Health Insurance Marketplaces: What They Are and How to Use Them?

marketplaces health insurance

Health insurance is a term that most people are familiar with. It’s something that people often talk about, share opinions on, and offer advice about based on their personal experiences. However, not everyone fully understands how it works and how to choose the best health policy for themselves and their loved ones.

In this discussion, let’s delve into health insurance basics, explore the differences between it and medical insurance, and explain why having this insurance is important.

What is Health Insurance?

When you have the insurance, you can count on financial support for your medical expenses, which can include pre and post-hospitalisation costs, room charges, doctor’s fees, ambulance fees, critical-illness-related expenses, and more.

In essence, this insurance is a contract between you (the insured) and an insurance company. You pay a regular premium to the insurer, and they promise to provide financial assistance for your healthcare needs. The cost of the premium is based on several factors such as your age, gender, lifestyle, and pre-existing health conditions.

Medical Insurance Vs Health Insurance

Many of us use the terms health policy and medical insurance plans interchangeably, but they are actually two different things that have one key similarity: both offer financial support to the policyholder in times of need.

Difference Medical Insurance Health Insurance
Coverage The insurance provides extensive coverage for a wide range of health conditions. Medical insurance offers limited and pre-defined coverage for specific health emergencies.
Sum Insured The insurance offers greater flexibility in terms of the sum insured amount, allowing policyholders to select the best policy for their needs. Medical insurance is relatively affordable and typically offers a sum insured amount of up to Rs. 5 lakhs, which is sufficient for smaller health emergencies.
Add-on Benefits These insurance policies also allow for the inclusion of add-on covers and riders, providing additional coverage and benefits. It does not allow for the addition of add-on covers or riders.
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How Do Marketplaces Health Insurance Work?

The insurance provides a sense of security and relief to policyholders, who can rest easy knowing they won’t be burdened with unforeseen medical expenses. While there are several types of insurance policies and plans available in India, the basic principles remain the same. Here’s a breakdown of how the policy works:

  • The first step is selecting an insurance policy that’s right for you. This involves assessing your needs and financial limitations and choosing a suitable policy and premium. Depending on your age and health conditions, the health insurance companies may require you to undergo a health check-up.
  • Once you’ve selected a sum insured and premium amount, you’ll need to pay the premium at regular intervals over a set period of time to take advantage of your insurance benefits.
  • If you experience a medical emergency or illness, you can make a claim on your insurance policy- the health insurance for marketplaces provide the same. Once the waiting period is over, provided the emergency is covered under the policy you opted for.

Advantages of The Insurance

Health and medical emergencies are unpredictable, and no one plans on falling ill. That’s why having proper insurance is crucial, and it offers several benefits, such as:

  • Protection for you and your family

You can choose from various types of insurance policies and plans, such as an individual plan or a family floater plan that covers your entire family. By analysing your needs and requirements, you can select the plan that provides the best overall coverage.

  • Reduces stress

Having this insurance reduces stress for the insured. In the event of a medical emergency, the insured won’t have to worry about paying the medical bills, as their insurance will have them covered. This allows the insured to focus on their recovery and well-being, rather than worrying about the financial burden of medical expenses.

  • No impact on savings

Since the premium is paid at regular intervals over a period of time, a sudden medical emergency won’t drain your savings all at once. The insurance helps in spreading the financial burden over time, making it easier for the insured to manage.

  • Lifetime renewability benefit

The Insurance Regulatory and Development Authority of India (IRDAI) mandates that all insurance companies must offer lifetime renewability benefits to policyholders. This means that the insured can renew their insurance policy without any upper age limit or restrictions. This benefit ensures that the insured can continue to avail of this insurance coverage throughout their life.

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Given the lifestyle people lead and the increasing incidence of illnesses and viruses, it is essential to have appropriate insurance for ourselves and our loved ones. To choose the right insurance policy that fits your requirements and those of your family, it is vital to understand how health insurance works. If you want to learn more about the insurance policies related to health, you can consult the Niva Bupa insurers.

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