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 the 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, the 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 a substitute for income for the time you could not resume work due to illness. Payout under these plans are made on diagnosis of the disease for which the 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 e.g. Herceptin, a cancer medicine costs approximately 1,10,000 for a vial of 440 mgs. Depending on the weight, a patient 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 lakhs. 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 of dire need. One disease can drain out all the savings you have made for your children’s education, marriage, for 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 bought 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.
Check out the health insurance plans from ICICI Pru here –
ICICI Pru iProtect Smart
*The above mentioned premium rate is for ICICI Pru iProtect Smart for `1 Crore of life cover for a 25 year old healthy male for a policy term of 21 years with regular income payout option. The annual premium will be `5725 & the monthly premium will be `490. The premium amounts are inclusive of taxes.
‘The above mentioned premium rate is for iProtect Smart for `50 Lakh of life cover for a 25 year old healthy male for a policy term of 15 years with regular income payout option. The annual premium will be `3,297 & the monthly premium will be `282. The premium amounts are inclusive of taxes.
‘‘The above mentioned premium rate is for `50 Lakhs of life cover and `10 lakhs of accelerated critical illness cover for a 25 year old healthy male for a policy term of 18 years with regular income payout option. The annual premium amount for this assumption will be `4,909 and monthly premium will be `420.
#The above mentioned premium rate is for `1 crore of life cover and `10 lakhs of accelerated critical illness cover for a 25 year old healthy male for a policy term of 14 years with regular income payout option. The annual premium amount for this assumption will be `6,907 and monthly premium will be `590. Premium amount will differ according to the benefit option chosen.
+Accidental Death benefit is up to `2 Crores. Accidental Death Benefit is available in Life Plus and All in One options.
^The critical illness benefit is an accelerated benefit and the death benefit will be reduced by the critical illness cover paid to the policyholder. The future premiums payable for the residual CI Benefit will reduce proportionately. In case the CI Benefit equal to the Death Benefit, the policy will terminate on payment of the CI Benefit. Only doctor’s certificate confirming diagnosis needs to be submitted. 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. To know more about the illnesses covered, please refer to the Sales brochure. Available under Life and Health and All in One options.
~Based on number of policies sold online between January 2016 – June 2016.
1 For Terminal illness, policy will terminate on payment of this benefit.
2 Top Selling saving plan refers to ICICI Prudential Life Insurance plans which are bought by customers through the website with our Zero-Paper-Process.
3 ICICI Pru iProtect Smart was voted product of the year 2016 in the consumer survey of product innovation in Life Insurance category in a survey of over 7,000 people by Nielsen.
4 Nothing herein contained shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of assurance, which may have been effected with intent to defraud creditors. In case of any third party claim in the Courts of India with regards to the insurance proceeds, the amount shall be subject to the judiciary directions. Please seek professional legal advice for the applicability of this provision.
*For further details, please refer to the information provided in the product brochure. ICICI Pru iProtect Smart UIN 105N151V03. W/II/1607/2017-18.
ICICI Pru Heart/Cancer Protect
1The above mentioned premium rate is for `10 Lakh Cancer Cover and `10 Lakh Heart Cover for a 30 year old healthy male for a policy term of 5 years. The total single premium amount will be ` 6,223. If you choose monthly mode, then the premium amount works out to ` 158.
2A discount of 5% on the first year’s premium will be offered on purchase of ICICI Pru Heart / Cancer Protect when life assured and his/ her spouse is covered under the same policy. The policy benefits of both the Lives Assured shall be independent of each other. The Sums Assured of both the lives could be different. A claim made by one Life Assured under the policy does not affect benefits of other Life Assured. This Family benefit has to be chosen at the inception of the policy only, spouse cannot be added once the policy is issued. This discount is not applicable on Single Pay Policy. With one policy, you can avail either Family Benefit or Loyalty Benefit.
3Existing customer discount of 5% on the first years premium is available only for policies with Regular Premium Payment Option, it is not applicable for Single pay policies. With one policy, you can avail either Family Benefit or Loyalty Benefit.
4A lump sum is paid out on diagnosis of any of the listed conditions. This payout is based on the level of the condition. In any case, the total payout in the policy cannot exceed 100% of the Sum Assured of the cover selected. Please refer to the sales brochure to know about the payouts at different level of condition.
5The Company shall waive all future premiums on a claim of Minor condition under the chosen cover; or on the diagnosis of Permanent Disability (PD)of the Life Assured due to an Accident. If both Cancer cover and Heart cover are chosen such waiver is allowed on a minor/major condition claim under either Cancer cover or Heart cover; or on the diagnosis of PD. This benefit is available only if the Policy is in force as on the date of diagnosis of the condition/at the time of accident.
6In case of Minor Conditions, the total payout will be capped at 100% of the Sum Assured.
7Under the Income Benefit, the Sum Assured has to be chosen at inception of the plan. An amount equal to 1% of the Sum Assured chosen at inception will be paid to the policyholder each month, for a period of 5 years upon a valid claim under any of the listed Major conditions. Where the Cancer cover and Heart cover are taken together, pay out under Income Benefit will be triggered for only that cover for which a claim of Major condition is registered and all Benefits through other cover remains unaffected.
8With Increasing Income Benefit, the Sum Assured chosen at inception increases by 10% simple interest on each policy anniversary, for every claim free year. The maximum Sum Assured under the cover will be capped at 200% of the Sum Assured chosen at inception. This increase in Sum Assured will stop on occurrence of first claim under the cover. Where Cancer cover and Heart cover are chosen together, the Sums Assured for both the covers increase by 10% simple interest on each policy anniversary, for every claim free year. The maximum sum assured will be capped at 200% of the Sum Assured chosen at inception for each type of cover. In case of occurrence of first claim under any one type of cover, the increase in Sum Assured will stop for that cover type and Increasing Cover Benefit will continue for the other type of cover, for which no claim has occurred.
Tax benefits under the policy are subject to conditions under the provisions of the Income Tax Act, 1961. Applicable taxes will be charged extra as per prevailing rates. 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: 105N151V03