What are Health Cover Plan in India and are They Worth It

When in a foreign country trying to make a life for yourself, the common concern that comes to mind is about the safety and well-being of the family. While you can talk to them every day on video calls, you cannot be there with them in unforeseen circumstances, like a medical emergency. There is always going to be a constant stress about whether your family is getting quality healthcare treatment or not. 

However, with an NRI health cover plan, you can rest assured that your family has access to good-quality healthcare services when needed. Let’s explore the fundamentals of an Indian health plan. 

What is a Health Cover Plan?

A health plan is simply a type of health insurance policy designed to help you manage and pay for medical expenses. You pay a regular premium, and in return, the insurer promises to cover a portion or all of your medical expenses, subject to the terms and conditions of the policy. A health cover plan is a broader term that can include various types of policies, such as:

• Individual Plans: These plans provide coverage for a single person. They are ideal if you are looking to secure your own health during your visits to India.
• Family Floater Plans: A single policy that covers the entire family (e.g., you, your spouse, and children). The sum insured "floats" among all members, meaning any family member can utilise the entire amount up to the limit.
• Critical Illness Plans: These are benefit-based plans that pay a lump sum upon the diagnosis of a specified critical illness, such as cancer or a heart attack, regardless of the actual medical expenses.
• Senior Citizen Plans: Specifically designed to cater to the healthcare needs of elderly people, often with a focus on pre-existing conditions and common age-related ailments.

Unlike the concept of a health cash plan immediate cover, which provides a fixed sum for specific events, a comprehensive health cover plan is designed to cover a wide range of medical expenses, including hospitalisation, pre- and post-hospitalisation costs, day-care procedures, and even ambulance charges.

The Significance of a Health Cover Plan

If you are wondering why it is so crucial to have a health plan in India, even if you are an NRI? Let’s take a look at the reasons: 

• Financial Protection for Your Family: For many NRIs, the primary motivation is to secure the health of their loved ones back home. For instance, a medical emergency for an ageing parent can lead to significant financial strain, especially if you are managing things from a different time zone. A health plan ensures that your family has access to quality medical care without having to worry about the immediate financial burden. This is a peace of mind that is truly priceless, especially when you are away from your family. 
• Access to Quality Healthcare: With a good health plan, your family can access a vast network of partner hospitals and clinics across India. This is especially beneficial as it allows for cashless hospitalisation. Instead of your family having to arrange large sums of money upfront, the insurance company directly settles the bills with the hospital. 
• Inflation is a Reality: Medical inflation in India is a serious concern. The cost of treatments, doctor consultations, and medicines is rising at an alarming rate. A high-sum-insured health plan can effectively counter this, ensuring that your savings don't get wiped out by a single medical event.
• Tax Benefits: Premiums paid for a health plan for your family in India are eligible for tax deductions under Section 80D of the Income Tax Act. While this may seem like a small benefit, it adds up over time and is a great way to save on your taxes.
• Preparation for the Future: Whether you plan to retire in India or just visit frequently, having a health plan already in place is a smart move. Many policies have a waiting period for pre-existing conditions. By getting a policy early, you can serve out this waiting period while you're still abroad, ensuring that you're fully covered when you return.

Factors to Consider When Buying a Health Cover Plan

The world of insurance can be confusing, but by keeping a few key factors in mind, you can make an informed decision. Remember, this is about finding the right fit for your unique needs as an NRI and for your family back in India.

• Sum Insured: This is the maximum amount the insurer will pay in a policy year. Given the rising healthcare costs, it's wise to choose a high sum insured. A health plan with a higher sum insured can provide comprehensive protection. Don't just look for a low premium; a higher sum insured offers better security.
• Network Hospitals: Check if the insurance provider has a wide network of hospitals, especially in the cities where your family resides. A large network ensures easy access to cashless facilities, which is a key advantage. You wouldn't want to get a health plan only to find that your preferred hospital isn't on the list.
• Claim Settlement Ratio (CSR): This ratio indicates the percentage of claims an insurer has settled in a given year. A higher CSR signifies a more reliable and trustworthy company. Look for a company with a consistently high CSR, as it reflects their commitment to customer satisfaction.
• Waiting Periods: Understand the waiting periods for different conditions. This includes the initial waiting period (usually 30 days) and specific waiting periods for ailments like hernias or cataracts. The waiting period for pre-existing diseases can be anywhere from 2 to 4 years. Choose a health plan with a shorter waiting period if possible.
• Coverage Features: Check for features like coverage for pre- and post-hospitalisation expenses, domiciliary hospitalisation (treatment at home), day-care procedures, and even an annual health check-up. A comprehensive health plan should cover a wide range of healthcare needs. 

Wrapping Up

In the end, choosing a health plan for your family in India is an act of love and foresight. It's about protecting the ones who matter most and ensuring that no matter the distance, their well-being is secure. 

At Niva Bupa, we understand the unique needs of NRIs health insurance. Our health cover plans are designed to be a bridge across continents, providing your family with the best of healthcare, right here in India. With a vast network of cashless hospitals, hassle-free claim settlements, and comprehensive coverage, we ensure that your family’s health is in safe hands.

People Also Ask

1. What is the difference between a health plan and a critical illness plan?

   A health plan reimburses you for hospitalisation and medical expenses, based on the bills incurred. A Critical Illness Plan, on the other hand, pays a lump sum amount upon the diagnosis of a specified critical illness, regardless of the actual treatment cost. It can be used for any purpose, including living expenses or paying off debts.

    

2. Are the premiums for a health plan in India tax-deductible for an NRI?

   Yes, premiums paid by an NRI for a health plan for their family in India are eligible for a tax deduction under Section 80D of the Income Tax Act.

    

3. Will a health plan purchased in the USA, like a Covered California Health Plan, work in India?

   No, most international plans, including covered california health plans, have geographical limitations and do not provide coverage for medical treatments in India. It is essential to have a separate health cover plan for India.

    

4. What is a "cashless claim"?

   A cashless claim allows you to get treatment at a network hospital without paying up front. The hospital and the insurer settle the bills directly, as long as the treatment is covered by your health plan.

    

5. Can I get a health plan for my elderly parents who have pre-existing conditions?

   Yes, most health cover plans for senior citizens cover pre-existing conditions after a specific waiting period, which typically ranges from 2 to 4 years.

    

6. What is the ideal sum insured for a health plan in India?

   Given the rising cost of healthcare, it is recommended to opt for a health plan with a high sum insured to ensure adequate coverage for major illnesses. However, the amount depends on your needs. 

    

7. Is a health cash plan cover better than a regular health cover plan?

   A health cash plan cover provides a fixed payout for specific events, while a regular health plan offers broader coverage for hospitalisation and other medical expenses. The latter is generally more comprehensive.

    

8. What is the significance of a "no claim bonus" in a health plan?

   A no-claim bonus (NCB) is a reward from the insurer for not making a claim during the policy year. It either increases your sum insured or provides a discount on your renewal premium.

    

9. Can I buy a health cover plan in India while I'm abroad?

   Yes, with the help of digital platforms and online services, many insurers allow NRIs to buy and manage their health cover plans for their families in India from their country of residence.

    

10. How does a family floater plan work?

    In a family floater plan, a single sum insured is shared among all family members. For example, in a ₹10 lakh plan covering a family of four, any member can use the entire ₹10 lakh for a medical emergency.