At first glance, different medical insurance quotes, plans and policies may seem the same. However, after reviewing the entire thing and breaking through the technical jargon, you may discover they are quite different. Buying medical insurance is one of the most confusing things consumers purchase because of the often difficult-to-understand terminology, exclusions, and limitations, contained in these medical insurance polices.

Medical insurance coverage is available from commercial medical insurance companies; hospital and medical service plan providers.

Medical insurance can be purchased on an individual or group basis. Group health insurance, generally available through an employer, may also be offered by other various organizations such as federal societies, labor unions, college health departments, and rural and consumer health cooperatives. The employer usually pays part or all of the costs for the group health insurance available to employees. However, since the protection provided by group health insurance varies from plan to plan, it is wise to check with your employer's human resource department or your union office, to find out exactly what medical insurance coverage and benefits are available to you.

If your group health insurance does not fully cover all of your health needs or you are self-employed, then you may need to supplement your coverage with an individual medical insurance plan. Individual medical insurance can be tailored to your particular needs and provided by the medical insurance company or agent of your choice. Because medical insurance coverage and costs of such policies vary from company to company you should shop around and compare the prices as well as benefits offered before making a decision to purchase medical insurance.

Medical Expense Plans--- pay expenses incurred for diagnosis and treatment of medical conditions

Payments may be made to either YOU or your medical provider directly. If it’s your provider, you must "assign" your benefits to them. The policy or employer benefit booklet will detail the terms and conditions of what is covered and what is not covered under the medical insurance plan. Its important to read this contract BEFORE you need to use your medical insurance plan and ask your agent or employer to explain anything that may be confusing.

Full “freedom-of-choice” plans allow you to choose any doctor and hospital. These policies call for a "deductible." This means that you must pay a stated amount first, before the medical insurance company begins paying benefits. The deductible can be anywhere upto several thousand dollars. The general rule here is: the higher the deductible you are willing to accept, the lower the cost of your overall medical insurance premium. "Co-insurance"- the medical costs you are obligated to pay with your insurer, is also involved.

Preferred Provider Organizations (PPO) Plans allow you to choose a doctor or hospital from a list of "preferred" providers in order to receive maximum benefits. If you go to a doctor or hospital that is not a member of the preferred list, the medical insurance plan will cover a lesser percentage of the costs. PPO plans have many of the same features as freedom-of-choice plans including coinsurance and stop loss provisions. It’s a good idea to check with the medical insurance carrier BEFORE you use the plan to determine if your physician or hospital is a contracting provider with your plan. Also, it is your responsibility under these types of medical insurance plans to make sure your doctor refers you to other "preferred" providers.

What are Prepaid Health Contracts?

Health Maintenance Organizations (HMOs) were formed with the idea that health costs could be controlled and they could provide preventive health care before members become ill. HMOs are comprised of hospitals, doctors and allied medical personnel who have contracted to provide health care to members in return for a pre-paid monthly medical insurance charge.

When joining an HMO medical insurance plan, members select a doctor, their "primary care physician," from a list provided by the HMO. Typically family practitioners, internists, and pediatricians manage all medical care including referrals to specialists and determining whether further lab tests or x-rays are needed. The system is designed to eliminate any unnecessary care, which would ultimately increase total health care costs.

Today, health insurance is becoming a necessity and one should look at it as an essential investment for the well being of self and family. Mediclaim policies are extremely important to protect against huge medical expenditure when one is ill.

The average life span of an individual has increased considerably in India due to better health conditions, awareness about one's well being and improved medical facilities.

At the same time, the medical costs of treatment and surgery have increased a lot. Therefore, medical insurance makes complete sense, especially where majority of the family members are dependent on one or two earning members, as is generally the case in an average Indian household.

Medical insurance policies entitle you and your family members covered under the policy to take advantage of the high cover in times of medical emergencies.

There are two options available in the case of mediclaim policies:

1. Floater policy where the maximum sum assured allowed for all members of the policy in a year is Rs 10 lakh

2. Individual policies where each member can take cover up to Rs 10 lakh in a year

Individual policies are more expensive than the floater policies, so depending on the need, one can choose the option that suits his/her need the best. An additional advantage of individual policies is the no-claim bonus declared for every claim free year of the policy.

Although the maximum cover that can be taken through an insurance company by an individual is Rs 10 lakh, you are allowed to take multiple policies with different insurance companies with a maximum cover of Rs 10 lakh per policy.

In times of claim, the amount required will be split proportionately between all the insurance companies.

The average life span of an individual has increased considerably in India due to better health conditions, awareness about one's well being and improved medical facilities.

At the same time, the medical costs of treatment and surgery have increased a lot. Therefore, medical insurance makes complete sense, especially where majority of the family members are dependent on one or two earning members, as is generally the case in an average Indian household.

Medical insurance policies entitle you and your family members covered under the policy to take advantage of the high cover in times of medical emergencies.

There are two options available in the case of mediclaim policies:

1. Floater policy where the maximum sum assured allowed for all members of the policy in a year is Rs 10 lakh

2. Individual policies where each member can take cover up to Rs 10 lakh in a year

Individual policies are more expensive than the floater policies, so depending on the need, one can choose the option that suits his/her need the best. An additional advantage of individual policies is the no-claim bonus declared for every claim free year of the policy.

Although the maximum cover that can be taken through an insurance company by an individual is Rs 10 lakh, you are allowed to take multiple policies with different insurance companies with a maximum cover of Rs 10 lakh per policy.

In times of claim, the amount required will be split proportionately between all the insurance companies.

