What is Health Insurance

Health insurance is a type of insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalisation costs, cost of medicines or doctor consultation fees.


Types of Health Insurance

There are two basic types of health insurance:

1. Mediclaim Plans

Mediclaim or hospitalisation plans are the most basic type of health insurance plans. They cover the cost of treatment when you are admitted in the hospital. The payout is made on actual expenses incurred in the hospital by submitting original bills. Most of these plans cover entire family up to a certain limit.

2. Critical Illness Insurance Plans

Critical Illness Insurance Plans cover specific life threatening diseases. These diseases could require prolonged treatment or even change in lifestyle. Unlike hospitalisation plans, payout is made on Critical Illness cover chosen by the customer and not on actual expenses incurred in the hospital, thereby giving flexibility to use the monies for changing lifestyle, medicines and as substitute for income for the time you could not resume work due to illness. Payout under the plans is made on diagnosis of the disease for which original medical bills are not required.


Why do you need Health Insurance now?

No one plans to fall ill or get hurt, but a serious illness can strike anyone at any time. The cost of treating the illness can cause serious financial strain on the savings you have accumulated over time. This means that you might have to compromise on providing your child the best quality education or defaulting on your home loan payments. Today, the cost of medical treatment is continuously rising. For eg. Herceptin, a cancer medicine costs approximately 1,10,000 for a vial of 440 mgs Depending on the weight, a depatient usually requires 17-19 bottles for treatment over the course of a year . That's 18 - 20 lakh just for the medicine^. Then add hospitalisation costs, doctor consultation fees, chemotherapy costs, etc. and your overall expenses could exceed 25 lakh. These costs which are already very high are increasing every year. That is why most smart people have taken necessary precautions to insure their health as soon as possible.

Health insurance is a living benefit, where you would need monies at the time if dire need. One health disease can drain out all the savings you have made for your children’s education, marriage, buying a house or even retirement. You would not want your family’s dreams to get shattered just because of an illness, especially when you could have protected yourself from it financially. It is beneficial to take a health insurance policy when you are young and healthy .As you get older, not only does your premium increase, but you also stand a chance of being denied a health cover by the insurance company.

How to choose a good health insurance plan?

Anybody who has already brought a health insurance policy will tell you that buying one is one of the smartest financial decisions any earning individual can make. Now, that you have decided to buy a health insurance policy, you need to know how to select a good health insurance plan that will take care of all your needs. To make this decision easier for you here is a list of benefits any good health insurance plan should offer you:

  • Protection against a large number of critical illnesses
  • Flexibility to choose your health cover
  • No increase in premiums during the policy term even if your health condition changes
  • Long policy term that covers you even in your old age
  • Large hospital network so that you have easy access to medical treatment

Should I buy a Mediclaim plan or a Critical Illness Insurance plan?

A mediclaim plan will either reimburse all your hospitalisation expenses or settle the hospital bills via a cashless facility. A critical illness insurance plan will give you a lump sum payout on detection of a critical illness. You don’t have to be hospitalized for the same. If you are unable to work because of the illness, then you can use the amount as a substitute for your monthly income. You can even use the money to cover expenses for doctor visits, medicine purchases, medical tests or any other expense that might arise during this time. That is why you need both – a mediclaim plan to cover your hospitalisation expenses and a critical illness insurance plan to cover your loss of income & other expenses that arise because of an illness.



Key benefits of ICICI Prudential Smart Health Cover with ICICI Pru iProtect Smart





Anil is a 35 year old IT consultant. His friend’s family has a history of critical illnesses & he has seen how it has drained their savings in just a short span of time. He wants to make sure that this does not happen to his family and opts for ICICI Prudential Smart Health Cover with ICICI Pru iProtect Smart with a critical illness cover of 10 lakh for a term of 15 years.




^Source: http://spicyip.com/2012/06/dealing-with-cost-of-cancer-treatment.html

This is designed from ICICI Pru iProtect Smart “Life and Health” option. It is not mandatory for you to purchase this option only. You have the choice of purchasing other options of the product as per your needs.

*To know more about the illnesses covered, please refer to the leaflet. Only Doctor’s certificate confirming diagnosis to be submitted.

#The CI Benefit for Angioplasty is subject to a maximum of 5,00,000. On payment of Angioplasty, if the CI Benefit is more than 5,00,000 the policy will continue for other CIs with CI Benefit reduced by Angioplasty payout and correspondingly Life cover reduced by the same amount. The future premiums payable for the residual CI Benefit and correspondingly reduced Life Cover will reduce proportionately.

Tax benefits under the policy are subject to conditions under the provisions of the Income Tax Act, 1961. Service tax & applicable cesses will be charged extra, as per applicable rates. The tax laws are subject to amendments from time to time.

ICICI Prudential Life Insurance Company Limited. IRDAI Regn No. 105. CIN: U66010MH2000PLC127837. ADVT No: W/II/0975/2016-17. UIN: 105N151V01

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