Where To Buy Health Insurance From A Bank Or An Insurance Company?

What Is Health Insurance?

 With Health Insurance the insurer pays for insured’s hospitalization, within the term of the plan. The insured makes periodic premiums to keep the policy active. The extent of coverage depends on the premiums paid and the kind of plan opted.

Most Health Insurance plans have a waiting period. Waiting period is the time in which your insurance claim will not be honored. Waiting period is generally one month from the start date of your policy. Accidents are covered in the waiting period.

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Where To Buy Health Insurance From A Bank Or An Insurance Company?

SEE ALSO: Best Health Insurance Plans in India

Types Of Health Insurance

In the year 2000, Insurance Regulatory and Development Authority, IRDA, liberalized and allowed private insurers enter the insurance sector. Private insurers introduced innovative insurance policies in India. Below mentioned are the types of Health Insurance available in India.

• Hospitalization Plans: These are indemnity plans that cover hospitalization expenses. Maximum amount covered is the sum insured. This sum insured is applicable in case of individual Health Insurance. In case of health insurance floater plans, all family members under the plan are covered.
• Top-up Policy: This plan is targeted at individuals who are covered under their employer’s Health Insurance plan which may not be sufficient. You can top-up your existing plan with a top-up health insurance policy.
• Family Floater Health Insurance: Family Floater Health Insurance plan covers all the members in the family under a single plan. This works on the assumption that not more than one person in the family falls sick at a time.
• Pre-Existing Disease Cover Plans: This plan is targeted at those individuals having a pre-existing disease. This plan covers them under the policy for pre-existing diseases, after a waiting period of 2 to 4 years.
• Senior Citizen Health Insurance: This plan covers the elderly. As per IRDA guidelines, all the Insurance companies must cover individuals under their Health Insurance policies up to the age of 65 years.
• Maternal Insurance Policy: This policy covers hospital expenses related to maternity. Both post and pre maternity expenses are covered under the policy. Maternal Insurance Policy has wide range of hospitals under its network.
• Hospitalization Daily Cash Benefit Plan: This plan pays a fixed sum for each day when the insured is hospitalized. 
• Critical Illness Plan: This plan comes in handy when the insured is diagnosed with a critical illness. Each plan has certain critical illnesses that are covered. Few insurers make part payments that would benefit the insured.
• Pro-Active Plans: These plans are designed on individual basis. The plan is designed by looking at the medical history of the individual.

5 Reasons Why You Must Have Health Insurance

• Modern Work Culture: Modern Work Culture requires you to be flexible and ready to work at all times. This leads to a hectic work schedule, imbalance in work-life, unhealthy food habits and so on that would impact your health. Considering this, it’s only wise to avail a Health Insurance Plan.
•  Rising Medical Expenses: Healthcare is becoming expensive each day. In case of a medical emergency, if you don’t have Health Insurance, then you would end up spending all your savings on medical bills. Availing a Health Insurance would be beneficial.
• Tax Exemptions: Premiums paid on Health Insurance gives tax exemptions as per section 80D under Income Tax Act. Senior citizens get higher tax benefits.
• Pre And Post Hospitalization Coverage: Most insurers cover both pre and post hospitalization. Diagnostic tests and scans are also covered under the Health Insurance.
• Additional Benefits: Health Insurance companies offer additional benefits like regular health check-ups, ambulance coverage and so on. Few insurers pay out a sum called ‘No Claim Bonus’ if there are no claims made over a course of time, generally a year.

SEE ALSO: Can You Get A Health Insurance Plan For Cancer Patients?

Where To Buy Health Insurance From A Bank Or An Insurance Company?

In India, most banks offer Health Insurance plans. Along with banks, there are a plenty of private insurers which offer Health Insurance. Availing a Health Insurance from banks and private insurers has its own benefits and disadvantages. You need to understand requirements carefully before choosing the health insurance plan and company.

SEE ALSO: Making Claims On Multiple Health Insurance Policies Made Easy

Why Buy Health Insurance From A Bank?

Bank is just a mediator between you and an insurance company. Health insurance policies from banks have lower premiums and often need no medical check-up before starting the policy. This is advantageous particularly when you have a pre-existing disease and can start claiming for the insured amounts immediately. Premiums payable are same for all, regardless of age and health conditions.

Even older individuals can start their health insurance plans with banks. Rejection of Health Insurance application by banks is lower and the application process is simple.

Meanwhile, Health Insurance policies availed from banks has few drawbacks. As the premiums paid are low, the cover is also low. Tie-up between the bank and insurer might end anytime and your insurance policy is in jeopardy. The terms and conditions set by the insurer could change anytime. The claim settlement is a herculean task as it requires a lot of documentation which takes time and impacts your busy schedule as there is no Third Party Administrator (TPA) involved in all this.

Why Buy Health Insurance From Insurance Company?

Health Insurance availed from an insurer might have higher premiums but also lot of benefits. The insured amount is generally high and gives coverage across diseases and hospitals.

Some Insurance companies offer free periodic health checkups. You would be eligible for ‘No Claim Bonus’, in case you have not made any claim over a period of time. The claim settlement process is smooth and you are supported by a Third Party Administrator (TPA) at all times. 

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