Health Insurance – Features & Benefits
One major illness can wipe out your entire life savings. Health Insurance (Mediclaim) is the firewall that protects your wealth from medical inflation.
Why do you need it?
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Key Features
1. Cashless Facility
You show your Health Card at the hospital. The Insurance company (TPA) settles the bill directly. You pay nothing (except non-medical items like gloves/food).
2. Waiting Periods
You can't buy insurance after falling ill.
- Initial Waiting Period: 30 Days (No claim except accident).
- Specific Diseases: 2 Years (for slow diseases like Cataract, Stone, Hernia).
- Pre-Existing Disease (PED): 2 to 4 Years (for Diabetes/BP existing before buying policy).
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3. Pre & Post Hospitalization
- Pre: Covers tests/doctor fees 30-60 days before admission.
- Post: Covers medicines/follow-up 60-90 days after discharge.
4. Room Rent Limit (Trap!) ⚠️
Some policies cap room rent (e.g., 1% of Sum Assured).
- Trap: If you take a room costing ₹5000 but your limit is ₹3000, the insurer will cut all other bills proportionately.
- Tip: Always buy a policy with "No Room Rent Capping".
Family Floater vs Individual
- Individual Policy: Separate sum assured for each person. (Good for older parents).
- Family Floater: One shared sum assured for entire family (Husband + Wife + Kids). Checks comes cheaper.
Summary
- Necessity: Medical inflation (15%) is higher than salary growth.
- Early Entry: Buy young to cross waiting periods while you are healthy.
- Disclosure: Declare BP/Diabetes. Rejections happen mostly due to non-disclosure.
- Top-up: Use Super Top-up plans to increase cover cheaply.
Quiz Time! 🎯
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