Health insurance is an agreement between you and an insurance company. You pay a fixed amount called a premium, usually once a year. In return, the insurer pays for covered medical expenses, up to an agreed limit called the sum insured.
How does it work?
- You choose a plan and a sum insured that suits your family.
- You pay the premium and your cover starts, after any waiting period that applies.
- If you are hospitalised, the bill is settled either cashless (the insurer pays the hospital directly) or by reimbursement (you pay first and claim it back).
- The insurer pays the covered costs, up to your sum insured.
What does it usually cover?
- Hospital room, nursing, doctor and surgery charges
- ICU and medicines during hospitalisation
- Expenses before and after hospitalisation
- Day-care procedures that don’t need a long stay
Exact coverage differs from plan to plan, so always check the policy wording.
Why does it matter?
Medical costs keep rising, and one serious illness can use up years of savings. Health insurance lets you focus on treatment instead of worrying about the bill. Premiums may also qualify for a tax deduction under Section 80D, as per current tax rules.
Before you buy
- Start early, because premiums are lower and waiting periods are completed sooner.
- Cover the whole family, and think about parents separately.
- Check network hospitals near your home.
- Read the waiting periods, exclusions and limits carefully.
Not sure which plan suits your family?
Talk to Bibin for simple, honest guidance.
This article is for general education and is not personal advice. Benefits and terms vary by policy, so please read the policy wording and sales brochure. Insurance is the subject matter of solicitation.