Health Insurance, explained simply
A hospital bill should not empty your savings.
Health insurance pays for your medical treatment when you are admitted to hospital. You pay a premium every year, and the insurance company covers the costs up to a limit called the sum insured.
It works like a spare tyre. You carry it all the time and hope you never need it. On the day you do, you are very glad it is there.
Types of health insurance
Each type does a different job. Here is what the names mean.
Individual Plans
One person, one sum insured. The full cover is available to that person alone.
Family Floater Plans
One sum insured shared by the whole family. Any member can use it, and it usually costs less than separate plans.
Critical Illness Cover
Pays a lump sum if you are diagnosed with a listed serious illness, such as cancer or a heart attack.
Top-Up Plans
Extra cover that starts once your bills cross a set amount. A low-cost way to increase your protection.
How it works
- 1
Decide who and how much
Choose which family members to cover and a sum insured that fits hospital costs in your city.
- 2
Share your health history
Tell the insurer about existing illnesses honestly. This protects your future claims.
- 3
Pay and get your card
After the premium is paid, the insurer issues the policy and a health card.
- 4
Use it when needed
Show the card at a network hospital for cashless treatment, or pay the bill and claim it back later.
- 5
Renew every year
Renew on time without a gap so your benefits and waiting-period credit continue.
A cashless claim
Kavita has a policy with a sum insured of ₹5,00,000. She needs surgery and the hospital bill comes to ₹3,00,000. Because it is a network hospital, the insurer pays the covered amount directly to the hospital. Kavita pays only for items the policy does not cover.
Illustration only. What is paid depends on the policy terms, limits and waiting periods.
Who is it good for?
- Every family, at every age
- People who rely only on employer cover, which ends when the job ends
- Parents and senior citizens, who are more likely to need hospital care
- Self-employed people with no employer cover
Things to keep in mind
- Existing illnesses are covered only after a waiting period, which can be up to 3 years
- Most claims are not payable in the first 30 days, except for accidents
- Policies have limits such as room rent caps, co-payment and exclusions
- Premiums rise as you grow older
- Hiding medical history can lead to a rejected claim
Health Insurance: questions people ask
Explore our other services
Still have a question?
Talk to our team. We will explain health insurance in your own language and help you compare the options. The decision always stays with you.
Disclaimer: Insurance is the subject matter of solicitation. The information provided is for illustrative purposes only. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale. IRDAI License No: IRDAI/AGN/100984838. The information on this page is for general education only and is not investment, tax or insurance advice.