Health insurance is no longer optional. Medical costs in India are rising every year, and a single hospital visit can affect your savings. A good health insurance policy protects you and your family from financial stress during medical emergencies.
In this blog, we explain the most important facts related to health insurance policies in simple and clear language.
1. Health Insurance Covers More Than Hospitalisation
Many people think health insurance only pays for hospital stays. That is not true.
Most modern policies also cover:
- Pre-hospitalisation expenses
- Post-hospitalisation expenses
- Daycare procedures (no 24-hour admission needed)
- Ambulance charges
Always check what is included before buying a policy.
2. Waiting Periods Are Important
Every health insurance policy has waiting periods.
Common types include:
- Initial waiting period: Usually 30 days for most illnesses
- Pre-existing disease waiting period: 2 to 4 years
- Specific illness waiting period: For diseases like hernia or cataract
Claims made during the waiting period are usually rejected.
3. Pre-Existing Diseases Are Covered Later
If you already have a medical condition like diabetes or blood pressure, do not worry.
Most insurers cover pre-existing diseases after the waiting period.
Always declare your health condition honestly while buying the policy.
4. Cashless Treatment Is Available
With a cashless facility, you do not need to pay hospital bills upfront.
- Available at network hospitals
- Insurance company settles the bill directly
- Saves time and stress during emergencies
Check the list of network hospitals before finalising the policy.
5. Room Rent Limits Matter
Some policies have a room rent cap, such as:
- 1% or 2% of the sum insured per day
If you choose a higher category room, you may have to pay extra charges.
Always check room rent limits carefully.
6. No-Claim Bonus (NCB) Increases Coverage
If you do not make any claim during a policy year:
- You get a No-Claim Bonus
- Your sum insured increases without extra cost
This helps you get higher coverage over time.
7. Health Insurance Gives Tax Benefits
Health insurance premiums are eligible for tax deduction under Section 80D of the Income Tax Act.
You can claim deductions for:
- Self and family
- Parents (additional benefit)
This helps you save tax while staying protected.
8. Annual Health Check-ups Are Included
Many insurers offer free health check-ups after every few claim-free years.
This helps in early detection of health issues.
9. Policy Renewal Is Very Important
Never miss your renewal date.
If your policy lapses:
- You may lose accumulated benefits
- Waiting periods may start again
Set reminders or choose auto-renewal options.
10. Read the Policy Document Carefully
Before buying any policy, read:
- Inclusions and exclusions
- Claim process
- Sub-limits and co-payment clauses
Understanding these details helps avoid claim rejection later.
Conclusion
Health insurance is a smart and necessary investment for every individual and family. Knowing these important facts helps you choose the right policy and use it effectively when needed. Always compare plans, read the fine print, and select coverage based on your health and financial needs.
If you want help choosing the right health insurance plan, feel free to ask.