Health Insurance in India – All You Need To Know

In India, medical expenses are rising every year — from hospital bills to medicine costs. A single health emergency can burn a hole in your savings. That’s why health insurance is not a luxury anymore, it’s a necessity.

If you're new to health insurance or want to understand it better, this blog is your complete guide — explained in simple words.

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What is Health Insurance?

Health insurance is a contract between you and the insurance company. You pay a fixed amount (called a premium), and in return, the company pays for your medical expenses when you fall ill or get hospitalized.

What Does It Cover?

A typical health insurance policy in India covers:

• Hospitalization costs (room rent, ICU charges, nursing)

• Doctor's fees and consultation

• Pre & post-hospitalization expenses

• Diagnostic tests & reports

• Surgeries and treatment

• Day-care procedures (like cataract surgery)

• Ambulance charges

Some plans also cover maternity expenses, AYUSH treatments (Ayurveda, Yoga, Unani, etc.), and critical illnesses.

Types of Health Insurance Plans

1. Individual Health Insurance
   Covers only one person.

2. Family Floater Plan
   Covers the whole family (spouse, kids, parents) under one sum insured.

3. Senior Citizen Plan
   Specifically designed for people above 60 years of age.

4. Critical Illness Insurance
   Offers a lump sum if you're diagnosed with major illnesses like cancer, stroke, or heart disease.

5. Top-Up Plan
   Additional coverage if your current health insurance limit is not enough.

Why You Should Buy Health Insurance Early

• Lower premium costs

• No waiting period issues

• Young & healthy = quick approval

• Start building your “no-claim bonus”

How to Choose the Right Policy

Here are some tips:

• Choose enough sum insured (₹5–10 lakhs minimum)

• Look at network hospitals (cashless facility nearby)

• Check waiting periods (for pre-existing diseases)

• Read about exclusions (what’s not covered)

• Compare premium vs benefits across companies

Is Health Insurance Tax-Free?

Yes! You can get a tax deduction under Section 80D of the Income Tax Act:

• Up to ₹25,000 (for self and family)

• ₹50,000 if you're a senior citizen

Popular Health Insurance Companies in India

• Star Health Insurance

• HDFC ERGO

• Niva Bupa (formerly Max Bupa)

• ICICI Lombard

• Aditya Birla Capital

• Care Health Insurance

• New India Assurance (Government-backed)

Final Thoughts

Health insurance is a shield that protects your finances when life throws unexpected health issues your way. Buying it early, choosing the right plan, and understanding the terms can save you from stress later.

Still confused about which health plan suits you best?

Reach out to Fundcera — we’ll help you compare the best health insurance options with expert advice and zero hassle.