Health Insurance, also known as medical insurance policy, offers financial security by covering medical expenses such as hospitalization,
...
surgeries, medicines, and preventive care. It reduces out-of-pocket costs during illnesses or accidents, ensuring timely healthcare without financial strain.
Read More
A health insurance plan functions as a financial security cushion protecting people from medical expenses which happens as a result of illnesses or injuries or routine preventative care needs. Health insurance policy premiums enable members to benefit from financial protection for hospital care along with surgeries and outpatient needs and critical illness expenses. Through its protective function health insurance serves as a safety system which reduces excessive healthcare costs from unexpected medical situations.
💡 India’s health insurance market is projected to reach ₹1.97 lakh crore by 2028, growing at a CAGR of 12.8%. (Source)
💡 India will lead G20 nations in insurance premium growth, with an average annual rate of 7.3% from 2025 to 2029. (Source)
How Health Insurance Works? A Story
Step
Scenario
What Happens?
Buying Policy
Rahul buys a health insurance policy with ₹5 lakh coverage, paying an annual premium of ₹12,000.
Rahul secures financial protection against future medical expenses.
Falling
A year later, Rahul falls sick and needs hospitalization for dengue treatment.
He chooses a hospital from his insurer’s network to avail cashless claim benefits.
Hospitalization
Rahul gets admitted; the hospital informs the insurance company for pre-authorization.
The insurer verifies his policy details and approves the treatment expenses under the coverage limit.
Claim Process
The hospital submits all necessary documents: bills, discharge summary, and test reports.
Since it’s a network hospital, the insurer directly pays the medical bills (after deducting co-pay, if any).
Out-of-Pocket
Rahul’s policy has a 10% co-payment, so he pays ₹5,000 from his pocket for a ₹50,000 hospital bill.
The insurer covers ₹45,000, while Rahul pays ₹5,000 as part of the co-payment clause.
Recovery
Rahul recovers without worrying about huge medical expenses.
His health insurance saves him from financial stress, showcasing its true value.
*Rahul’s health insurance journey, shows how premiums, coverage, and claims work in real life.
Why is Health Insurance Important in Life?
Multiple factors make health insurance a fundamental requirement for people.
Financial Protection: By using health insurance a person receives protection from overwhelming medical expenses which protects both their savings and their financial well-being.
Access to Quality Healthcare: Selecting a solid health insurance policy allows you to receive premium healthcare services amidst increasing medical expenses.
Peace of Mind: Knowing you have a safety net in place allows you to focus on recovery rather than worrying about expenses during medical emergencies.
Preventive Care: Health insurance policies often include coverage for preventive health check-ups that help people identify and control possible healthcare issues at early stages.
What are the Types of Health Insurance?
The platform of Fincover has collated multiple health insurance options from various insurance companies to meet various customer requirements. The available health insurance options include a number of forms.
Senior Citizen Health Insurance has been created to support older adults with their health needs while offering benefits for chronic diseases and age-related medical requirements.
A Personal Accident Insurance policy offers a lump sum benefit for accidents that may lead to disability or death. It is an annually renewable policy and can cover individuals or groups.
Critical Illness Policies grant monetary benefits for cancer patients as well as heart disease patients and stroke victims to get specialized care while eliminating financial concerns.
Health insurance policies enable their members to access cashless hospital services within their network of hospitals during treatment emergencies without requiring additional financial expenses.
The insurance policy includes coverage for a broad spectrum of medical expenses that includes hospitalization along with surgeries diagnostic tests and access to both conventional and alternative treatments.
Health insurance premium payments qualify for tax deductions when you file your income tax according to the provisions mentioned in the Income Tax Act. Under Section 80D of the IT act, you can get a tax deduction of up to Rs 25,000 each year for health insurance premiums. For senior citizens, this increases to Rs 50,000
No health insurance claims in a policy year can mean higher sum insured when you renew your policy. Make sure you keep your health insurance valid to avail this benefit.
A quick settlement process enables you to receive urgent help in critical moments through Emergency Assistance.
Key Terms in Health Insurance
Term
Definition
Premium
The amount you pay regularly (monthly, quarterly, or annually) to keep your health insurance active.
Sum Insured
The maximum amount the insurer will pay for medical expenses in a policy year.
Deductible
You must pay a fixed amount out of pocket before the insurance starts covering your expenses.
Co-payment
A percentage of the claim amount that you must pay, while the insurer covers the rest.
Network Hospitals
Hospitals partnered with the insurer where you can avail cashless treatment.
Cashless Claim
A claim where the insurer directly settles the hospital bills without you having to pay upfront.
Reimbursement Claim
You pay medical expenses first and then claim reimbursement from the insurer.
