With a steady rise in healthcare costs and numerous lifestyle diseases, health insurance is no longer a luxury but a necessity. Health insurance offers financial protection against medical expenses incurred in treating injuries from an accident or a medical condition covered under a policy. It is advisable to purchase a medical insurance policy at the earliest to safeguard against unforeseen medical expenses. From individual and group health insurance to family floater plans and senior citizen health insurance, there are different types of health insurance plans available in India to cover the entire family.
A health insurance policy is a contract between the insurance company and the policyholder, wherein the insurer pays for the medical expenses incurred by the life insured. The insurer will either provide a reimbursement for your medical expenses or ensure you are eligible for cashless treatment for injuries or illnesses covered under the policy at one of the network hospitals. You can also get tax deductions on the premiums paid towards health insurance under Section 80D of the Income Tax Act, 1961.
To get a health insurance policy, an individual has to pay a premium amount at regular intervals as selected by him/her during the inception of the policy. From the commencement of the policy, if the insured person has any medical expenses to bear, the insurer will be liable to pay them as per the terms and conditions.