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Health Insurance Policy

What is Health Insurance?

Health Insurance is an arrangement by which the insurance company would pay or reimburse the medical expenses of the individual, for hospitalisation caused due to certain illnesses or accidents. In return for this service, a certain amount, called premium, is paid by the policyholder to the insurance company.

Why is it essential to obtain Health Insurance?

Everyone aims to be fit and healthy all the time, but we never know when a medical emergency or a medical need may arise in today’s times. The rising cost of medical treatment should not be a deterrent in procuring the best medical care that we can procure for ourselves and our loved ones. Providing the best possible medical care can cause a severe strain on our financial position, and hence on our quality of life. A health insurance policy helps us insure against such eventualities. By obtaining a health insurance policy, we pay a certain premium to the insurance company, in exchange for which, they assure us of covering our hospitalisation and treatment expenses up to a pre-agreed sum.

Types of Health Insurance Policies

There are various kinds of health insurance policies and it is extremely important to understand them all beforehand.

  • Individual Health Insurance policy – This policy covers the surgical and hospitalisation expenses of an individual, singly. Premium is paid based on the age, past medical records and pre-existing disease(s) of the individual only.
  • Family Health Insurance policy – Popularly know as the family floater health insurance policy, this policy covers the surgical and hospitalisation expenses of the entire family. For the purpose of a family health insurance policy, a family is defined as the individual, their spouse and their children only.

    The premium paid covers every family member and the insurance limit can be used for any of the family members in a given year. Premiums are determined based on the age of the eldest member in the group, the health history of all members being covered and pre-existing diseases, if any, at the time of first taking the insurance policy.

    • Group Insurance Policies – This type of health insurance is provided by organisations to their employees and may also be extended to the family members of the employees, depending upon the organisation internal policies. This health insurance policy works in a similar manner as an individual health insurance policy or a family health insurance policy (depending on who all are covered by the same) with the major difference being that the premium is paid by the employer, and the policy benefits end in case the individual leaves the organisation.
    • Critical Illness Insurance – Under this policy, the policyholder is provided with a large lump sum figure, in case of being diagnosed with a life-threatening disease. The list of such illnesses is shared at the time of purchase of the policy and is restricted to the same. The objective of this policy is to help the policyholder pay for expensive treatments, which are generally linked to these critical illnesses and to replace their income during the long associated treatment periods.
  • Senior Citizen Health Insurance - Companies often health insurance policies to senior citizens as well. As people above a certain age are more susceptible to illnesses, the premium being paid here is generally higher.

Points to keep in mind

Here are the aspects to look at to ensure that you buy the best health Insurance policy available in the market!

  • Adequate Cover – Asses your needs or what would be needed in case things go wrong. The points that one might need to consider while determining the value of the health insurance are:
    • Place of residence – Cost of medical treatment facilities in and around their location of residence.
    • Pre-existing diseases - In case the individual or any of the family members have any pre-existing diseases, one should ensure that the insurance cover being taken is adequate to cover the required treatment.
    • Premium – The amount of premium one can shell out every month or year at ease, without undergoing financial burden.
  • Type of Health Insurance to be purchased – It is important to assess whether you need to purchase individual or family health insurance. For instance, as the family insurance premium is determined by the age of the eldest family member, the premium for all the members together may shoot up if the eldest member is quite old as compared to other members. It may then be feasible to purchase an individual health insurance policy for that member and family floater for rest.
  • The earlier the better – It is important to note that none of the insurance companies cover pre-existing diseases at the time of purchasing the health insurance policy for the first few years and there is a waiting period to cover them eventually. Hence, one should buy a health insurance policy earlier in life so that pre-existing diseases, if any, get covered as soon as the initial waiting period is over. In addition, there is a lesser probability of one having many diseases when young.
  • Cashless hospitalisation – All insurance companies, have tie-ups with certain hospitals, where they offer cashless hospitalisation facilities. Under this arrangement, there is no need to pay the huge hospital bills in cash and then later file a claim request. It saves us from the anxiety to arrange the required funds and also fill out the tedious paperwork related to filing health insurance claims. It is best to choose an insurer that has multiple empanelled hospitals in your vicinity so that you can opt for what is best suited to your needs.
  • No Claim Bonus - This is a bonus offered by some insurance companies for every year that the health insurance policyholder does not file a claim. One must evaluate the various offers being made by insurance companies before concluding on the best health insurance policy that would suit their needs.
  • Claim Processing - It is important to select an insurance company with a good track record of clearing claims and making timely payments.

Muthoot Finance, through its wholly owned subsidiary Muthoot Insurance Brokers, believes in ensuring the best for its customers. We help our esteemed customers evaluate their needs and then research the best option available to them. Our customers can navigate various options available to them and help them choose the best health insurance policy suitable for their families.

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CUSTOMER SUPPORT NO.:
8590223204

WRITE TO US:
mib@muthootlife.com

VISIT OUR WEBSITE:
www.muthootinsurancebrokers.com

BRANCH TIMINGS:
Mon-Sat, 9:30 AM to 6 PM

Refer a Friend*

Refer a friend & get a Chance to
Win Exciting Muthoot Finance Merchandise

refer now

*T&C apply

Ask an Expert

CUSTOMER SUPPORT NO.:
8590223204

WRITE TO US:
mib@muthootlife.com

VISIT OUR WEBSITE:
www.muthootinsurancebrokers.com

BRANCH TIMINGS:
Mon-Sat, 9:30 AM to 6 PM

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