Waiting Period
The initial period during which certain conditions (like pre-existing diseases) aren’t covered.
Pre-existing Diseases (PED)
Medical conditions you had before buying the policy, are often covered after a waiting period.
No Claim Bonus (NCB)
A reward (like increased coverage or reduced premium) for not making any claims during a policy year.
Exclusions
Medical conditions or treatments that are not covered under the health insurance policy.
Riders/Add-ons
Optional benefits you can add to your policy for enhanced coverage (e.g., critical illness coverage).
Free-look Period
A short period (usually 15-30 days) after buying the policy to review and cancel if unsatisfied.
How to Choose the Right Health Insurance Plan?
Health insurance policy selection proves to be an arduous task for many people. Fincover provides an easy-to-use platform that supports decision-making through its key factor-based comparison table. The table below contains important criteria which you can use to select the health insurance plan that fits your requirements best.
Criteria
What to Look For
Coverage Amount
Choose a sum insured that adequately covers for the medical expenses
Premium Cost
Compare premium amounts while ensuring it does not interfere with your regular budget
Network Hospitals
Check if your preferred hospitals that are accessible to you are available in the network hospital list of the policy you selected
Co-pay Options
Evaluate any co-payment clauses which may potentially cause you out-of-pocket expenses
Additional Benefits
Look for extras like free health check-ups, ambulance services, and wellness programs which motivate you to stay fit
Claim Settlement Ratio
A higher ratio indicates a more reliable insurer with efficient claim processing.
What are the Eligibility Criteria for Health Insurance?
The eligibility criteria for health insurance consist of these key factors.:
Age: Standard insurance policies include age-limited coverage which extends from young adults to senior citizens.
Medical History: Some insurance providers will need medical check-ups together with medical records assessments primarily for people with known health conditions.
Residency: To enroll in a policy you must be a resident of the country where the policy is available.
Income: Your annual earnings determine which plan and premium options you receive although they do not function as policy eligibility criteria.
What are the Documents Required for Health Insurance?
Document Type
Accepted Documents
Identity Proof
Aadhaar Card, PAN Card, Passport, Voter ID
Address Proof
Utility Bills, Aadhaar Card, Passport
Age Proof
Birth Certificate, Aadhaar Card, Passport
Income Proof (if required)
Salary Slip, IT Return, Bank Statement
Passport-size Photograph
Recent colored photo
Medical Reports
Health check-up reports (if applicable)
How to Claim Health Insurance?
A health insurance claim procedure follows different specific steps when claiming money. The following simplified breakdown explains the health insurance claim procedure:
Notify the Insurer: Contact your insurer immediately after any medical event that requires hospital admission.
Submit the Claim Form: The claim process demands both a fully completed Claim Form as well as all essential documents which must include medical fees with attached reports.
Claim Processing: Insurers evaluate claims through their assessment process before issuing payments matching policy terms either through cashless provision or reimbursement benefits.
What are the Types of Health Insurance Claims?
Claim Type
Description
Cashless Claim
The insurer directly settles the bill with the hospital.
Reimbursement Claim
You pay the hospital bills first and get reimbursed by the insurer.
Cashless claims vs reimbursement claims
Cashless Claim Process:
Admission to Network Hospital: Visit a hospital listed in the insurer’s network.
Intimation to Insurer: Inform the insurance provider immediately or within 24 hours of admission.
Fill out the Pre-Authorization Form: Submit the form to the hospital’s insurance desk.
Verification by Insurer: The insurer reviews the documents and approves the claim.
Claim Settlement: The insurer settles the medical bills directly with the hospital.
Reimbursement Claim Process:
Get Treated at Any Hospital: Choose any hospital for treatment.
Pay Hospital Bills: Settle all medical expenses at discharge.
Collect Documents: Gather all original medical bills, reports, discharge summaries, etc.
Submit Claim Form: Fill out the reimbursement claim form and attach all documents.
Claim Verification: The insurer reviews the documents and processes the claim.
Reimbursement: The approved claim amount is transferred to your bank account.
Health Insurance Tax Benefits (Under Section 80D) for FY 2024-25
Category
Who Can Claim?
Deduction Limit (₹)
Self & Family (Below 60)
Premiums paid for self, spouse, and children
Up to ₹25,000 per year
Parents (Below 60)
Premiums paid for parents
Additional ₹25,000 per year
Parents (Above 60 – Senior Citizens)
Premiums paid for senior citizen parents
Up to ₹50,000 per year
Self (If Senior Citizen)
If you’re 60 or older
Up to ₹50,000 per year
Preventive Health Check-ups
Included within the overall limit
Up to ₹5,000 (part of the ₹25,000/₹50,000 limit)
Example:
If you’re under 60 and pay ₹20,000 for your family’s premium and ₹50,000 for senior citizen parents, you can claim ₹70,000 in tax deductions.
