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.

  3. Critical Illness Plans


    Critical Illness Plans cover specific life threatening diseases. These diseases could require prolonged treatment or even change in lifestyle. Unlike hospitalisation plans, payout is made on Sum insured 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. E.g. Herceptin, a cancer medicine costs between Rs. 75,000 - Rs.1 lakh per bottle#. A patient usually requires 16 bottles for treatment. That's Rs. 8 - 12 lakh just for the medicine. Then add hospitalisation costs, doctor consultation fees, chemotherapy costs, etc. and your overall expenses could exceed 20 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.


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.


#Source: http://www.firstpost.com/living/how-indians-can-protect-themselves-against-their-biggest-killers-2565712.html


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



  • Critical illness benefit

    Guaranteed cash up to 1 Crore for 34 critical illnesses* including cancer, heart attack & kidney failure

  • 100% terminal illness benefit

    If you are diagnosed with a terminal Illness during the policy term, you get the complete life cover

  • 200% accidental death benefit

    In case of death of the life assured due to an accident, the nominee will receive double the life cover^^

  • Protection against disability

    In case of permanent disability due to an accident, the policy continues no more premiums to be paid

  • Increase life cover

    Option to increase life cover at important milestones of life like marriage and birth / adoption of child

  • Protection for your family

    High life cover at affordable rates with the assurance of our high claims settlement ratio of 93.8% as per IRDAI annual report 2014 - 2015




Priya is a 32 years old IT consultant. Her family has a history of critical illnesses. Realizing the need for protection in her fast-paced life, Priya wants to be well prepared for unforseen circumstances in life.
ICICI Pru iProtect Smart provides the perfect solution for her needs.

Priya buys ICICI Pru iProtect Smart

  • Life cover of 1 Crore with policy term 30 years and regular premium payment
  • Critical Illness Benefit of 25 lakh
  • Annual Premium 15,811~

At 40 yrs Priya is diagnosed with a Critical Illness

  • 25 lakh is paid to her as a lump sum and the policy continues with the life cover reduced to 75 lakh

  • Annual Premium will get reduced to 6,155

Priya’s unfortunate death

  • Nominee gets lump sum death benefit of 75 lakh and the policy terminates.

  • 32
  • 40
  • 52

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