The relevance of having health insurance in today’s times becomes crucial, especially when we are finding it difficult to balance our work-life with healthy lifestyle choices. On top of that, medical emergencies may arise without any intimation. While you may not predict the outcome in this case, what you can do is prepare beforehand against emergencies with health insurance plans.

Having health insurance safeguards you and your family from the substantial financial burden of paying the treatment costs. Furthermore, a health insurance policy also helps you cope with the work-pay loss while undergoing treatment, which may otherwise cause imbalances in your family finances. 

Health insurance plans in India are basic indemnity-based insurance products, which are specifically designed to provide financial assistance against medical expenses incurred in case of hospitalization or critical illnesses. Health insurance covers medical expenses, which includes hospitalization expenses, treatment expenses, surgeries or any other medical cost.

In other words, having health insurance coverage will enable you to opt for the best possible medical treatment. On your behalf, the insurance company will either provide cashless treatment or reimburse the hospital expenses. 

Cancer Insurance plans help tackle the medical treatment expenses in case you are diagnosed with cancer. These plans provide comprehensive protection against all stages of Cancer. You receive a portion of the cover paid upfront upon diagnosis of cancer at an early stage, while all the future premiums are waived. If cancer is detected at a major stage, you may receive the full cover amount with an additional income for a specific period.

b) Critical Illness Benefit

Critical Illness benefit helps avail of comprehensive financial protection in the form of payouts upon diagnosis of any life threatening ailments. Max Life Insurance offers Critical Illness Benefit as an add-on feature with its term plan variants - Max Life Smart Term Plan (UIN: 104N113V04)* and Max Life Online Term Plan Plus  (UIN: 104N092V04)*.

Under Max Life Smart Term Plan, critical illness cover is an in-built feature known as Accelerated Critical Illness (ACI) Benefit.  The ACI benefit provides coverage against 40 life threatening ailments including such as stroke, Open Chest CABG (Coronary Artery Bypass Graft), kidney failures, permanent paralysis, and muscle sclerosis.

* A Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan

c) Individual Health Insurance Plan

An Individual Health Insurance Plan provides financial protection against health expenses incurred by an insured individual. These health insurance plans cover for surgical and hospitalisation expenses (for up to the cover limit as per the plan). The premium payable for an individual health insurance plan is decided based on the age and medical history of the individual purchasing the plan.

d) Family Floater Health Insurance Plan

If you wish to purchase health insurance coverage for your entire family (including spouse, children and parents) under a single plan, then you may choose a Family Floater Health Policy. The family members are covered against hospitalisation and surgical expenses under the family floater health insurance plan. The premium payable for a family floater health plan is calculated based on the age of the eldest family member.

e) Group Health Cover

Group Health Insurance policies are purchased by employers for their employees. The premium payable under a group health insurance plan are usually standardized and offer the same set of benefits to all the employees covered under the plan.

Having health insurance enables you to receive the best possible care in case of a medical emergency, without putting any strain on your savings. In other words, health insurance plans offer comprehensive protection against medical costs, which may increase rapidly depending upon the situation.

In a nutshell, a health insurance policy provides coverage against hospitalization expenses, domiciliary expenses, day-care procedures, and ambulance charges, among other costs. Subsequently, you can focus on a speedy recovery while your loved ones can support their regular expenses.

2. Additional Financial Protection Against Critical Illnesses

In case you are diagnosed with a critical illness included under the predetermined list of your health insurance policy, you are eligible to receive a significant amount as a lump sum. You can utilize this amount to meet your daily expenses, illness-related treatment costs, and any other requirements.

Health insurance plans in India, nowadays, also offer cashless claim facilities across any of the leading hospitals in the country. In cashless treatment, you do not have to take care of treatment costs out of your pocket. Instead, your health insurance provider directly settles the hospitalization expenses with the hospital on your behalf.

To avail of cashless treatment benefits, however, you have to seek admittance at any of the network hospitals as prescribed under your health insurance policy. Furthermore, you may have to fill out a pre-authorization form and provide your health insurance card to avail of the cashless treatment facility.

To promote awareness and access to comprehensive health insurance plans to the masses, the government offers significant tax-deductions on the premium paid towards the health insurance policy.

Accordingly, the premium paid towards your health insurance policy is eligible for tax deduction under Section 80D. The quantum of tax deductions under your medical insurance plan is as below:

a) If you purchase health insurance coverage for your spouse, children and yourself, you can save up to Rs 25,000 as tax deductions.

b) By including your parents (below 60 years of age) under your health insurance coverage, you can avail of additional tax deductions up to Rs. 25,000, to take your total tax savings up to Rs. 50,000

c) In case your parents are ageing 60 years or above, the total amount of tax savings may increase up to Rs. 75,000

d) You can also avail of a deduction of Rs. 5000 towards payment of preventive health check-up of your spouse, dependent children, parents and yourself. 

A comprehensive health insurance policy or medical insurance not only helps take care of the medical bills but can also provide coverage for other medical tests, treatments and procedures as per your need. With the right health insurance policy in your kitty, you can avail of sufficient financial coverage in any dangerous situation.

Having health insurance is a crucial decision for several reasons. In the absence of health insurance coverage:

• You are likely to utilize all of your savings while undergoing medical treatment and end up with a fiscal burden
• You may have to opt for a sub-optimal treatment in case you do not have sufficient savings to take of the expenses
   

On the other hand, health insurance plans in India provide:

• Comprehensive coverage benefits that outweigh the costs of buying health insurance
• Tax savings under Section 80D on the premium payable for health insurance coverage
• Financial assistance to cover treatment, pre-and post-hospitalization expenses within the coverage tenure
   

Certain health insurance plans such as Max Life Cancer Insurance Plan (UIN: 104N093V03)] * help provide comprehensive financial protection against all stages of cancer, by giving you an option to increase the sum assured under the policy by 10% for the first five claim-free years, at no extra cost.

*  A Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Plan