@fincover
How to Buy Health Insurance?
Fincover gets you the best insurance available in the market. Our compare and buy feature helps you choose the most suitable policy. Here is what you need to do:
Select ‘Health Insurance’: On the homepage, click on the ‘Health Insurance’ section.
Compare Plans: Fincover will display a list of health insurance plans from top insurers.
Choose the Best Plan: Select a plan that suits your medical needs and budget.
Submit Personal Information: Provide detailed information, including your medical history (if applicable).
Make Payment: Pay the premium securely online using net banking, UPI, debit/credit cards.
Get Policy Document: After successful payment, receive your policy document instantly via email.
Policy Activation: Your health insurance policy will be active, and you’ll receive a health card for cashless claims.
How to Renew Health Insurance?
Step
What to Do
1. Review Policy
Check your current policy details—coverage, sum insured, and any recent claims.
2. Compare Options
Compare plans from other insurers if you’re considering portability for better benefits.
3. Update Information
Update personal details, like contact info or any changes in health conditions.
4. Choose Add-ons
Add or remove riders (e.g., critical illness cover) based on your current needs.
5. Calculate Premium
Review the updated premium amount, considering age-related or policy changes.
6. Make Payment
Pay the renewal premium online (via net banking, UPI, credit/debit card) or offline.
7. Receive Confirmation
Get the renewed policy document via email or post—check for accuracy.
8. Keep Records
Save the policy copy and payment receipt for future reference and claim purposes.
Tips:
Renew before the expiry date to avoid policy lapses.
Utilize the grace period (15–30 days) if you miss the deadline.
Ensure continuous coverage to retain benefits like No Claim Bonus (NCB).
What is Health Insurance Portability?
Health insurance portability allows you to switch from one insurer to another without losing key benefits like your No Claim Bonus (NCB) and waiting period credits for pre-existing conditions. Introduced by IRDAI in 2011, it empowers policyholders to choose better plans with improved coverage, lower premiums, or better services. You can port individual or family floater policies, but you must apply at least 45 days before your current policy’s renewal date.
The best health insurance varies based on your needs. Top-rated insurers include ICICI Lombard, HDFC Ergo, Star Health, Max Bupa, and Care Health Insurance. Factors like claim settlement ratio, network hospitals, coverage options, and customer reviews help determine the best plan for you.
Your ideal coverage depends on factors like age, city, family size, and lifestyle.
Single (urban areas): ₹10–15 lakh
Family floater: ₹20–25 lakh
Senior citizens: ₹25 lakh+ with critical illness cover
Consider rising medical inflation and hospitalization costs when choosing coverage.
Yes, health insurance is worth it—even for young, healthy individuals. It protects against unexpected medical emergencies, ensures access to quality care, and offers tax benefits under Section 80D. Without insurance, medical bills can drain your savings.
Yes, health insurance covers COVID-19 under standard policies. Many plans also cover chronic diseases, maternity, mental health, and specific critical illnesses. Check policy inclusions for details.
Yes, many insurers offer no-medical-checkup policies for people below 45–50 years with no pre-existing conditions. However, for higher sum insured or older applicants, medical tests may be required.
Without health insurance, you face financial risks like high out-of-pocket medical expenses, potential medical debt, and limited access to quality healthcare during emergencies.
Yes, many insurers offer instant health insurance plans with online application, quick approval, and digital policy issuance. Some popular providers include ICICI Lombard, HDFC Ergo, and Fincover.com for easy comparison and purchase.
You should purchase health insurance to avoid draining your personal savings in the event of sudden health complication. Your health insurance provider will take care of the medical expenses in the event of hospitalization.
Yes. The option to pay monthly premiums for hospitalization insurance has been offered recently. Please check the terms before you opt for it and remember, you need to keep your policy valid at all times by being prompt with premium payments.
Yes, you can have more than one hospitalization insurance plan and you can make claims under them to avail higher coverage. However a combination of a basic policy and a top-up plan and/or a benefit based critical illness plan may be more beneficial.
You can increase the sum insured for your health insurance policy at the time of renewal. The waiting period for pre-existing conditions and specified procedures will start at that time for the enhanced amount.
Yes. You can get coverage for yourself, spouse, kids, parents and parents in law under the same policy. You can opt for individual sum insured for each or a family floater. .
Yes, there are many benefits in purchasing health insurance while you are young such as low premium, lower rejection rates, getting over with your waiting period, cumulative bonuses.
You must immediately contact your insurance provider plus provide necessary documents after hospitalization to complete the claim process correctly. Fincover provides users with a user-friendly application process that assists them throughout their journey.