Medical insurance covers individuals and their families against unforeseen expenses arising from illness, injury or accidents. Many consumers purchase auto insurance to protect their vehicle, others purchase homeowners insurance to protect their property. Medical insurance is just another type of protection that is always a smart investment.

The term health insurance (popularly known as Medical Insurance or Mediclaim) is a type of insurance that covers your medical expenses.The concept of health insurance is new in India but its awareness is growing fast. Health insurance comes in handy in case of severe emergencies. Life is unpredictable, insurance can make it safe and secure from bearing huge financial loss. A health insurance policy is a contract between an insurance company and an individual. Sometimes it is associated with covering disability and custodial needs. The contract is renewable annually.

Health insurance is affordable and carries the assurance and freedom from insecurities that threaten normalcy now and then. The type and amount of health care costs that will be covered by the health plan are specified in advance. Health plans are available in two formats, individual and group plans. In an individual policy you are personally the owner of the policy. While in a group plan, the sponsor owns the policy and the people covered under it are called its members.

Today, with medical insurance costs rising dramatically each year, even relatively simple medical procedures can run into the thousands of dollars. In addition, the type of care available and various policy options are also becoming more complex.

In order to reduce the risk of unexpected medical insurance costs, private health insurance companies now offer a vast array of medical insurance plans. These plans vary widely in terms of coverage, costs and benefits. It’s important to know the difference.

If you are young and just starting a family, then it is recommend that you choose an individual policy with a lower sum assured of Rs 2.5 to 3 lakh for all members of the family. If you have dependent parents under the age of 60, it would be advisable to cover them as well.

Depending on affordability, you can either take individual policies or a floater policy to provide medical insurance for them.

Medical checkups and illness covered

Most mediclaim policies do not have medical check-ups for individuals under the age of 45/50. They also have a set time period, which could be anywhere between 2 to 4 years, within which pre-existing illnesses are not covered.

Dental and illnesses relating to pregnancy are not covered by majority of the health insurance policies. It is also advisable to go through the policy specifics to learn what payouts can be expected from the policy in case of different illnesses and medical procedures.

Role of an advisor

What is equally important while taking a health insurance policy is having a good advisor. Like other insurance policies, medical insurance requires good amount of policy servicing, especially while making a claim.

Many insurance companies now provide cashless medical claim facilities wherein the individual can get the treatment done in specified hospitals without making any direct payment. The payment is made directly to the hospital by the insurance company, subject to the terms and conditions of the medical insurance policy.

Even though there is sufficient paper work involved in the process, it helps in times of urgent need to know that such facilities exist and can be called upon.

Insurance companies now provide market-linked health insurance policies as well. These are a combination of mediclaim and investment and work similar to unit linked life insurance policies.

Payment made for medical insurance can help save tax under Sec 80D of the Income Tax Act. As per section 80D of the Act, a deduction can be claimed by an individual in respect of the medical insurance premium paid up to Rs 15,000 for himself and his spouse and dependent children.

Additionally, s/he can also claim deduction for the medical insurance premium up to Rs 15,000 for his parent(s). Further, the aforesaid deductions are increased up to Rs 20,000 in case the premium is paid for senior citizen (65 years or more). It is, however, important to note that the medical insurance premium should not be paid by cash to avail this tax benefit.

As important as it is to insure one's life to protect your loved ones, it is of equal importance to insure you and your family members from the rising future medical expenses. So whatever might be your earning, status of health, age or level of employment, go get a medical and health insurance plan for you and your family members.

Mediclaim policy is intended to provide coverage to unexpected medical expenses that may lead to financial hardships. With growing popularity of the health insurance policy, it becomes nearly impossible for us to pick out a suitable policy at the affordable prices. Like all other forms of insurance, medical health insurance also comes with different policies and premium rates. A government organization or private insurance companies may provide medical health insurance. However, here are some tips and tricks shared with you, so that you can have no problem while choosing the mediclaim policy for your needs.

First, we should discuss that most of the mediclaim policies come with a minimum duration of 1 year and a maximum duration of 2 years. It is framed by evaluating the overall healthcare expenses and the monthly premium to be paid. These details are included in the insurance agreement and accordingly the benefits are paid by the insurance company. You can buy the mediclaim policy collectively or individually. Collective policies may include family insurance, group insurance or short-term health insurance. Family mediclaim policies include the entire family that is stay-at- home parents; students etc. while the Group insurance are usually bought by employers to cover all their employees at discount rates and greater benefits. However, in both the cases, the amount of premium is nominal.

Short term insurance offers coverage for short span of time like college years or in between jobs etc. Such kind of mediclaim policy usually preferred by self employed, entrepreneurs etc. At a low rate, an individual can opt to cover his or her spouse as well. This is flexible with a wide range of rates and premiums. Opting for the right scheme or policy may save you from incurring heavy expenses that may crop up from an unforeseen accident or hospitalization of the loved one.

There are many mediclaim policies, which cover a certain set of accidents and ailments. Any pre existing ailment like diabetes, poor eyesight etc is not included in the insurance. In this case, the insurance provider covers the hospitalization bills after a brief check whether the rates applied are in line with the agreement made. However, any cost other than the rates applied by the insurance company is to be carried out by the patient himself. Surgical costs, outpatient bills are covered only if the amount fits the amount quoted in the insurance agreement.

Mostly, the mediclaim providers have a list of network hospitals, which provide a discount or other benefits to the client if the treatment is taken from any one of the hospitals enlisted. The interesting fact is that, nowadays many insurance providers offer provide cover to homeopathic treatments, however, in that case, you gave to get treatments from certain specified hospitals. Such mediclaim policies also offer coverage for death of the person covered and the benefit amount would be received by the nomine.

Choose a policy, which is easily customizable and offers you the reimbursement at the earliest.