The rising cost of medical treatment in the country is burdening all sections of society. People who get diagnosed with critical illness or any catastrophic injury in an accident lose their entire life savings. Buying a health insurance plan can be the best option if you're seeking a means to protect your funds from rising medical treatment costs.
Now, Let us talk about how health insurance works in India.
What is Health Insurance?
Health insurance is defined as an agreement between a health insurance company and a policyholder. The policyholder must pay a predetermined amount to the health insurance company regularly. In return, the insurance company will provide financial health coverage to the policyholder. This health insurance premium amount will determine based on various personal information such as age, gender, medical history, etc.
How Does Health Insurance Works in India?
Health insurance provides financial assistance to its policyholders during medical emergencies. There are different types of health insurance plans available in India, but the basic working of all these plans are the same. Below mentioned are the steps involved in how health insurance works are:
- Analyze your needs and financial limits
- Choosing a health insurance plan
- Select the sum insured amount
- Choose your desired add-on riders
- Pay your premium amount at regular intervals
- Now in case of a medical emergency, You can use your health insurance plan
The premium amount you need to pay depends on various factors such as the sum insured amount, age of the insured, coverage benefits, deductibles, add-on riders, etc.
How Does Health Insurance Renewal Work?
You have to pay a premium amount to buy a health insurance plan. However, this premium is valid only for a specific period. Generally, premium payments for health insurance policies can be made annually, half-yearly, quarterly or monthly. Once your health insurance plan expires, you need to renew it. This is necessary because health insurance coverage ends after the health policy expires. So, if you want to be covered for medical expenses all the time, you need to renew your health plan before it expires.
You should contact your insurance provider to renew your health plan. You can also renew your health insurance plan online. Visit the official website of your health insurance company, select the policy that needs to be renewed, and pay the renewal premium to renew your health plan and extend the term of the policy.
How Does Health Insurance Claim Work?
You must file a claim to get your insurance paid for medical expenses. But as soon as they receive your claim, your insurer will check to see if the treatment is covered under your health policy terms.
Suppose your illness is covered and you are taking treatment at the network hospital. In that case, you are eligible for cashless hospitalization, and the insurance company will pay the total bills directly to the hospital.
But, cashless treatment is not available if you receive treatment in a non-network hospital. If so, you will have to settle your hospital bill on your own. And then, you can make a claim with your insurance company by submitting the required documents. The health insurance company will verify your documents and then reimburse your claim within 10-15 working days.
Benefits of Health Insurance
In case of a medical emergency, having a health insurance can be a boon. Here are a few benefits of having a health insurance plan other than coverage benefits:
- Reduced Stress
- Tax Benefit Under 80D
- Protect Your Savings
- Protects You and Your family in medical emergencies
- Financial Security
As we know, the lifestyle we are living with, and with rising medical inflation, health insurance has become an essential part of your life. Buying health insurance is quite simple and beneficial. For that, you need to understand how health insurance works for a great and hassle-free experience. Also, you can use RenewBuy to buy the best health insurance plan for you and your family.