Elements of health insurance – Terminologies and their benefits

Health Insurance, in the present day and age, has become indispensible for each one of us. It ensures you of the medical expenses that might be incurred by you in the future. There are various types of health insurance policies available like the individual health insurance policy, family health insurance policy and even group insurance policy. Depending on the need and requirement you can opt for any type of health insurance policy. Below are terminologies that are commonly associated with health insurance policies and their significance:

Health Insurance Premium

It is that amount which is to be paid regularly to the health insurance provider in order to maintain the validity of the policy and in turn the coverage. The amount to be paid as premium depends upon the nature and scope of the coverage.

Cumulative bonus

It is a kind of bonus that is awarded to the insured in lieu of each claim free year.

Medical check-ups

It is a pre-requisite before you are offered the policy. Typically, individuals below the age of 45 years are exempted from medical check-ups. This is basically done in order to ascertain the pre-existing medical conditions of the applicant.

Health Insurance Coverage

The overall scope of the policy such as costs of pre-hospitalization, stay in hospital as well as post-hospitalization expenses is termed as coverage.


There is various terms and conditions lay down by the health insurance provider in order to honor the claims. If the claim falls under the purview of those exclusions then the insurance company will not be obliged to pay compensation. Exclusions are specific scenarios in which the coverage of the policy is not valid such as damages caused due to driving under the influence of alcohol.

Health Insurance Income tax benefit

Income tax benefits are offered according to the section 80D of the income tax act on all the types of the health insurance policy..

You Might Also be Interested In

Twitter Feeds

Video: Self-help services with the HDFC ERGO Mobile App

Shambhav has had it with Babbar’s laid back attitude and he has something to say about how the HDFC ERGO Mobile App can help you #TakeItEasy as far as non-life insurance is concerned. #TakeItEasyWithMobile

Follow Us on Facebook