Health Insurance Policy Features
Health insurance is an essential financial tool that protects you from rising medical costs. A good health insurance policy offers several useful features such as cashless treatment, pre and post-hospitalization cover, no-claim bonus, and lifetime renewability. These features not only provide financial safety during medical emergencies but also ensure peace of mind. Understanding these features can help you choose the best plan suited to your needs. In this article, we will explain the key features of a health insurance policy in simple language so you can make an informed decision.
1. Cashless Hospitalization
One of the most important features is cashless hospitalization. In this benefit, the insurance company directly settles the hospital bills with the network hospital, so you don’t need to pay from your pocket during emergencies.
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Available only at network hospitals
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Pre-authorization is required
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Saves time and effort during critical situations
2. Pre and Post-Hospitalization Coverage
Health insurance not only covers hospitalization expenses but also provides financial help for pre and post-hospitalization costs such as:
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Doctor consultations
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Medical tests
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Medicines and follow-ups
Generally, 30 days before and 60–90 days after hospitalization are covered, depending on the policy.
3. Daycare Procedures
Modern medical treatments often do not require long hospital stays. A good policy covers daycare procedures, which are treatments that are completed in less than 24 hours.
Examples include:
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Cataract surgery
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Chemotherapy
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Dialysis
This feature is helpful as it covers many minor but important procedures.
4. No Claim Bonus (NCB)
If you do not make any claim during a policy year, you are rewarded with a No Claim Bonus.
Benefits of NCB:
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Increase in sum insured without extra cost
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Discount on renewal premium
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Encourages healthy living
For example, if your sum insured is ₹5 lakh, and you didn’t make any claims, it might increase to ₹6 lakh next year.
5. Lifetime Renewability
As per IRDAI guidelines, most health insurance policies now come with lifetime renewability. This means:
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You can renew your policy without any age limit
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No restrictions in your senior years
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Continued coverage for life
This is especially helpful when you grow older and may need more medical attention.
6. Free Health Check-ups
Some health insurance plans offer complimentary health check-ups every 1–3 years. These check-ups help in early detection of diseases and maintaining a healthy lifestyle.
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Available for policyholders who renew regularly
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May be based on claim-free years
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Includes basic tests like blood sugar, cholesterol, etc.
7. Maternity and Newborn Cover
Modern health policies include maternity benefits and newborn baby cover. These features are helpful for young couples and growing families.
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Covers delivery expenses
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Vaccination costs for the baby
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Usually comes with a 2–4 year waiting period
8. Tax Benefits Under Section 80D
Health insurance provides tax benefits under Section 80D of the Income Tax Act.
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Up to ₹25,000 deduction for premiums paid (₹50,000 for senior citizens)
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Additional deductions for insuring parents
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Helps reduce overall tax liability
9. Portability Option
If you’re not happy with your existing insurance company, you can port your policy to another insurer without losing your benefits like waiting period or NCB.
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Apply for portability before renewal
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Ideal for better service or more benefits
10. Waiting Period for Pre-existing Diseases
Every policy has a waiting period, usually 2–4 years, for covering pre-existing diseases like diabetes, BP, or asthma. It’s important to check this before buying the policy.
Conclusion
Understanding the key features of a health insurance policy helps you get the most value from your plan. From cashless treatment and day care procedures to tax benefits and lifetime renewability, these features ensure that your medical needs are met efficiently. Always compare plans based on these features and choose one that offers maximum coverage with minimum conditions. Remember, health insurance is not just a tax-saving tool, but a smart investment for your family’s well-being.