prone to health conditions, the need for comprehensive health insurance is at an all-time high.

Tax Benefit

Under section 80D of the IT Act, you can claim a tax deduction of up to Rs. 25,000 for the health insurance premiums you pay for yourself and up to Rs. 50,000 for policies purchased for senior parents. 

Age Matters 

Age is a crucial factor when it comes to insurance. There is an age limit for every health insurance. Generally, plans have a minimum age limit of 25 years up to a maximum of 65 years. It is wise to start when you are young and reap the benefits in times of need for medical purposes.

Cashless Hospitalization Benefits

Health Insurance companies usually have a tie-up with network hospitals where the insured members can avail cashless treatment in case of a medical emergency. It saves you from the tedious paperwork that is required at the time of admission and claim. Moreover, you – the insurer pays the sum insured directly to the hospital. 

Pre And Post Hospitalization Coverage

Not only mainstream medical costs but also the cost of OPD {outpatient department} expenses, diagnostic tests have also risen in recent times which have made it even more vital for one to buy a health insurance policy. Most health plans cover the medical expenses that are incurred during the hospitalization. But it would help if you also went for a plan that includes costs incurred before and after the hospital admission as well to save the expenses incurred on ambulance charges, medical tests, medicines, doctor fees, etc. 

Prevention Is Always Better Than Cure  

With the current lifestyle, increase in pollution, and coronavirus, people are suffering from various diseases even at a young age. It is advisable to make the most of preventive health check-ups under your policy. Nowadays having medical coverage as early as possible is essential since it is not only a secure safety net but also premiums are lower, which is a significant saving in terms of finances. 

Know Your Insurance Company Better 

It is essential to choose the right insurer. You must check the company’s incurred claim ratio before selecting a plan. A good incurred claim ratio would prove its efficiency in settling claims. 

Maternity Benefits

With medical expenses on the rise, pregnancy costs are no different. Women need to have insurance that offers maternity benefits. For maternity benefits, one should look into the waiting period applicable for claiming maternity expenses and consider the sub-limit (a fixed value for a particular disease/treatment). The policy should also cover outpatient expenses and check for exclusions related to the policy. 

Smooth Claim Process

A smooth claim procedure is truly a blessing at the time of settling health claims. Check the policy wordings and go through the health insurance claim process that is followed by the insurance company. You can do some research, read customer reviews online, and select a health insurance provider that offers seamless claim settlement services. 

Difference Between Individual Health Insurance And Employer Health Insurance

When you are buying a health plan on your own, you are purchasing an individual or family plan. You pay a premium every month for the insurance.  If you get health insurance through work, you have employer-sponsored health insurance. You likely pay an amount that’s deducted from your salary. 

As an aspiring Indian, you need to keep in mind that money not spent on essential financial elements like health insurance in the urge of saving more tax could become a regret at some point in the future. It’s always better to stay prepared. Now that you are aware of things that you must know about health insurance, why wait? Check out digibank’s health insurance now. You can easily compare and choose plans that best suit your lifestyle in just a few clicks.  



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