What Is Health Insurance? Definition & Types

There is nothing that matters more in life than your health and the health of your family. Beyond the adage of health is an individual's true wealth; having good and stable health is truly the foundation of everything else in life. However, a wide variety of uncertain events and diseases can affect your health in an adverse manner.

Therefore, it is important to add a layer of protection to your health by purchasing a health insurance policy. With the advent of technology, you can opt for an online health insurance plan and financially safeguard yourself against health-related issues.

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What is a Health Insurance Policy?

A health insurance policy is an agreement between an insurance company and an individual wherein the former promises financial protection to the latter in the wake of a predetermined accident or illness that leads to the covered medical expenditure. Therefore, by purchasing medical insurance, you can be assured of financial support whilst dealing with a disease or severe injury.

The meaning of health insurance is clear and straightforward: it is a tool that ensures that any health-related risks and events do not put a dent in your finances. With the ever-increasing awareness of health and lifestyle-resultant diseases, the health insurance policies available in India have become more diverse and comprehensive. The ongoing global Covid-19 pandemic has significantly widened the public horizon on health and the importance of adequate medical insurance.

Therefore, in recent years, there has been a substantial surge in the number of people buying health insurance policies in the country. At Tata AIG, we have always been committed to providing excellent medical insurance plans to our policyholders. You can assess the Tata AIG health insurance plans on our website and select the one most suited to you.

Types of Medical Insurance Plans

There are different types of health insurance policies in India, some of which have been discussed below.

  • Individual Health Insurance

An individual health insurance policy provides medical insurance coverage to an individual. You can buy separate individual health insurance plans for different members of your family and ensure that they are financially safeguarded against any health-related issues and unforeseen events. At Tata AIG, we offer individual health insurance with a sum assured as low as ₹3 lakhs. Our wide range of medical insurance policies, under Tata AIG MediCare Health Insurance, provide you coverage for pre-hospitalisation, hospitalisation, and post-hospitalisation expenses, as well as a cover for Covid-19.

  • Family Health Insurance

Why purchase multiple health insurance policies for the members of a single-family when one plan can suffice?! With the Tata AIG Family Health Insurance Plan, you can get medical insurance coverage for your entire family under the same plan. These plans tend to have a higher sum assured since it is shared by all the family members who are part of the coverage.

  • Super Top-Up Health Insurance

There is no such thing as sufficient health insurance since the risks to one's health are almost limitless. Therefore, you can enhance your health insurance policy cover by purchasing a Super Top-Up Health Insurance Plan. With the Tata AIG Medicare Plus Plan, you can benefit from additional features, including lifelong renewal of policy and consumables benefits.

  • Critical Illness Health Insurance

A basic health insurance policy usually does not cover crucial illnesses and chronic medical conditions, including Diabetes, Cardiovascular Diseases, and Cancer. Therefore, individuals who have any such disease or medical condition should opt for our Critical Illness Health Insurance Plan that has been specifically designed to offer coverage to people suffering from said illnesses.

  • Personal Accident Insurance Policy

Accidents carry the power to ruin your life to varying degrees. Therefore, in order to protect yourself against the financial losses arising out of disability or death resulting from an accident, it is advisable to purchase a Personal Accident Insurance Policy.

  • Coronavirus Health Insurance

The past two years have made the entire world witness an unprecedented global pandemic, one that refuses to wane. Therefore, we offer a Covid-19 cover along with our major health insurance plans so as to enable our policyholders to battle the disease sans any financial worries.

Benefits and Features of Health Insurance

There are several benefits of having a suitable health insurance policy. Some of the aforementioned benefits are as follows:

  • Coverage for hospitalisation expenses

Our health insurance policies cover all the expenses pertaining to your hospitalisation as well as the ones that precede and succeed it. Therefore, you get a comprehensive financial cover against the most common illnesses. With the ever-rising cost of medical care and consultation, it is advisable to purchase medical insurance at as early a stage of your life as possible.

  • Financial protection against critical illnesses

With specialised policies that have been designed to provide financial support to individuals battling critical illnesses such as heart diseases and renal failure, you can be assured of significant support for yourself and your family in the unfortunate event of you developing any such illness or medical illness. Since lifestyle-related disorders, including Diabetes, are prevalent in these times, a suitable health insurance policy can act as a financial cushion for you amidst difficult circumstances.

  • Coverage for accident-induced injuries

Life is filled with uncertainties, and accidents are far too common for anyone to evade. Therefore, an adequate health insurance plan can prove of great help to you and your family if an accident results in your passing or getting disabled.

  • Tax benefits

Under Section 80D of the Income Tax Act, 1961, you can claim deductions for the premium paid under a health insurance policy. The aforementioned deduction is permissible to the tune of ₹25,000 for individuals below the age of 60 years and ₹50,000 for those above it. Click here to know more about the health insurance tax benefits.

  • Covid-19 cover

The cost of the treatment for Covid-19 can be quite substantial, ranging from the expenses for Oxygen cylinders, emergency medical transportation, and the cost of ICU beds. Therefore, our medical insurance plans include coverage for the expenses associated with your treatment for Covid-19. These plans have been designed keeping in mind the impact the virus can have on a family and their finances.

To sum it up

No one of us is immune to the devastating effects of any event that causes an adverse impact on our health, thereby making medical insurance a prerequisite for everyone. With the ever-increasing threats to your health, ranging from lifestyle disorders to lethal global viruses, it is important to invest in a suitable health insurance policy. Such an investment is an investment in your health as well as the financial security of your family.

Opt for a suitable medical insurance plan at the earliest and be assured of financial protection against health-related concerns. You can peruse the diverse range of Tata AIG health insurance plans here!

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