HEALTH INSURANCE
Health insurance is a type of insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalisation costs, cost of medicines or doctor consultation fees.
Types of Health Insurance
There are two basic types of health insurance:
1. Mediclaim Plans
Mediclaim or hospitalisation plans are the most basic type of health insurance plans. They cover the cost of treatment when you are admitted in the hospital. The payout is made on actual expenses incurred in the hospital by submitting original bills. Most of these plans cover the entire family up to a certain limit.
2. Critical Illness Insurance Plans
Critical Illness Insurance Plans cover specific life threatening diseases. These diseases could require prolonged treatment or even change in lifestyle. Unlike hospitalisation plans, the payout is made on Critical Illness cover chosen by the customer and not on actual expenses incurred in the hospital, thereby giving flexibility to use the monies for changing lifestyle, medicines and as a substitute for income for the time you could not resume work due to illness. Payout under these plans are made on diagnosis of the disease for which the original medical bills are not required.
Why is Health Insurance important?
1. Savings
The best part about health insurance is it helps to keep your savings intact in case there is a medical emergency. The insurer will take care of all the expenses such as hospitalization, drugs/medicines, etc. A health insurance plan is a trusted way to ensure a healthy and financially stable future.
2. Security of Family’s health
Protecting the health of self and your family members or parents is necessary. You can protect your family members by investing regularly in the family floater plan wherein you can also get health cover for your parents. This type of health insurance ensures that all types of medical treatments are covered.
3. High Medical Costs
Due to the high healthcare services cost, you may not be able to afford treatment. But when you have a health insurance cover, you can avail quality treatment at the best network hospitals. Network hospitals are those wherein insurers have a tie-up with hospitals that helps you get cashless treatment. With this facility, the insurance company directly settles the bills with the hospital.
4. Lifestyle changes
Our fast-paced lives have influenced our lifestyle choices. Work stress, indulgence in junk food, smoking, environmental changes, etc., affect our overall health, and this could lead to life-threatening diseases such as cancer, liver problem, kidney failure and so on. In such situations, health insurance will cover the medical and surgical expenses incurred during an illness. It is an established way to provide for health-related or medical emergencies.
How to choose a good health insurance plan?
Anybody who has already bought a health insurance policy will tell you that buying one is one of the smartest financial decisions any earning individual can make. Now, that you have decided to buy a health insurance policy, you need to know how to select a good health insurance plan that will take care of all your needs. To make this decision easier for you here is a list of benefits any good health insurance plan should offer you:
- 1. Protection against a large number of critical illnesses.
- 2. Flexibility to choose your health cover.
- 3. No increase in premiums during the policy term even if your health condition changes.
- 4. Long policy term that covers you even in your old age.
- 5. Large hospital network so that you have easy access to medical treatment.